Orsted (DNNGY) AI Stock Analysis

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Orsted

(OTC:DNNGY)

Rating:57Neutral

Price Target:

$11.50

▲(13.86% Upside)

Orsted's overall stock score is driven by mixed financial performance, with significant cash flow challenges. Technical analysis indicates bearish momentum, while valuation is moderate. The earnings call provides a cautiously optimistic outlook, balancing operational successes with financing challenges.

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

Market Cap

$12.71B

Dividend YieldN/A

Average Volume (3M)39.45K

Price to Earnings (P/E)14.3

Beta (1Y)-0.12

Revenue Growth15.65%

EPS GrowthN/A

CountryUS

Employees8,251

SectorUtilities

Sector Strength65

IndustryRenewable Utilities

Share Statistics

EPS (TTM)0.38

Shares Outstanding1,261,155,600

10 Day Avg. Volume69,748

30 Day Avg. Volume39,455

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.61

Enterprise Value/Revenue0.52

Enterprise Value/Gross Profit1.36

Enterprise Value/Ebitda1.49

Forecast

1Y Price Target

$11.50

Price Target Upside13.86% Upside

Rating ConsensusHold

Number of Analyst Covering0

Orsted Business Overview & Revenue Model

Company DescriptionØrsted A/S, together with its subsidiaries, develops, constructs, owns, and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants. It operates through Offshore, Onshore, and Markets & Bioenergy segments. The Offshore segment develops, constructs, owns, and operates offshore wind farms in the United Kingdom, Germany, Denmark, the Netherlands, the United States, Taiwan, Japan, and South Korea. The Onshore segment develops, owns, and operates onshore wind and solar farms in the United States. The Markets & Bioenergy segment engages in the generation of heat and power from combined heat and power plants in Denmark; sells power and gas in the wholesale and B2B markets; and optimizes and hedges energy portfolio. The company was formerly known as DONG Energy A/S and changed its name to Ørsted A/S in November 2017. Ørsted A/S was founded in 1972 and is headquartered in Fredericia, Denmark.

How the Company Makes MoneyØrsted generates revenue primarily through the sale of electricity from its renewable energy projects, including offshore and onshore wind farms and solar installations. The company enters into long-term power purchase agreements (PPAs) with utility companies and large-scale energy consumers, ensuring a stable income stream. Additionally, Ørsted earns revenue from energy trading activities, optimizing the sale of electricity in various markets. The company also invests in energy storage solutions, which can provide ancillary services and enhance grid stability, further contributing to its revenue. Strategic partnerships with other energy firms and governments for joint projects and research initiatives play a significant role in expanding Ørsted's market reach and financial performance.

Orsted Earnings Call Summary

Earnings Call Date:Aug 11, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Neutral

The earnings call highlights significant progress in operational performance and construction milestones, supported by strong financial backing. However, challenges with project financing and increased funding requirements present notable concerns. The company's strategic measures and support from shareholders provide a positive outlook, but the balance of highlights and lowlights results in a cautious sentiment.

Q2-2025 Updates

Positive Updates

Strong Operational Performance

EBITDA for the first half of 2025 amounted to DKK 13.9 billion, and the company remains on track to deliver the full-year EBITDA guidance of DKK 25 billion to DKK 28 billion despite lower wind speeds.

Solid Progress in Construction Portfolio

Achieved first power on Greater Changhua 2b and 4 in Taiwan, completed turbine foundation installation on Revolution Wind in the U.S., and initiated turbine foundation installation at Sunrise Wind.

High Offshore Portfolio Availability

First-half availability across the offshore wind portfolio was 92%, a significant increase compared to the same period last year.

Successful Project Financing

Closed project financing for Greater Changhua 2, raising approximately DKK 20 billion.

Support from Majority Shareholder

Announced a fully underwritten rights issue of DKK 60 billion supported by the Danish State.

Negative Updates

Increased Total Recordable Injury Rate

The Total Recordable Injury Rate increased to 2.7, slightly above the target of 2.5.

Challenges with Sunrise Wind Financing

Discontinued the divestment and associated nonrecourse project financing process for Sunrise Wind due to increased perceived risks in the U.S. offshore wind market.

Incremental Funding Requirement

The discontinuation of the Sunrise Wind financing process led to an incremental funding requirement of around DKK 40 billion across 2025 to 2027.

Delay in Greater Changhua 2b and 4

Updated installation schedule due to a slow start to array cable installation and delivery delays of turbine blades, though no material financial impact is expected.

Company Guidance

In the recent call, Ørsted announced a fully underwritten rights issue expected to raise DKK 60 billion in gross proceeds to strengthen its capital structure, particularly to fund full ownership of the Sunrise Wind project following discontinued divestment and financing processes. The company aims to deliver an EBITDA of DKK 25 billion to DKK 28 billion for the full year 2025, with first-half EBITDA standing at DKK 13.9 billion. Ørsted achieved a 92% availability rate across its offshore portfolio, a significant improvement from the previous year, and reported a total recordable injury rate of 2.7. The company plans to deliver on its 8.1 gigawatt offshore wind construction program, with expectations to almost double its installed capacity by 2027. Additionally, Ørsted secured DKK 7 billion from divestments and closed project financing for Greater Changhua 2, raising approximately DKK 20 billion. The rights issue is intended to provide financial flexibility, enabling Ørsted to pursue future offshore wind projects in core markets and maintain a solid investment-grade rating.

