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Orsted A/S (DNNGY)
OTHER OTC:DNNGY
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Orsted
(OTC:DNNGY)
Rating:54Neutral
Price Target:
$14.00
▼(-0.78%Downside)
Orsted (DNNGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.02B
Dividend YieldN/A
Average Volume (3M)4.12K
Price to Earnings (P/E)103.4
Beta (1Y)-0.06
Revenue Growth5.43%
EPS GrowthN/A
CountryUS
Employees8,251
SectorUtilities
Sector Strength84
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.54
Shares Outstanding1,261,155,600
10 Day Avg. Volume0
30 Day Avg. Volume4,115
Financial Highlights & Ratios
PEG Ratio6.90
Price to Book (P/B)1.64
Price to Sales (P/S)0.00
P/FCF Ratio-5.59
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 leading global renewable energy company headquartered in Denmark. The company specializes in the development, construction, and operation of offshore and onshore wind farms, solar farms, and energy storage facilities. Ørsted is committed to creating a world that runs entirely on green energy, and its core services include renewable energy generation, as well as providing sustainable energy solutions to businesses and communities.
How the Company Makes MoneyØrsted makes money primarily through the sale of electricity generated from its renewable energy assets, including offshore and onshore wind farms, solar power installations, and energy storage solutions. The company enters into long-term power purchase agreements (PPAs) with utilities, governments, and corporate clients, providing a stable and recurring revenue stream. Additionally, Ørsted engages in trading activities related to the energy market, leveraging its expertise to optimize the dispatch of power and manage energy price risks. Significant partnerships with governments and other enterprises also contribute to its earnings, facilitating the development and expansion of its renewable energy projects globally.
Orsted Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 3.98%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance with increased EBITDA and successful divestments. However, significant challenges were noted, including the discontinuation of the Hornsea 4 project and financial implications from U.S. tariffs and project cancellations.Q1-2025 Updates
Positive Updates
Solid EBITDA Growth
Reported group EBITDA increased by 18% compared to last year, amounting to DKK8.9 billion.
Successful Divestments
Completed divestments of solar farms in the U.S. and part of the West of Duddon Sands offshore wind farm in the U.K., generating proceeds of around DKK7 billion.
Operational Capacity Milestone
Successfully commissioned the Gode Wind 3 project, increasing installed offshore wind capacity to over 10 gigawatts.
Increased Renewable Energy Share
Renewable energy generation reached 99% in Q1 2025, driven by the closing of a large coal-fueled CHP plant.
Improved Safety Record
Total recordable injury rate reduced from 2.9% last year to 1.9%.
Negative Updates
Hornsea 4 Project Discontinuation
Decision to discontinue the development of the 2.4 gigawatt Hornsea 4 project due to cost increases and execution risks.
U.S. Tariff Impacts
New tariffs on steel and aluminum imports to the U.S. led to an additional impairment of DKK1.2 billion.
Fatalities at Plum Creek Wind Farm
Two tragic fatalities among contractor employees, overshadowing safety improvements.
Potential Financial Impact from Project Cancellation
Hornsea 4 discontinuation could lead to a negative impact on EBITDA of approximately DKK3 billion to DKK3.5 billion in Q2 2025.
Company Guidance
During the Ørsted Q1 2025 earnings call, CEO Rasmus Errboe outlined the company's strategic priorities and provided a detailed update on their offshore wind projects. The company has set a target to deliver more than 8 gigawatts in their offshore construction portfolio and reported a solid operational performance with an 18% increase in group EBITDA compared to last year, totaling DKK8.9 billion. Ørsted also highlighted their commitment to a disciplined capital allocation strategy, focusing on value over volume, which led to the discontinuation of the 2.4 gigawatt Hornsea 4 project in its current form due to increased costs and execution risks. The divestment of assets, such as parts of the West of Duddon Sands offshore wind farm, brought in total proceeds of around DKK7 billion, supporting a strengthened capital structure. Despite short-term challenges in the offshore wind sector, Ørsted reaffirmed its full-year EBITDA guidance of DKK25 billion to DKK28 billion and a gross investment forecast of DKK50 billion to DKK54 billion. The company also reported a decrease in their total recordable injury rate, reflecting a focus on safety, and emphasized the importance of monitoring evolving regulatory frameworks to ensure continued competitiveness.Orsted Financial Statement Overview
