Nordex (NDX1) AI Stock Analysis

• Market Cap: $6.35B
• Dividend Yield: N/A
• Average Volume (3M): 667.29K
• Price to Earnings (P/E): 58.7
• Beta (1Y): 0.63
• Revenue Growth: 1.27%
• EPS Growth: 384.94%
• Country: DE
• Employees: 10,559
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.22
• Shares Outstanding: 236,450,360
• 10 Day Avg. Volume: 508,188
• 30 Day Avg. Volume: 667,294
• PEG Ratio: -2.82
• Price to Book (P/B): 2.59
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 9.67
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 11.24
• 1Y Price Target: $25.83
• Price Target Upside: -3.84% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: €29.00 ▲(7.97% Upside)

Nordex's overall stock score is driven by strong financial performance and positive technical indicators, reflecting a company on a positive trajectory. However, the high P/E ratio suggests overvaluation, and macroeconomic uncertainties present potential risks. The upgraded guidance and improved margins from the earnings call add to the positive outlook.

Positive Factors

Revenue Growth

Strong top-line growth indicates robust demand for Nordex's products and services, enhancing its market position and competitive edge in the renewable energy sector.

EBITDA Margin Improvement

Improved EBITDA margins reflect better cost management and operational efficiency, contributing to stronger financial health and profitability over the long term.

Cash Flow Generation

Strong cash flow generation supports Nordex's ability to invest in growth opportunities, manage debt, and enhance shareholder value over time.

Negative Factors

Profitability Challenges

Low net profit margins suggest ongoing challenges in achieving profitability, which could limit reinvestment capacity and shareholder returns if not addressed.

Macroeconomic Uncertainty

Geopolitical and macroeconomic uncertainties could disrupt supply chains and increase costs, posing risks to Nordex's operational stability and profitability.

Order Intake Uncertainty

Uncertainty in future order intake could affect revenue visibility and growth prospects, challenging Nordex's ability to sustain its market position.

Nordex Business Overview & Revenue Model

Company Description

Nordex 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 Money

Nordex 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 Financial Statement Overview

Summary

Nordex demonstrates strong revenue growth and improved cash flow generation, which are positive indicators of financial health. While profitability margins are improving, they remain relatively low, suggesting room for further enhancement. The balance sheet reflects a stable financial position with moderate leverage. Overall, the company is on a positive trajectory but needs to focus on improving profitability.

Income Statement

Nordex has shown a positive revenue growth rate of 18.5% in the TTM, indicating strong top-line growth. The gross profit margin has improved to 16.2%, reflecting better cost management. However, the net profit margin remains low at 0.4%, suggesting profitability challenges. The EBIT and EBITDA margins have improved but are still modest at 2.3% and 4.8%, respectively.

Balance Sheet

The debt-to-equity ratio has decreased to 0.55, indicating a moderate leverage position. Return on equity has improved to 3.0%, showing better utilization of equity. The equity ratio stands at 17.9%, reflecting a stable capital structure. Overall, the balance sheet shows improved financial stability.

Cash Flow

Operating cash flow has significantly increased, leading to a strong operating cash flow to net income ratio of 11.7. Free cash flow growth is positive at 9.1%, and the free cash flow to net income ratio is robust at 76.5%, indicating strong cash generation relative to net income.

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	13.10M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 26.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 26.86 is above the 20-day moving average (MA) of 26.22, above the 50-day MA of 23.79, and above the 200-day MA of 19.04, indicating a bullish trend. The MACD of 0.99 indicates Positive momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 31.68 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JUN3	73 Outperform	€3.08B	10.83	11.92%	2.50%	-1.50%	2.01%
KRN	72 Outperform	€3.82B	13.28	14.99%	2.09%	8.15%	16.17%
NDX1	71 Outperform	$6.35B	58.74	10.44%	―	1.27%	384.94%
G1A	65 Neutral	€9.91B	25.44	17.71%	2.02%	2.26%	6.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENR	62 Neutral	$92.82B	65.02	14.05%	―	13.38%	21.99%
DUE	60 Neutral	€1.36B	-72.89	-7.86%	3.63%	-18.21%	-137.62%