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Nordex (DE:NDX1)
XETRA:NDX1
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Nordex
(XETRA:NDX1)
Rating:60Neutral
Price Target:
€17.50
▼(-8.76%Downside)
Positive Factors
Financial Performance
Profitability and free cash flow came in significantly ahead of consensus, with margins 50 basis points ahead.
Order Intake
Nordex reported a strong Q2 order intake, hitting another record level for the quarter, 82% ahead of 2Q24.
Valuation
Valuation remains attractive, suggesting potential for growth.
Negative Factors
Sales Performance
Nordex's Q1 sales did disappoint, leading to an 11% miss on sales due to lower installation volumes and timing of projects.
Nordex (NDX1) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$4.57B
Dividend YieldN/A
Average Volume (3M)576.27K
Price to Earnings (P/E)151.6
Beta (1Y)0.93
Revenue Growth4.58%
EPS GrowthN/A
CountryDE
Employees10,559
SectorIndustrials
Sector Strength90
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.03
Shares Outstanding236,450,360
10 Day Avg. Volume725,754
30 Day Avg. Volume576,271
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)4.62
Price to Sales (P/S)0.00
P/FCF Ratio9.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.57Price Target Upside7.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Nordex Business Overview & Revenue Model
Company DescriptionNordex SE, together with its subsidiaries, develops, manufactures, and distributes multi-megawatt onshore wind turbines worldwide. It operates through Projects and Services segments. The company provides project development services, as well as acquires rights and creates the infrastructure required to construct wind power systems at suitable locations. It also offers maintenance and remote monitoring services for wind farms, as well as spare parts, and repair and technical enhancement services for existing turbines. The company was incorporated in 1985 and is headquartered in Hamburg, Germany.
How the Company Makes MoneyNordex generates revenue primarily through the sale of wind turbines and associated services. The company's key revenue streams include the manufacturing and sale of wind turbine systems, as well as maintenance, repair, and operational services provided to wind farm operators. Additionally, Nordex engages in long-term service agreements with clients, ensuring steady income through maintenance contracts. Strategic partnerships and collaborations with energy providers and governments also play a significant role in securing large-scale projects, enhancing Nordex's market presence and revenue potential.
Nordex Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q1-2025)
| % Change Since: 21.70%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong start to 2025 with significant growth in order intake, improved profitability, and service business expansion. However, there are challenges with revenue decrease and installation delays. Overall, the company remains confident in achieving its guidance and medium-term goals.Q1-2025 Updates
Positive Updates
Strong Start to 2025
Nordex delivered improved margins and a positive free cash flow in Q1 2025. Total order book grew by 21%, with a turbine order intake of 2.2 gigawatts, up 5% from the previous quarter, and a 12% year-on-year increase in euro value.
Improved Profitability
Total EBITDA rose by 53%, reaching €80 million, translating into a 5.5% EBITDA margin and a positive net income of €8 million, more than the total net income for the full year 2024.
Service Business Growth
Service EBIT increased by 1.7% with a margin of 16.8%. Service revenue grew by 19% to €197 million in Q1 2025, with an order book increase of 37% year-on-year.
Order Book Expansion
Total order book grew to €13.5 billion, with a 12% increase in the turbine order book to €8.2 billion. The service order book reached €5.2 billion, reflecting expansion over the past 2 years.
Strategic Market Developments
Positive developments in Europe, especially Germany, where 12 to 14 gigawatts are expected to be auctioned in 2025. No expected material impact from U.S. tariff discussions on financial performance.
Negative Updates
Revenue Decrease
Sales slightly above €1.4 billion compared to €1.6 billion in the previous year, mainly due to low installation levels and timing effects on production.
Installation Delays
Installations slightly over 1 gigawatt, down 5% year-on-year, due to customer delays. Despite this, a positive free cash flow of €4 million was achieved.
High Non-Allocated Costs
Non-allocated costs stood at €104 million, the highest Q1 level in recent history, with no specific breakdown provided.
