Friedrich Vorwerk Group SE (VH2) AI Stock Analysis

• Market Cap: €1.61B
• Dividend Yield: 0.37%
• Average Volume (3M): 56.81K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.34
• Revenue Growth: 51.91%
• EPS Growth: 151.97%
• Country: DE
• Employees: 2,001
• Sector: Industrials
• Sector Strength: 72
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.45
• Shares Outstanding: 20,000,000
• 10 Day Avg. Volume: 116,718
• 30 Day Avg. Volume: 56,813
• PEG Ratio: 0.06
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 1.10
• P/FCF Ratio: 4.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €89.00
• Price Target Upside: 10.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 4.11
• Revenue Forecast (FY): €791.53M

• Rating: 78 Outperform
• Price Target: €109.00 ▲(35.57% Upside)
• Action: Upgraded Date: 01/27/26
• Date: Action: Upgraded 01/27/26

The score is driven primarily by strong financial performance and a constructive technical trend, reinforced by an upbeat earnings call with raised guidance and strong order momentum. The main offsets are a relatively full valuation and some execution/seasonality risks highlighted in the call, along with softer recent free cash flow growth.

Positive Factors

Revenue & Margin Strength

Sustained revenue growth with high gross margins and improving net profitability indicate durable operational efficiency and pricing power. Over 2–6 months this supports reinvestment in R&D and project delivery, strengthening competitive position in energy and water infrastructure markets.

Conservative Balance Sheet

Very low leverage and strong return on equity provide long-term financial flexibility to fund capex, bid on large infrastructure projects, and pursue selective M&A without stressing liquidity. This resilience reduces refinancing risk across economic cycles.

Large Order Backlog & Pipeline

A >€1bn backlog and rapid project volume growth underpin multi-period revenue visibility and secular expansion into hydrogen, district heating and CO2 transport. This durable backlog supports utilization, planning and scaling of systems and services over the next several quarters.

Negative Factors

Declining Free Cash Flow Growth

A notable drop in free cash flow growth can strain the company’s ability to fund working capital for large projects and capex without tapping external financing. Over months this may limit deployment speed on new contracts and pressure liquidity metrics despite strong net income conversion.

Project Execution Risk

Regulatory and permitting delays on major projects directly delay revenue recognition, extend cash conversion cycles, and risk penalties or cost overruns. For an infrastructure-focused firm, persistent execution hurdles can materially affect mid-term delivery schedules and margins.

Backlog Quality & JV Shift

A shift from direct contracts to joint-venture structures can reduce revenue visibility, dilute margins and delay cash receipts as partners share delivery and payments. This structural change weakens near-term earnings predictability and cash conversion over the coming quarters.

Friedrich Vorwerk Group SE Business Overview & Revenue Model

Company Description

Friedrich Vorwerk Group SE provides various solutions for transformation and transportation of energy in Germany and Europe. It operates through four segments: Natural Gas, Electricity, Clean Hydrogen, and Adjacent Opportunities. The Natural Gas segment comprises infrastructure services and product solutions for the transport and conversion of raw natural gas into treated natural gas; and engages in transporting the natural gas through high-pressure pipelines to processing in filtering and separation plants, compressor stations, storage and measurement systems, LNG terminals, and gas pressure control and measurement systems. The Electricity segment provides infrastructure for the underground transport and conversion of electricity that is generated from non-fossil energy sources, such as wind, solar, hydro, and regenerative resources. This segment is involved in landing offshore electricity and installing high-voltage underground cables through which electricity is transported to transmission networks. The Clean Hydrogen segment provides product solutions and infrastructure services for the conversion of energy from energy sources into hydrogen, and its transportation to consumers, which is done through conversion of renewable energy by electrolysis; and processing and transportation of the clean hydrogen produced through storage systems, compressor stations, pipelines, and gas pressure control and measurement systems. The Adjacent Opportunities segment provides technologies, such as the treatment and cleaning of biogenic and synthetic gases; heat extraction technologies used in district heating; solutions for the transportation of drinking and wastewater; and specialty solutions for the chemical and petrochemical industry. Friedrich Vorwerk Group SE was founded in 1962 and is headquartered in Tostedt, Germany.

