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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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Select Model
Rating:74Outperform
Price Target:
€103.00
▲(2.39% Upside)
Friedrich Vorwerk Group SE's strong financial performance is the most significant factor, supported by robust revenue growth and stable cash flow. Technical analysis shows a positive trend, though valuation metrics suggest the stock is relatively expensive. The absence of earnings call data and corporate events limits additional insights.
Positive Factors
Revenue Growth
Strong revenue growth indicates expanding market presence and successful execution of strategic initiatives, enhancing long-term prospects.
Cash Flow Generation
Robust cash flow growth supports reinvestment in business operations and strategic initiatives, ensuring financial stability and resilience.
Balance Sheet Health
A low debt-to-equity ratio reflects prudent financial management, providing flexibility for future investments and growth opportunities.
Negative Factors
Net Profit Margin
A lower net profit margin compared to historical levels suggests potential inefficiencies and the need for improved cost management.
Dividend Yield
A low dividend yield may limit attractiveness to income-focused investors, potentially impacting shareholder satisfaction and stock appeal.
Asset Utilization
Inefficient asset utilization can hinder operational efficiency and profitability, necessitating strategic improvements for better returns.
Friedrich Vorwerk Group SE (VH2) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.84B
Dividend Yield0.33%
Average Volume (3M)56.81K
Price to Earnings (P/E)33.7
Beta (1Y)0.64
Revenue Growth51.13%
EPS Growth229.69%
CountryDE
Employees2,001
SectorIndustrials
Sector Strength72
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.98
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 is a German-based company specializing in the energy infrastructure sector. It provides comprehensive solutions for the transportation and transformation of energy, focusing primarily on natural gas, electricity, and hydrogen. The company's services include engineering, construction, and maintenance of energy networks, as well as the development of innovative technologies aimed at enhancing the efficiency and sustainability of energy systems.
How the Company Makes MoneyFriedrich Vorwerk Group SE generates revenue through its extensive range of services in the energy infrastructure industry. The company's primary revenue streams include contracts for the construction and maintenance of pipelines and energy networks, which are often secured through long-term agreements with utility companies and government agencies. Additionally, Friedrich Vorwerk is involved in the development and implementation of technological solutions that improve energy efficiency, offering consulting and engineering services that further contribute to its earnings. Strategic partnerships with key players in the energy sector enhance its market presence and access to new projects, while investments in research and development enable the company to remain at the forefront of technological advancements in energy infrastructure.
Friedrich Vorwerk Group SE Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call presents a positive outlook with strong revenue growth, improved profitability, and successful recruitment efforts. The company has maintained a high order backlog and is involved in significant projects, although there is some uncertainty regarding future government policies and weather-dependent project execution.Q3-2024 Updates
Positive Updates
Revenue Growth
Revenues increased by 32% in Q3 to EUR 145 million, with total revenue for the first 9 months reaching EUR 339 million, a growth of 23%.
Profitability and EBITDA
EBITDA more than tripled from EUR 6.8 million to over EUR 25 million in Q3, with an EBITDA margin improvement from 2.1% to 13.7%.
Order Backlog and Selectivity
The order backlog remains high at EUR 1.2 billion, allowing the company to be selective in acquiring new projects.
Recruitment Success
Employee growth exceeded the annual target of 10%, reaching a 14% increase by the end of Q3.
Project Developments
Friedrich Vorwerk is involved in significant projects like the A-Nord and the newly developed Etzel-Wardenburg pipeline project.
Negative Updates
Uncertainty in Future Projects
Potential changes in government policies could impact future projects, especially the CO2 pipeline grid.
Dependency on Weather Conditions
Project execution, particularly grid projects, is highly dependent on favorable weather conditions.
Company Guidance
During the VH2.DE Q3 2024 earnings call, the company provided optimistic guidance, highlighting significant achievements and future expectations. They reported a 32% increase in Q3 revenues to EUR 145 million, driven by their flagship project, A-Nord. They achieved a remarkable 13.7% EBIT margin, with Q3 EBITDA more than tripling from EUR 6.8 million to over EUR 25 million. For the first nine months, revenue reached EUR 339 million, a 23% increase, resulting in a 14.7% EBITDA margin. The company raised its 2024 full-year guidance, expecting revenues between EUR 430 million and EUR 460 million and an EBITDA margin of 14% to 15%. CEO Torben Kleinfeldt emphasized a strong order backlog and a successful recruiting strategy that resulted in 14% employee growth, surpassing their 10% target. The company remains focused on securing new projects, particularly in energy infrastructure, while maintaining strong profitability and exploring M&A opportunities. Overall, the outlook for Friedrich Vorwerk Group remains robust, with ambitions to reach EUR 1 billion in sales by the early 2030s.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
Neutral
100.60
Price Trends
83.38
Positive
78.95
Positive
64.38
Positive
Market Momentum
1.59
Positive
42.37
Neutral
5.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:VH2, the sentiment is Neutral. The current price of 100.6 is above the 20-day moving average (MA) of 93.18, above the 50-day MA of 83.38, and above the 200-day MA of 64.38, indicating a neutral trend. The MACD of 1.59 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 5.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | €1.09B | 14.09 | 7.86% | 2.09% | -2.59% | -3.21% | |
74 Outperform | €1.84B | 33.69 | 26.08% | 0.33% | 51.13% | 229.69% | |
73 Outperform | €1.63B | 13.99 | 11.18% | 2.86% | 4.20% | -20.71% | |
72 Outperform | €1.10B | 12.75 | 10.98% | 2.38% | 2.08% | 56.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | €1.21B | 29.75 | 4.31% | 2.13% | 9.79% | -32.89% | |
50 Neutral | €1.67B | -3.57 | -9.21% | 0.71% | -7.50% | -3837.01% |
* Industrials Sector Average
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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.