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Friedrich Vorwerk Group SE (DE:VH2)
XETRA:VH2
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Friedrich Vorwerk Group SE (VH2) AI Stock Analysis

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DE:VH2

Friedrich Vorwerk Group SE

(XETRA:VH2)

Rating:70Outperform
Price Target:
€89.00
▲(2.18%Upside)
Friedrich Vorwerk Group SE's strong financial performance is the primary driver of its stock score, demonstrating solid revenue growth and profitability. However, the high P/E ratio and overbought technical indicators temper the overall score, suggesting caution for potential investors due to possible overvaluation and short-term correction risks.
Positive Factors
Financial Performance
VH2 continues to deliver growth well above market expectations and raises its FY25 EBITDA guidance by 24% at mid-point.
Order Backlog
The strong order backlog and project pipeline now provide good visibility into the coming 24 months.
Negative Factors
Liquidity
Net liquidity remains high but has decreased to €112m from €154m in 4Q24.

Friedrich Vorwerk Group SE (VH2) vs. iShares MSCI Germany ETF (EWG)

Friedrich Vorwerk Group SE Business Overview & Revenue Model

Company DescriptionFriedrich 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 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:Apr 30, 2025
(Q3-2024)
|
% Change Since: 46.12%|
Next Earnings Date:Aug 14, 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 demonstrates strong financial health with solid revenue growth, robust profitability, and healthy cash generation. The balance sheet indicates a stable financial position with manageable leverage, though capital expenditure fluctuations affect cash flow stability.
Income Statement
85
Very Positive
The company shows a strong revenue growth trajectory with a notable increase in total revenue from previous years. Gross Profit Margin and Net Profit Margin remain robust, reflecting efficient cost management and profitability. The EBIT and EBITDA margins are healthy, indicating strong operational performance and core profitability.
Balance Sheet
78
Positive
The balance sheet is strong with a favorable debt-to-equity ratio, suggesting a low leverage risk. The company's equity ratio is solid, indicating a strong equity position. However, a slight decrease in cash and cash equivalents compared to previous periods may require attention.
Cash Flow
80
Positive
Cash flow is healthy with a positive free cash flow growth rate, reflecting strong cash generation capability. The operating cash flow to net income ratio indicates efficient conversion of earnings to cash. However, fluctuations in capital expenditure impact free cash flow stability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue498.35M373.36M368.16M279.07M291.79M
Gross Profit261.61M167.97M164.34M158.73M151.97M
EBITDA75.20M31.91M48.08M51.10M47.34M
Net Income35.77M10.15M17.14M26.77M30.56M
Balance Sheet
Total Assets437.56M311.28M308.08M290.46M176.91M
Cash, Cash Equivalents and Short-Term Investments174.65M56.53M45.88M108.28M45.25M
Total Debt22.37M16.53M21.19M27.99M17.40M
Total Liabilities232.55M139.73M144.90M137.99M113.31M
Stockholders Equity205.04M171.50M162.81M151.41M63.60M
Cash Flow
Free Cash Flow119.75M19.35M-42.37M8.27M12.92M
Operating Cash Flow155.58M50.42M-10.26M29.82M33.32M
Investing Cash Flow-35.60M-29.47M-32.56M-28.46M-20.40M
Financing Cash Flow-1.87M-10.31M-19.58M61.66M-20.14M

Friedrich Vorwerk Group SE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price87.10
Price Trends
50DMA
61.92
Positive
100DMA
57.10
Positive
200DMA
43.34
Positive
Market Momentum
MACD
6.23
Negative
RSI
77.67
Negative
STOCH
85.89
Negative
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 87.1 is above the 20-day moving average (MA) of 66.73, above the 50-day MA of 61.92, and above the 200-day MA of 43.34, indicating a bullish trend. The MACD of 6.23 indicates Negative momentum. The RSI at 77.67 is Negative, neither overbought nor oversold. The STOCH value of 85.89 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$1.74B39.0922.02%0.35%47.14%290.36%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
€1.07B30.591.96%2.22%
€1.09B12.649.13%1.23%
€1.69B14.6311.29%2.70%
€1.46B-8.65%0.83%
73
Outperform
€1.05B17.686.97%2.43%7.96%14.80%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:VH2
Friedrich Vorwerk Group SE
87.10
67.95
354.90%
GB:0E4K
Deutz AG
7.70
2.60
50.98%
GB:0ZPV
Jenoptik
19.13
-6.53
-25.45%
GB:0BQD
KSB AG
980.00
311.14
46.52%
GB:0G77
Salzgitter
24.28
7.76
46.97%
DE:BFSA
Befesa S.A.
26.30
-2.02
-7.13%
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.Date of analysis: Jul 18, 2025