Friedrich Vorwerk Group SE (VH2) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: 0.35%
• Average Volume (3M): 50.90K
• Price to Earnings (P/E): 39.1
• Beta (1Y): 0.49
• Revenue Growth: 47.14%
• EPS Growth: 290.36%
• Country: DE
• Employees: 2,001
• Sector: Industrials
• Sector Strength: 94
• Industry: Oil & Gas Midstream
• EPS (TTM): N/A
• Shares Outstanding: 20,000,000
• 10 Day Avg. Volume: 78,979
• 30 Day Avg. Volume: 50,897
• PEG Ratio: 1.74
• Price to Book (P/B): 6.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.54
• 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: $65.00
• Price Target Upside: -25.38% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• 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 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

Friedrich 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	498.35M	373.36M	368.16M	279.07M	291.79M
Gross Profit	261.61M	167.97M	164.34M	158.73M	151.97M
EBITDA	75.20M	31.91M	48.08M	51.10M	47.34M
Net Income	35.77M	10.15M	17.14M	26.77M	30.56M
Balance Sheet
Total Assets	437.56M	311.28M	308.08M	290.46M	176.91M
Cash, Cash Equivalents and Short-Term Investments	174.65M	56.53M	45.88M	108.28M	45.25M
Total Debt	22.37M	16.53M	21.19M	27.99M	17.40M
Total Liabilities	232.55M	139.73M	144.90M	137.99M	113.31M
Stockholders Equity	205.04M	171.50M	162.81M	151.41M	63.60M
Cash Flow
Free Cash Flow	119.75M	19.35M	-42.37M	8.27M	12.92M
Operating Cash Flow	155.58M	50.42M	-10.26M	29.82M	33.32M
Investing Cash Flow	-35.60M	-29.47M	-32.56M	-28.46M	-20.40M
Financing Cash Flow	-1.87M	-10.31M	-19.58M	61.66M	-20.14M

Friedrich Vorwerk Group SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VH2	70 Outperform	$1.74B	39.09	22.02%	0.35%	47.14%	290.36%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
0E4K	―	€1.07B	30.59	1.96%	2.22%	―	―
0ZPV	―	€1.09B	12.64	9.13%	1.23%	―	―
0BQD	―	€1.69B	14.63	11.29%	2.70%	―	―
0G77	―	€1.46B	―	-8.65%	0.83%	―	―
BFSA	73 Outperform	€1.05B	17.68	6.97%	2.43%	7.96%	14.80%