E.ON

Analysis of E.ON share price

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Do you want to make investments in the E.ON share price? If so, we suggest you take a few moments to familiarize yourself with the elements that you'll need for the analyses of this value. We'll be presenting the various activities carried out by the E.ON group with its main sources of income as well as its main competitors on the market and its recent partnerships. We'll also explain how to set up an effective fundamental analysis on the price of this stock with the main points to follow.

Elements that can influence the price of this asset:

Analysis N°1

First of all, make sur you follow the international expansion strategy of the E.ON group, especially on Russian territory which is one of its main targets.

Analysis N°2

Also keep an eye on the operations carried out by E.ON aimed at expanding its activities and its presence in the renewable energies segment as well as the development of the LNG segment aimed at diversifying its portfolio of products and services.

Analysis N°3

You should also follow the evolution of demand from the group's new production capacities in Europe.

Analysis N°4

German legislation will also be an element to watch as it can have an influence on the development of the group's activities and therefore on the growth of its stock market share.

Analysis N°5

It's also important to closely follow the news and publications of the group's main competitors which can have an influence on the whole sector.

Analysis N°6

Finally, make sure to follow the environmental concerns with the greatest interest as well as the decisions taken in Europe in this direction which can have a clear influence on this value.

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General presentation of E.ON

Having a solid grasp on the E.ON group is essential if you want to better anticipate future changes in the price of this security. Here are some explanations about the company and its most important sources of income.

The E.ON SE group is a German company specializing in the energy sector. More specifically, the company is currently one of the world leaders in the field of electricity and natural gas production.

To better understand the activities of E .ON group, it's interesting to divide them into different divisions according to the share of turnover they generate as so:

  • First of all, the sale of electrical energy represents the major part of the group's income with 72.7% of turnover.
  • Next comes the distribution of natural gas, which alone represents 19.7% of turnover.
  • Finally, the remaining 7.6% of the group's turnover is generated by ancillary activities.

You should also keep an eye on the geographical distribution of the revenues of the E.ON group which generates 48.7% of its revenues in Germany, 24.3% in the United Kingdom, 5.2% in Sweden, 21.1% in Europe and 0.7% in the rest of the world.

Analysis of E.ON share price
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The major competitors of E.ON

Now let's find out who E.ON's main competitors are with the 6 largest producers of electricity and natural gas in Europe:

Enel 

First of all, Enel is the leading producer of electricity in Italy and the leading European in terms of market capitalization. The Italian State is still the main shareholder of this group with over 30% of the capital and employs 63,000 people. It specializes in the transport and distribution of electricity and natural gas in Italy, Europe and America.

Iberdrola 

Next comes the Iberdrola group which is one of the main Spanish producers and distributors of energy and the worldwide leader in wind energy. In addition to Spain, Ibedrola is present in the United Kingdom, Brazil, the United States and Mexico.

National Grid

National Grid is number three in Europe in energy production and operates on both sides of the Atlantic in the distribution of electricity and natural gas. The group owns and operates 131,000 kilometres of power lines and 57,000 km of gas pipelines for the transmission and distribution of electricity and gas in the United States. It's the result of the privatization of British energy assets under Margaret Thatcher in the 1980s.

Orsted

Another group to watch is the Orsted group which is Danish and owns 24 offshore and 4 onshore wind farms and is also active in the production of electricity, gas and bioenergy. Almost a quarter of its turnover is generated nationally with a quarter in Germany and the Netherlands and half in the United Kingdom.

Engie 

Of course, the French company Engie, resulting from the merger between Gaz de France and Suez, is to be followed with its 160,000 employees around the world. The Engie group is also listed on several major European stock market indices.

EDF 

The EDF group is also a serious competitor to E.ON. It is currently the French leader in energy as well as the main global operator in the nuclear power plant segment. It employs nearly 166,000 people and has also been present, since 2019, in the field of recharging for electric vehicles following various strategic acquisitions.


The major partners of E.ON

The E.ON group also has strategic partners which are important to take into account as these strategic alliances can have an influence on the activities of the group and its share on the stock market. Here are two specific examples.

ALD Automotive

In 2020, the E.ON group signed a strategic partnership with ALD Automotive as part of the ALD Switch offer. The main goal of this partnership is the development and marketing of mobility, financing and energy services and more specifically the implementation of a common offer that includes advice, planning, installation, operation and maintenance of the charging infrastructure that will enrich ALD Automotive's range of electric vehicles. Another project involves the marketing of car sharing services. The two groups have already implemented these synergies in Denmark, where they offer an electric vehicle rental service at attractive prices for individual E.ON customers. In Norway, it's a solution dedicated to fleets which simplifies electrification with an all-inclusive formula that has been offered to companies and communities.

E-Smart Systems

Another important partnership was signed with eSmart Systems which is a supplier of artificial intelligence-powered network inspection software aimed at improving the management of its European distribution network. This 12-month partnership began with the deployment of Grid Vision, which supports all inspection and maintenance workflows for 45,000 kilometres of high and medium voltage overhead lines. ESmart Systems software detects, analyses and visualizes components and potential faults within the infrastructure based on images taken by drones.

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Frequently Asked Questions

What are the different subsidiaries owned by E.ON?

The E.ON group conducts its business and revenue worldwide through the operation of several major subsidiaries located in certain countries. Ther's Nord Streal AG, Unipro, E.ON UK, E.ON Czech Holding, E.ON Beteiligungen, E.ON Business Services, E.ON Ceska republica, ED.G, E.ON Energie and Jihoceska plynarenska among the 100% subsidiaries of this energy group.

How and when was the E.ON group created?

The E.ON group as we know it today originated from the merger of two companies, the German energy groups Veba and Viag which was launched in 1999. This transaction was carried out for more than 13.8 billion euros. Veba shareholders own two thirds of the E.ON Company since this merger. At the time of its creation, the E.ON group was the third largest company in the electricity sector in Europe.

Should a technical analysis of the E.ON share price be carried out?

In addition to the fundamental analysist, it is essential to carry out a coherent and complete technical analysis of the E.ON share price. It's important to carry out a graphical study using several technical indicators of market trend or volatility. This data should of course be completed with the signals from the fundamental analysis of this stock or the financial analysis of the company.

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