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Friedrich Vorwerk Group SE (DE:VH2)
:VH2
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Friedrich Vorwerk Group SE
(OTC:VH2)
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Rating:70Outperform
Price Target:
€84.00
▼(-16.50% Downside)
Friedrich Vorwerk Group SE's overall stock score is driven by strong financial performance and positive earnings call insights, indicating robust growth prospects. However, technical analysis reveals bearish trends, and valuation metrics suggest moderate attractiveness. Potential project delays and seasonal fluctuations are risks to consider.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong market demand and effective business strategies, positioning the company for continued expansion.
Order Volume Growth
The increase in project volume reflects robust business development efforts and strengthens the company's future revenue pipeline.
Innovative Product Development
Innovations like the PX2 welding system enhance competitive advantage and open new market opportunities, supporting long-term growth.
Negative Factors
Potential Project Delays
Project delays can impact revenue and profitability, highlighting risks in project execution and regulatory challenges.
Seasonal Revenue Fluctuations
Seasonal fluctuations can lead to unpredictable earnings, affecting cash flow and financial planning.
Order Backlog Decline
A decline in order backlog may indicate future revenue challenges, affecting long-term growth prospects.
Friedrich Vorwerk Group SE (VH2) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.84B
Dividend Yield0.36%
Average Volume (3M)56.81K
Price to Earnings (P/E)33.7
Beta (1Y)0.64
Revenue Growth51.91%
EPS Growth151.97%
CountryDE
Employees2,001
SectorIndustrials
Sector Strength72
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)1.45
Shares Outstanding20,000,000
10 Day Avg. Volume116,718
30 Day Avg. Volume56,813
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)2.66
Price to Sales (P/S)1.10
P/FCF Ratio4.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€64.41Price Target Upside-35.98% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Friedrich Vorwerk Group SE Business Overview & Revenue Model
Company DescriptionFriedrich Vorwerk Group SE (VH2) is a prominent international company focused on the development and production of innovative technologies for energy and water management. Operating primarily within the sectors of renewable energy, water treatment, and environmental engineering, the company offers a range of products and services designed to enhance sustainability and efficiency. Core offerings include advanced water filtration systems, energy management solutions, and integrated technological systems that support both industrial and municipal applications.
How the Company Makes MoneyThe Friedrich Vorwerk Group SE generates revenue through multiple streams, primarily by selling its proprietary technologies and systems to various sectors including municipal utilities, industrial manufacturers, and commercial enterprises. Key revenue streams include direct sales of water treatment systems, energy solutions, and ongoing service contracts for maintenance and support. The company also benefits from strategic partnerships with governmental and non-governmental organizations, which facilitate large-scale projects and public sector contracts. Additionally, VH2 invests in research and development to continuously innovate its product line, thus attracting new clients and retaining existing ones through enhanced service offerings.
Friedrich Vorwerk Group SE Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with record-breaking revenue and profitability. The company showed significant growth in order volume and successful recruitment. However, potential delays in major projects and seasonal revenue fluctuations present challenges.Q3-2025 Updates
Positive Updates
Record-Breaking Quarterly Revenue
Friedrich Vorwerk achieved quarterly revenue of over EUR 200 million for the first time in its history, representing a growth of 39% compared to the previous year.
Strong Profitability
The EBITDA margin improved to 25.4% in Q3, a 4 percentage point increase from the previous quarter and an 8 percentage point increase compared to the previous year.
Significant Growth in Order Volume
The total project volume acquired rose by 45% to EUR 886 million in the first 9 months of 2025.
Successful Employee Recruitment
The company successfully recruited over 100 new employees in Q3, including a small M&A transaction, contributing significantly to their growth.
Innovative Welding System
The newly developed PX2 welding system showed high productivity and low defect rates, opening new markets in Croatia and Turkey.
Negative Updates
Potential Delays in Anord Project
There are expected delays in the Anord project due to a lack of building clearance and missing permits, impacting revenue expectations.
Order Backlog Decline
The order backlog declined slightly to EUR 1.1 billion, primarily due to a shift in order structure toward joint ventures.
Seasonal Revenue Fluctuations
Q4 is expected to be weaker in terms of revenue due to usual seasonality, weather conditions, and fewer working days.