Summary
Orsted's financial performance is mixed with a declining revenue trend and challenges in profitability. The balance sheet shows moderate stability with high leverage, and cash flow issues are evident due to negative free cash flow trends.Income Statement
Orsted's income statement shows a declining trend in revenue with a sharp decrease from 2022 to 2023 and a slight recovery in TTM. The gross profit margin is around 31% in TTM, indicating stability in cost management. However, the net profit margin is relatively low at 2.97% in TTM due to high operating expenses. The company has struggled with profitability over recent periods, especially with a negative net income in 2023. The TTM figures show a turnaround with positive net income, yet the overall growth trajectory remains weak.55
Neutral
Balance Sheet
The balance sheet reflects a moderate level of financial stability. Orsted's debt-to-equity ratio is approximately 1.06 in TTM, suggesting a balanced approach to leveraging. The equity ratio is 30.15%, indicating a significant proportion of assets financed by equity. Return on equity (ROE) is quite low at 2.11% in TTM, pointing to limited profitability relative to shareholder's equity. Despite high total liabilities, the company's liquidity position is supported by substantial cash reserves.60
Neutral
Cash Flow
Orsted's cash flow statement reveals challenges in maintaining positive free cash flow, with significant capital expenditures leading to negative free cash flow trends. The operating cash flow to net income ratio is 8.41 in TTM, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is -17.91, highlighting the impact of high capital investments. The free cash flow growth rate is negative, pointing to ongoing cash flow challenges.48
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 61.68B | 58.83B | 69.08B | 126.09B | 69.14B | 37.10B | Gross Profit |
| 19.10B | 22.87B | 22.45B | 28.93B | 16.03B | 11.32B | EBIT |
| 5.46B | 6.17B | -17.85B | 13.37B | 8.04B | 9.01B | EBITDA |
| 21.47B | 16.84B | -7.70B | 27.34B | 23.84B | 27.49B | Net Income Common Stockholders |
| 1.83B | -206.00M | -20.51B | 15.13B | 10.96B | 15.60B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 25.31B | 32.94B | 39.18B | 38.13B | 14.83B | 29.87B | Total Assets |
| 182.78B | 298.79B | 281.14B | 314.14B | 270.38B | 196.72B | Total Debt |
| 37.06B | 96.62B | 88.05B | 71.55B | 58.53B | 41.82B | Net Debt |
| 33.32B | 73.81B | 78.38B | 57.84B | 49.90B | 36.38B | Total Liabilities |
| 96.94B | 205.30B | 203.34B | 218.61B | 185.25B | 99.39B | Stockholders Equity |
| 82.43B | 83.09B | 75.89B | 91.54B | 82.06B | 94.61B |
| Cash Flow | Free Cash Flow | ||||
| -32.77B | -24.30B | -9.67B | -21.08B | -22.42B | -10.49B | Operating Cash Flow |
| 15.38B | 18.36B | 28.53B | 11.92B | 12.15B | 16.47B | Investing Cash Flow |
| -23.41B | -21.76B | -34.73B | -17.91B | -12.59B | -16.56B | Financing Cash Flow |
| 878.00M | 15.84B | 265.00M | 13.79B | 3.39B | -2.13B |
Orsted Technical Analysis
Positive
14.11
Price Trends
13.51
Positive
13.94
Positive
16.34
Negative
Market Momentum
0.20
Negative
57.33
Neutral
91.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNNGY, the sentiment is Positive. The current price of 14.11 is above the 20-day moving average (MA) of 13.58, above the 50-day MA of 13.51, and below the 200-day MA of 16.34, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 91.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNNGY.
Orsted Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.34B | 39.49 | 4.70% | 5.55% | -1.34% | 21.62% | |
75 Outperform | $6.34B | 37.17 | 4.70% | 5.89% | -1.34% | 21.62% | |
65 Neutral | $2.47B | 98.12 | 2.00% | ― | -1.77% | -41.65% | |
64 Neutral | $8.62B | 10.39 | 4.24% | 4.63% | 4.07% | -13.04% | |
60 Neutral | $5.80B | 32.67 | -4.65% | 4.62% | 1.01% | -110.78% | |
54 Neutral | $18.02B | 103.37 | 1.91% | ― | 5.43% | ― | |
42 Neutral | $11.48B | ― | -32.34% | ― | 62.41% | -85.81% |
* Utilities Sector Average
Performance Comparison
DNNGY
Orsted
14.11
-4.26
-23.19%
CWEN
Clearway Energy
31.61
7.11
29.02%
CWEN.A
Clearway Energy
29.75
7.44
33.35%
BEPC
Brookfield Renewable
32.29
4.37
15.65%
SMR
NuScale Power
38.82
30.32
356.71%
RNW
ReNew Energy Global
6.79
0.58
9.34%
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.