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NORDEX AG (DE:NDX1)
:NDX1
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Nordex
(OTC:NDX1)
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Rating:70Outperform
Price Target:
€30.00
▲(10.46% Upside)
Nordex's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. The technical analysis supports a bullish trend, although the high P/E ratio suggests overvaluation concerns. The absence of corporate events and dividend yield slightly dampens the overall attractiveness.
Positive Factors
Negative Factors
Nordex (NDX1) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€6.42B
Dividend YieldN/A
Average Volume (3M)551.77K
Price to Earnings (P/E)106.5
Beta (1Y)0.70
Revenue Growth0.04%
EPS GrowthN/A
CountryDE
Employees10,559
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.13
Shares Outstanding236,450,360
10 Day Avg. Volume513,520
30 Day Avg. Volume551,772
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€25.05Price Target Upside-7.78% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering10
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, which includes both the manufacturing and installation of these systems. The company also earns money from long-term service agreements, which provide maintenance and support for the turbines after installation. Key revenue streams include the sale of turbine components, installation contracts, and ongoing service contracts. Additionally, Nordex benefits from strategic partnerships with energy companies and project developers, which help secure large-scale wind farm projects, thereby ensuring a steady flow of income. Factors such as government incentives for renewable energy, increasing global demand for clean energy solutions, and the company's focus on innovation and efficiency in turbine design also contribute significantly to its earnings.
Nordex Earnings Call Summary
Earnings Call Date:Jul 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong order intake growth, improved profitability, and a positive cash flow position, indicating a robust operational performance. However, challenges persist in specific markets like Brazil and the U.S., and there was a significant increase in warranty use related to legacy issues. Overall, the positive aspects outweigh the negative, leading to an optimistic outlook.Q2-2025 Updates
Positive Updates
Strong Order Intake Growth
Nordex recorded a turbine order intake of 2.3 gigawatts in Q2, which represents an 82% increase in gigawatts and an 83% increase in euro value year-over-year.
Improved Profitability
EBITDA rose by 64% year-over-year, and the EBITDA margin increased by 220 basis points, reaching 5.8%. Net income turned positive at EUR 31 million.
Positive Free Cash Flow
Nordex achieved a free cash flow of EUR 145 million in Q2, driven by strong operational performance.
Service Business Growth
Service revenues grew by 17% year-over-year, with an EBIT margin reaching 17.7%.
Solid Financial Position
The company ended Q2 with a cash position of approximately EUR 1.2 billion and a net cash total of EUR 942 million.
Negative Updates
Challenging Market in Brazil
The market in Brazil remains challenging due to low electricity prices and grid issues, impacting Nordex's business operations there.
Uncertainty in the U.S. Market
The outlook in the U.S. market remains uncertain due to executive orders impacting safe harbor provisions and order pipelines.
Increased Warranty Use
Warranty use in Q2 was at its highest level in years, at EUR 85 million, partly due to legacy issues requiring provisions to be moved to liabilities.
Company Guidance
In the Nordex SE Q2 2025 Results Conference Call, the company reported significant progress, with a turbine order intake of 2.3 gigawatts, reflecting an 82% increase and translating to an 83% year-on-year increase in euro value. The order book reached over EUR 14 billion, with the turbine order book increasing by 28% to EUR 8.9 billion. EBITDA rose by 64% year-over-year, resulting in a 5.8% EBITDA margin, and the Service business achieved an EBIT margin of 17.7%. Nordex generated a positive free cash flow of EUR 145 million, with expectations of maintaining solid free cash flow for the full year 2025. The company remains confident in reaching its sales guidance range of EUR 7.4 billion to EUR 7.9 billion and targets an 8% EBITDA margin in the medium term.Nordex Financial Statement Overview
Summary
Nordex has demonstrated resilience with strong revenue growth and improved profitability. Cash flow generation is robust, and the balance sheet is stable, though leverage requires attention. Overall, financial performance is on a positive trajectory.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.65
Positive
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.70
Positive
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.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.17B | 7.30B | 6.49B | 5.69B | 5.44B | 4.65B |
| Gross Profit | 1.48B | 1.53B | 127.81M | 486.05M | 826.96M | 547.36M |
| EBITDA | 385.48M | 313.32M | 17.16M | -241.65M | 60.06M | 100.11M |
| Net Income | 60.32M | 8.84M | -302.83M | -497.76M | -230.16M | -129.71M |
Balance Sheet | ||||||
| Total Assets | 5.67B | 5.63B | 5.42B | 4.76B | 4.11B | 4.41B |
| Cash, Cash Equivalents and Short-Term Investments | 1.25B | 1.17B | 925.92M | 662.06M | 792.12M | 793.32M |
| Total Debt | 472.80M | 500.56M | 475.07M | 581.89M | 487.00M | 919.83M |
| Total Liabilities | 4.65B | 4.63B | 4.44B | 3.88B | 3.05B | 3.64B |
| Stockholders Equity | 1.01B | 990.65M | 976.60M | 878.06M | 1.06B | 773.53M |
Cash Flow | ||||||
| Free Cash Flow | 548.76M | 265.56M | 28.32M | -555.46M | -42.09M | -516.06M |
| Operating Cash Flow | 706.34M | 429.75M | 161.20M | -350.09M | 127.56M | -352.20M |
| Investing Cash Flow | -126.90M | -159.08M | -139.68M | -163.81M | -152.09M | 231.82M |
| Financing Cash Flow | -45.09M | -37.88M | 285.66M | 345.53M | 62.34M | 405.80M |
Nordex Technical Analysis
Positive
27.16
Price Trends
21.99
Positive
20.74
Positive
17.81
Positive
Market Momentum
0.56
Negative
74.99
Negative
45.16
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 27.16 is above the 20-day moving average (MA) of 23.37, above the 50-day MA of 21.99, and above the 200-day MA of 17.81, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 74.99 is Negative, neither overbought nor oversold. The STOCH value of 45.16 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | €4.06B | 14.14 | 15.37% | 2.03% | 10.25% | 20.72% | |
| ― | €3.14B | 11.01 | 11.92% | 2.60% | -1.50% | 2.01% | |
| ― | €6.42B | 106.47 | 5.96% | ― | 0.04% | ― | |
| ― | €10.13B | 26.00 | 17.92% | 1.81% | 1.93% | 2.27% | |
| ― | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
| ― | $88.56B | 90.78 | 9.35% | ― | 15.48% | 70.73% | |
| ― | €1.44B | -76.85 | -6.59% | 3.44% | -15.83% | -120.52% |
* Industrials Sector Average
DE:NDX1
Nordex
27.16
14.01
106.54%
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Nordex Corporate Events
Nordex AG Earnings Call: Growth Amid Challenges
Jul 30, 2025
The recent earnings call of Nordex AG reflected a generally positive sentiment, highlighting significant growth in order intake and profitability, particularly in the European market. Despite facing challenges in the U.S. and Brazilian markets, as well as dealing with high warranty provisions, the company’s performance remains robust with continuous improvement in financial metrics.
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.