Orsted (DNNGY) AI Stock Analysis

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Orsted

(OTC:DNNGY)

52Neutral

The overall stock score of 52 reflects a company facing significant challenges but with some potential for improvement. The key concerns include declining revenue, high leverage, and negative earnings, while technical indicators and strategic milestones provide some stability. The mixed signals from the earnings call further contribute to a cautious outlook.

Orsted (DNNGY) vs. S&P 500 (SPY)

Market Cap

$16.21B

Dividend YieldN/A

Average Volume (3M)3.75K

Price to Earnings (P/E)21.1

Beta (1Y)0.09

Revenue Growth-14.89%

EPS Growth96.53%

CountryUS

Employees8,278

SectorUtilities

Sector Strength88

IndustryRenewable Utilities

Share Statistics

EPS (TTM)-0.08

Shares Outstanding1,261,155,600

10 Day Avg. Volume11,255

30 Day Avg. Volume3,751

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.02

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusHold

Number of Analyst Covering1

Orsted Business Overview & Revenue Model

Company DescriptionØrsted (DNNGY) is a Danish multinational energy company primarily engaged in the development and operation of renewable energy solutions. The company is a global leader in offshore wind power and also invests in onshore wind and solar power solutions, bioenergy, and energy storage. Ørsted's mission is to create a world that runs entirely on green energy, and it operates across Europe, North America, and parts of Asia-Pacific.

How the Company Makes MoneyØrsted makes money through the generation and sale of renewable energy, primarily from its offshore wind farms, which are the largest contributors to its revenue. The company enters into long-term power purchase agreements (PPAs) with utilities and corporations, providing a stable revenue stream. Ørsted also earns revenue from its onshore wind and solar projects, as well as from its bioenergy and energy storage solutions. Additionally, the company benefits from government incentives and subsidies aimed at promoting renewable energy. Strategic partnerships and joint ventures with other energy firms and investors help Ørsted expand its project portfolio and financial base.

Orsted Financial Statement Overview

Summary

Orsted's financial performance shows a mix of strengths and concerns. Revenue and profitability have declined, with a negative net profit margin due to a net loss of -206 million. The balance sheet reveals high leverage with a debt-to-equity ratio of 1.16, and negative ROE due to net losses. The cash flow statement indicates ongoing challenges with negative free cash flows despite positive operating cash flow, reflecting the company's resilience.

Income Statement

Neutral

The company has faced significant challenges in recent years, with declining revenue and profitability. The gross profit margin in 2024 was 38.86%, but the net profit margin was negative due to a net loss of -206 million. Revenue decreased from 69.08 billion in 2023 to 58.83 billion in 2024, indicating a negative growth rate of -14.78%. The company also struggled with negative EBIT and EBITDA in 2023, though these improved in 2024.

Balance Sheet

Neutral

The balance sheet shows a high level of debt relative to equity, with a debt-to-equity ratio of 1.16 in 2024. However, the equity ratio is reasonably stable at 27.81%, indicating a solid base of stockholders' equity. ROE is negative due to net losses, which remains a concern for investors.

Cash Flow

Neutral

The cash flow statement reflects substantial capital expenditures leading to negative free cash flows. Operating cash flow to net income ratio is difficult to assess due to negative net income. The company shows resilience with positive operating cash flow, but the free cash flow to net income ratio remains negative, highlighting ongoing cash flow challenges.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
58.83B	69.08B	126.09B	69.14B	37.10B
	Gross Profit
22.87B	22.45B	28.93B	16.03B	11.32B
	EBIT
6.17B	-17.85B	13.37B	8.04B	9.01B
	EBITDA
16.84B	-7.70B	27.34B	23.84B	27.49B
	Net Income Common Stockholders
-206.00M	-20.51B	15.13B	10.96B	15.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.94B	39.18B	38.13B	14.83B	29.87B
	Total Assets
298.79B	281.14B	314.14B	270.38B	196.72B
	Total Debt
96.62B	88.05B	71.55B	58.53B	41.82B
	Net Debt
73.81B	78.38B	57.84B	49.90B	36.38B
	Total Liabilities
205.30B	203.34B	218.61B	185.25B	99.39B
	Stockholders Equity
83.09B	75.89B	91.54B	82.06B	94.61B
Cash Flow		Free Cash Flow
-24.30B	-9.67B	-21.08B	-22.42B	-10.49B
	Operating Cash Flow
18.36B	28.53B	11.92B	12.15B	16.47B
	Investing Cash Flow
-21.76B	-34.73B	-17.91B	-12.59B	-16.56B
	Financing Cash Flow
15.84B	265.00M	13.79B	3.39B	-2.13B

Orsted Technical Analysis

Technical Analysis Sentiment

Negative

Last Price12.55

Price Trends

50DMA

14.50

Negative

100DMA

15.18

Negative

200DMA

17.63

Negative

Market Momentum

MACD

0.02

Positive

RSI

39.82

Neutral

STOCH

2.69

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNNGY, the sentiment is Negative. The current price of 12.55 is below the 20-day moving average (MA) of 14.90, below the 50-day MA of 14.50, and below the 200-day MA of 17.63, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 39.82 is Neutral, neither overbought nor oversold. The STOCH value of 2.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNNGY.

