Step 1: Solving the differential equation.
The given differential equation is a Cauchy-Euler equation. Assuming the solution is of the form \( y(x) = x^r \), we substitute this into the equation:
\[
x^2 r(r - 1) x^{r-2} + 5x r x^{r-1} + 4x^r = 0
\]
This simplifies to:
\[
r(r - 1) + 5r + 4 = 0
\]
Solving the characteristic equation:
\[
r^2 + 4r + 4 = 0
\]
This gives \( r = -2 \). The general solution is:
\[
y(x) = (A + B \ln(x)) x^{-2}
\]
Step 2: Applying initial conditions.
Substituting the initial conditions \( y(1) = 1 \) and \( y'(1) = 0 \) into the solution, we find \( A = 1 \) and \( B = 2 \). Thus, the solution is:
\[
y(x) = (1 + 2 \ln(x)) x^{-2}
\]
Step 3: Finding \( e^2 y(e) \).
Substituting \( x = e \):
\[
y(e) = (1 + 2 \ln(e)) e^{-2} = (1 + 2) e^{-2} = 3e^{-2}
\]
Thus:
\[
e^2 y(e) = e^2 \cdot 3e^{-2} = 3
\]
Step 4: Conclusion.
Therefore, the value of \( e^2 y(e) \) is \( \boxed{3} \).