Company Guidance
During the conference call following the Q3 2025 results of Friedrich Vorwerk Group SE, the company provided substantial guidance and insights into its future prospects. The CEO, Torben Kleinfeldt, highlighted the company's robust growth trajectory, with a notable order backlog exceeding EUR 1 billion and a strong focus on hydrogen projects. CFO Tim Hameister discussed the financial performance, emphasizing record quarterly revenue surpassing EUR 200 million, marking a 39% growth, and an impressive EBITDA margin increase to 25.4%. The company raised its guidance, projecting 2025 revenues between EUR 650 million and EUR 680 million with an EBITDA margin of 20% to 22%. Additionally, the total project volume acquired rose by 45% to EUR 886 million in the first nine months, positioning the company for continued growth in 2026 and 2027. The call also touched upon significant projects in pipeline construction and district heating, alongside strategic initiatives in CO2 transport and innovative welding systems, underscoring Friedrich Vorwerk's commitment to leveraging its expertise in energy infrastructure to drive future success.Friedrich Vorwerk Group SE Financial Statement Overview
Summary
Friedrich Vorwerk Group SE exhibits strong financial health with impressive revenue growth and profitability metrics. The balance sheet is stable with low leverage, and cash flow generation is robust. Opportunities exist to enhance cost efficiency and asset utilization.Income Statement
Friedrich Vorwerk Group SE has demonstrated strong revenue growth with a 9.49% increase in TTM, supported by healthy gross and net profit margins of 51.84% and 7.71% respectively. The EBIT and EBITDA margins are also robust at 12.10% and 16.04%, indicating efficient operations. However, the net profit margin is slightly lower compared to historical performance, suggesting room for improvement in cost management.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.10, indicating prudent financial leverage. The return on equity is strong at 21.69%, reflecting effective use of shareholder funds. The equity ratio of 54.46% suggests a stable capital structure, though there is potential to optimize asset utilization further.78
Positive
Cash Flow
Cash flow performance is commendable with a 29.28% growth in free cash flow, highlighting improved cash generation capabilities. The operating cash flow to net income ratio of 0.94 and free cash flow to net income ratio of 0.70 indicate strong cash conversion. Continued focus on sustaining cash flow growth will be beneficial.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 607.31M | 498.35M | 373.36M | 368.16M | 279.07M | 291.79M |
| Gross Profit | 321.18M | 261.61M | 167.97M | 164.34M | 158.73M | 151.97M |
| EBITDA | 106.62M | 75.20M | 31.91M | 48.08M | 51.10M | 47.34M |
| Net Income | 54.51M | 35.77M | 10.15M | 17.14M | 26.77M | 30.56M |
Balance Sheet | ||||||
| Total Assets | 417.03M | 437.56M | 311.28M | 308.08M | 290.46M | 176.91M |
| Cash, Cash Equivalents and Short-Term Investments | 101.58M | 174.65M | 56.53M | 45.88M | 108.28M | 45.25M |
| Total Debt | 19.90M | 22.37M | 16.53M | 21.19M | 27.99M | 17.40M |
| Total Liabilities | 189.97M | 232.55M | 139.73M | 144.90M | 137.99M | 113.31M |
| Stockholders Equity | 227.14M | 205.04M | 171.50M | 162.81M | 151.41M | 63.60M |
Cash Flow | ||||||
| Free Cash Flow | 106.87M | 119.75M | 19.35M | -42.37M | 8.27M | 12.92M |
| Operating Cash Flow | 152.04M | 155.58M | 50.42M | -10.26M | 29.82M | 33.32M |
| Investing Cash Flow | -45.48M | -35.60M | -29.47M | -32.56M | -28.46M | -20.40M |
| Financing Cash Flow | -13.15M | -1.87M | -10.31M | -19.58M | 61.66M | -20.14M |
Friedrich Vorwerk Group SE Technical Analysis
Positive
100.60
Price Trends
88.19
Negative
83.14
Positive
69.40
Positive
Market Momentum
-2.12
Positive
49.84
Neutral
64.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:VH2, the sentiment is Positive. The current price of 100.6 is above the 20-day moving average (MA) of 84.05, above the 50-day MA of 88.19, and above the 200-day MA of 69.40, indicating a neutral trend. The MACD of -2.12 indicates Positive momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 64.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:VH2.
Friedrich Vorwerk Group SE Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | €1.63B | 13.99 | 11.18% | 2.69% | 4.20% | -20.71% | |
72 Outperform | €1.09B | 14.09 | 7.17% | 1.96% | -5.27% | -13.70% | |
72 Outperform | €1.10B | 12.75 | 10.98% | 2.30% | 2.08% | 56.30% | |
70 Outperform | €1.84B | 33.69 | 26.08% | 0.36% | 51.91% | 151.97% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | €1.21B | 28.70 | 4.34% | 2.12% | 9.79% | -31.93% | |
55 Neutral | €1.67B | -3.57 | -4.47% | 0.53% | -9.52% | -4.21% |
* Industrials Sector Average
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Friedrich Vorwerk Group SE
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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.