Orsted Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWEN.A	74 Outperform	$5.61B	35.17	4.23%	6.74%	1.15%	10.99%
CWEN	73 Outperform	$5.47B	36.66	4.23%	6.00%	1.15%	10.99%
BEPC	70 Outperform	$9.03B	30.80	6.15%	5.87%	-8.26%	―
Sector *	65 Neutral	$11.78B	15.57	6.20%	4.58%	5.53%	-8.93%
RNW	62 Neutral	$2.15B	85.55	2.00%	―	-1.77%	-41.65%
DNNGY	52 Neutral	$16.21B	21.10	-1.25%	―	-14.89%	96.53%
SMR	46 Neutral	$4.56B	―	-38.37%	―	62.41%	-85.81%

* Utilities Sector Average

Performance Comparison

DNNGY

Orsted

12.55

-6.69

-34.77%

CWEN

Clearway Energy

27.55

6.04

28.08%

CWEN.A

Clearway Energy

25.81

5.85

29.31%

BEPC

Brookfield Renewable

25.93

4.61

21.62%

SMR

NuScale Power

14.85

9.58

181.78%

RNW

ReNew Energy Global

5.79

0.18

3.21%

Orsted Earnings Call Summary

Earnings Call Date: Feb 6, 2025 | % Change Since: -4.20% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Ørsted's strong EBITDA performance, safety improvements, and strategic milestones in renewable energy projects. However, significant impairments in the U.S. offshore portfolio, pressures on credit metrics, and a reduction in future investments were noted as substantial challenges.

Highlights

Strong EBITDA Performance

Ørsted achieved an EBITDA of DKK24.8 billion for the full year 2024, in line with guidance of DKK24 billion to DKK26 billion, representing an increase of DKK700 million compared to last year.

Record Cancellation Fee Reversal

Ørsted managed to settle a number of contracts, leading to a total net reversal of cancellation fees of DKK7.3 billion, resulting in one of the highest EBITDA levels in the company's history.

Safety Improvements

The company reduced its total recordable injury rate for the second consecutive year in 2024, highlighting a successful focus on safety.

Significant Renewable Capacity Commissioned

In 2024, Ørsted commissioned around 2.4 gigawatts of total renewable capacity across offshore and onshore assets.

Final Investment Decision on Baltica 2

Ørsted took the final investment decision on the Baltica 2 project in Poland, locking in the majority of the project's CapEx.

UK Offshore Wind Auction Success

Ørsted was awarded 3.5 gigawatts of offshore wind capacity in the UK allocation round six.

Lowlights

U.S. Offshore Wind Project Impairments

Ørsted recorded total impairments of DKK15.6 billion for the year, primarily related to adverse developments in the U.S. offshore wind portfolio.

Credit Metrics Under Pressure

The company's credit metrics were pressured due to recent adverse developments in the U.S. offshore portfolio, affecting short-term financial stability.

Lowered Investment Plans

Ørsted reduced its projected investments towards 2030 by approximately 25% compared to previous ambitions.

Challenges with Sunrise Wind Project

The Sunrise Wind project faced higher costs and schedule delays, impacting the business case.

Company Guidance

During the Ørsted Q4 2024 Earnings Call, newly appointed CEO Rasmus Errboe outlined several strategic adjustments, including a projected reduction in investments of approximately 25% towards 2030, emphasizing a disciplined approach to capital allocation. The company achieved a full-year EBITDA of DKK24.8 billion, aligning with their guidance of DKK24 billion to DKK26 billion. Total group EBITDA, including new partnerships and cancellation fees, reached DKK32 billion, marking one of the highest levels in the company’s history. They recorded total impairments of DKK15.6 billion, mainly due to developments in their U.S. offshore wind portfolio. Ørsted has commissioned 2.4 gigawatts of renewable capacity this year and plans to focus future investments on financially attractive offshore wind opportunities. Despite challenges, Ørsted remains committed to maintaining a solid investment-grade credit rating and projects an EBITDA growth to DKK29 billion to DKK33 billion by 2026. The company also reported a reduction in their total recordable injury rate for the second consecutive year.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.