Orsted Financial Statement Overview

Summary

Orsted's financial performance is mixed. The income statement shows recovery with improved margins and revenue growth, but cash flow challenges persist, particularly with negative free cash flow. The balance sheet is stable with manageable leverage, but cash flow issues need addressing for long-term stability.

Income Statement

Positive

Orsted's income statement shows a mixed performance. The TTM data indicates a positive revenue growth rate of 4.23%, recovering from previous declines. The gross profit margin is healthy at 37.88%, and the net profit margin has improved significantly to 10.33% from negative figures in prior years. However, the company has experienced volatility in EBIT and EBITDA margins, reflecting operational challenges. Overall, the income statement suggests a recovery trajectory but highlights the need for consistent profitability improvements.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.03, indicating manageable leverage. The return on equity has improved to 8.21% in the TTM period, showing better utilization of equity. However, the equity ratio is moderate, suggesting a balanced approach to financing. The company has maintained a solid asset base, which supports its long-term growth prospects. Overall, the balance sheet is strong, with some room for improvement in equity utilization.

Cash Flow

Neutral

Orsted's cash flow statement reveals challenges, particularly with free cash flow, which remains negative. The operating cash flow to net income ratio is 0.32, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is negative, reflecting cash flow pressures. Despite a slight improvement in free cash flow growth, the company needs to enhance its cash flow management to support sustainable growth. The cash flow position is a concern and requires strategic focus.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.29B	58.83B	69.08B	126.09B	69.14B	37.10B
Gross Profit	24.35B	22.87B	22.45B	28.93B	16.03B	11.32B
EBITDA	22.24B	16.84B	-7.70B	27.34B	23.84B	27.49B
Net Income	6.64B	-206.00M	-20.51B	15.13B	10.96B	15.60B
Balance Sheet
Total Assets	285.11B	298.79B	281.14B	314.14B	270.38B	196.72B
Cash, Cash Equivalents and Short-Term Investments	24.72B	32.94B	39.18B	38.13B	14.83B	29.87B
Total Debt	90.86B	96.62B	88.05B	71.55B	58.53B	41.82B
Total Liabilities	187.69B	205.30B	203.34B	218.61B	185.25B	99.39B
Stockholders Equity	88.04B	83.09B	75.89B	91.54B	82.06B	94.61B
Cash Flow
Free Cash Flow	-34.40B	-24.30B	-9.67B	-21.08B	-22.42B	-10.49B
Operating Cash Flow	16.49B	18.36B	28.53B	11.92B	12.15B	16.47B
Investing Cash Flow	-21.03B	-21.76B	-34.73B	-17.91B	-12.59B	-16.56B
Financing Cash Flow	7.29B	15.84B	265.00M	13.79B	3.39B	-2.13B

Orsted Technical Analysis

Technical Analysis Sentiment

Negative

Last Price10.10

Price Trends

50DMA

13.95

Negative

100DMA

13.74

Negative

200DMA

14.51

Negative

Market Momentum

MACD

-1.30

Positive

RSI

32.30

Neutral

STOCH

40.47

Neutral

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 10.1 is below the 20-day moving average (MA) of 11.98, below the 50-day MA of 13.95, and below the 200-day MA of 14.51, indicating a bearish trend. The MACD of -1.30 indicates Positive momentum. The RSI at 32.30 is Neutral, neither overbought nor oversold. The STOCH value of 40.47 is Neutral, 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 (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNW	67 Neutral	$2.76B	25.28	8.27%	―	33.19%	486.74%
Sector *	66 Neutral	$17.37B	18.10	5.54%	3.61%	6.63%	11.55%
CWEN	63 Neutral	$5.97B	46.27	3.80%	5.74%	-0.27%	-16.25%
CWEN.A	61 Neutral	$5.97B	43.76	3.80%	6.07%	-0.27%	-16.25%
DNNGY	57 Neutral	$12.71B	14.29	9.54%	―	15.65%	―
BEPC	51 Neutral	$6.05B	32.67	-63.28%	4.37%	12.46%	-388.89%
SMR	42 Neutral	$9.87B	―	-29.93%	―	305.08%	-17.22%

* Utilities Sector Average

Performance Comparison

DNNGY

Orsted

10.10

-9.56

-48.63%

CWEN

Clearway Energy

29.81

2.95

10.98%

CWEN.A

Clearway Energy

28.19

3.35

13.49%

BEPC

Brookfield Renewable

33.70

7.33

27.80%

SMR

NuScale Power

34.65

27.06

356.52%

RNW

ReNew Energy Global

7.61

1.92

33.74%

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: Aug 26, 2025