How the Company Makes Money

The 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 Financial Statement Overview

Summary

Strong income statement performance (score 85) with solid revenue growth and improving margins, supported by a stable, low-leverage balance sheet (score 78). Cash flow is the main constraint (score 70) due to a recent decline in free cash flow growth despite healthy cash conversion.

Income Statement

Friedrich Vorwerk Group SE has demonstrated strong revenue growth with a TTM increase of 9.39% and consistent improvement in profitability metrics. The gross profit margin stands at 52.88%, and the net profit margin has improved to 8.97% in the TTM period, indicating efficient cost management. EBIT and EBITDA margins have also shown positive trends, reflecting operational efficiency. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The company's balance sheet is characterized by a low debt-to-equity ratio of 0.088, suggesting prudent financial leverage. The return on equity is strong at 26.04%, indicating effective use of equity capital to generate profits. The equity ratio is healthy, reflecting a solid capital structure. However, the slight increase in total debt over the periods warrants monitoring. Overall, the balance sheet is stable with a strong equity position.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 13.62% in the TTM period, which could be a concern. However, the operating cash flow to net income ratio is strong at 1.29, indicating good cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.70. While cash flow generation is solid, the recent decline in free cash flow growth suggests potential challenges in cash management.

Breakdown	TTM	Mar 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	664.31M	498.35M	373.36M	368.16M	279.07M	291.79M
Gross Profit	360.15M	261.61M	167.97M	164.34M	158.73M	151.97M
EBITDA	130.93M	75.20M	31.91M	48.08M	51.10M	47.34M
Net Income	70.80M	35.77M	10.15M	17.14M	26.77M	30.56M
Balance Sheet
Total Assets	466.25M	437.56M	311.28M	308.08M	290.46M	176.91M
Cash, Cash Equivalents and Short-Term Investments	123.90M	174.65M	56.53M	45.88M	108.28M	45.25M
Total Debt	18.95M	22.37M	16.53M	21.19M	27.99M	17.40M
Total Liabilities	210.59M	232.55M	139.73M	144.90M	137.99M	113.31M
Stockholders Equity	256.21M	205.04M	171.50M	162.81M	151.41M	63.60M
Cash Flow
Free Cash Flow	92.32M	119.75M	19.35M	-42.37M	8.27M	12.92M
Operating Cash Flow	136.27M	155.58M	50.42M	-10.26M	29.82M	33.32M
Investing Cash Flow	-49.71M	-35.60M	-29.47M	-32.56M	-28.46M	-20.40M
Financing Cash Flow	-14.66M	-1.87M	-10.31M	-19.58M	61.66M	-20.14M

Friedrich Vorwerk Group SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.40
• 50DMA: Negative
• 100DMA: Negative
• 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:VH2, the sentiment is Negative. The current price of 80.4 is below the 20-day moving average (MA) of 84.63, below the 50-day MA of 84.78, and above the 200-day MA of 78.79, indicating a neutral trend. The MACD of -1.51 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 36.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:VH2.

Friedrich Vorwerk Group SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VH2	78 Outperform	€1.61B	22.71	26.08%	0.37%	51.91%	151.97%
JEN	76 Outperform	€1.61B	22.18	7.17%	1.97%	-5.27%	-13.70%
KSB	76 Outperform	€1.95B	17.11	11.18%	2.76%	4.20%	-20.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BFSA	63 Neutral	€1.36B	16.92	10.98%	2.24%	2.08%	56.30%
DEZ	62 Neutral	€1.91B	46.35	4.34%	2.03%	9.79%	-31.93%
SZG	57 Neutral	€3.28B	-14.74	-4.47%	0.51%	-9.52%	-4.21%