Company Guidance
During the Nordex SE Q1 2025 Results Conference Call, the company reported a strong beginning to the year with a total order book growth of 21% and a turbine order intake of 2.2 gigawatts, reflecting a 5% increase and a 12% year-on-year rise in euro value. The firm's total EBITDA for the first quarter surged by 53%, achieving €80 million with an EBITDA margin of 5.5% and a net income of €8 million. The service EBIT increased by 1.7%, reaching a margin of 16.8%, and the service revenue grew by 19% to €197 million. Despite initial softness in installations, Nordex managed a positive free cash flow of €4 million and maintains confidence in achieving positive free cash flow for the full year 2025. The company continues to anticipate achieving its medium-term EBITDA margin target of 8%, driven by strategic developments in Europe, especially Germany, and remains unaffected by U.S. tariff changes.Nordex Financial Statement Overview
Summary
Nordex has shown resilience in improving its financial performance, with strong revenue growth and positive net income in the TTM period. The cash flow has improved significantly, and the balance sheet is stable. However, operational efficiency remains a challenge, and attention to leverage is necessary.Income Statement
The company has shown a positive trend in revenue growth, with the most recent TTM revenue increasing by 10.7% from 2023 to 2024. Gross profit margin improved significantly from 2022 to 2024, though it declined in the latest TTM period. Net income turned positive in the TTM period, indicating improved profitability. However, margins such as EBIT and EBITDA remain relatively low, pointing to challenges in operational efficiency.60
Neutral
Balance Sheet
The company has maintained a stable balance sheet with an improving equity position. The debt-to-equity ratio is manageable, and the equity ratio indicates moderate financial stability. However, the overall leverage has been a concern in previous years, and the recent improvement in net debt position is a positive sign.55
Neutral
Cash Flow
Cash flow from operations has improved markedly, with a substantial increase in free cash flow in the TTM period. The company has managed capital expenditures well, contributing to positive free cash flow growth. The operating cash flow to net income ratio is strong, indicating solid cash generation relative to net income.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.30B | 6.49B | 5.69B | 5.44B | 4.65B |
| Gross Profit | 1.53B | 127.81M | 486.05M | 826.96M | 547.36M |
| EBITDA | 313.32M | 17.16M | -241.65M | 60.06M | 100.11M |
| Net Income | 8.84M | -302.83M | -497.76M | -230.16M | -129.71M |
Balance Sheet | |||||
| Total Assets | 5.63B | 5.42B | 4.76B | 4.11B | 4.41B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 925.92M | 662.06M | 792.12M | 793.32M |
| Total Debt | 500.56M | 475.07M | 581.89M | 487.00M | 919.83M |
| Total Liabilities | 4.63B | 4.44B | 3.88B | 3.05B | 3.64B |
| Stockholders Equity | 990.65M | 976.60M | 878.06M | 1.06B | 773.53M |
Cash Flow | |||||
| Free Cash Flow | 265.56M | 28.32M | -555.46M | -42.09M | -516.06M |
| Operating Cash Flow | 429.75M | 161.20M | -350.09M | 127.56M | -352.20M |
| Investing Cash Flow | -159.08M | -139.68M | -163.81M | -152.09M | 231.82M |
| Financing Cash Flow | -37.88M | 285.66M | 345.53M | 62.34M | 405.80M |
Nordex Technical Analysis
Positive
19.18
Price Trends
17.77
Positive
16.58
Positive
14.29
Positive
Market Momentum
0.51
Negative
63.63
Neutral
75.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NDX1, the sentiment is Positive. The current price of 19.18 is above the 20-day moving average (MA) of 18.01, above the 50-day MA of 17.77, and above the 200-day MA of 14.29, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 63.63 is Neutral, neither overbought nor oversold. The STOCH value of 75.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:NDX1.
Nordex Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $4.57B | 151.63 | 3.02% | ― | 4.58% | ― | |
58 Neutral | HK$14.11B | 4.63 | -3.01% | 6.76% | 3.67% | -54.16% | |
| ― | €1.57B | 15.13 | 4.78% | 3.08% | ― | ― | |
| ― | €9.45B | 24.99 | 16.56% | 1.97% | ― | ― | |
| ― | €4.19B | 14.52 | 12.41% | 1.95% | ― | ― | |
| ― | €4.40B | 15.32 | 15.25% | 1.60% | ― | ― | |
| ― | $85.65B | 398.59 | 1.79% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
DE:NDX1
Nordex
19.18
5.78
43.13%
GB:0J9C
Durr AG
23.10
2.95
14.64%
GB:0MPJ
GEA Group AG
59.40
20.16
51.38%
GB:0EXP
Jungheinrich
33.94
4.16
13.97%
GB:0LQ4
Krones AG
139.33
15.24
12.28%
SMEGF
Siemens Energy
107.05
79.85
293.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.