Orsted (DNNGY) AI Stock Analysis

• Market Cap: $28.06B
• Dividend Yield: N/A
• Average Volume (3M): 154.22K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.54
• Revenue Growth: 19.16%
• EPS Growth: -147.89%
• Country: US
• Employees: 8,251
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.22
• Shares Outstanding: 3,963,989,500
• 10 Day Avg. Volume: 12,427
• 30 Day Avg. Volume: 154,216
• PEG Ratio: 6.90
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 2.31
• P/FCF Ratio: -5.59
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.43
• Enterprise Value/Ebitda: 1.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $7.00 ▼(-36.13% Downside)

Orsted's overall stock score reflects a mixed financial performance with recovery signs but persistent cash flow challenges. Technical analysis indicates bearish momentum, and valuation metrics are weak with a negative P/E ratio. The earnings call provided positive strategic updates but highlighted significant challenges, particularly in U.S. projects. These factors collectively contribute to a cautious outlook.

Positive Factors

Strategic Divestments

The divestment of a 50% stake in Hornsea 3 strengthens Ørsted's capital structure, providing financial flexibility to invest in new projects and enhance long-term growth.

Revenue Growth

Consistent revenue growth reflects Ørsted's ability to expand its market presence and capitalize on the increasing demand for renewable energy solutions.

Operational Progress

Progress in offshore wind projects positions Ørsted to significantly enhance its EBITDA, supporting long-term profitability and market leadership in renewable energy.

Negative Factors

Cash Flow Challenges

Persistent negative free cash flow could limit Ørsted's ability to fund new projects and investments, potentially hindering future growth and financial stability.

U.S. Project Impairments

Impairments related to U.S. projects highlight financial and regulatory risks, potentially impacting Ørsted's profitability and strategic execution in the U.S. market.

Net Profit Decline

A decline in net profit underscores financial challenges, necessitating improved cost management and strategic adjustments to enhance long-term financial performance.

Orsted Business Overview & Revenue Model

Company Description

Ørsted 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 Money

Ørsted 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 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

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

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

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	27.02B
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: Neutral
• Last Price: 10.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNNGY, the sentiment is Neutral. The current price of 10.96 is above the 20-day moving average (MA) of 6.45, above the 50-day MA of 8.06, and above the 200-day MA of 8.36, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 52.50 is Neutral, neither overbought nor oversold. The STOCH value of 99.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DNNGY.

Orsted Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWEN	70 Neutral	$7.09B	15.05	13.20%	5.02%	2.54%	124.89%
CWEN.A	70 Neutral	$7.09B	14.04	13.20%	5.39%	2.54%	124.89%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RNW	61 Neutral	$2.77B	26.63	7.64%	―	42.09%	219.69%
DNNGY	56 Neutral	$28.06B	―	-1.34%	―	19.16%	-147.89%
BEPC	51 Neutral	$7.29B	―	-38.17%	3.68%	5.93%	-39.88%
SMR	42 Neutral	$6.05B	―	-76.85%	―	765.67%	-202.81%

Orsted Corporate Events

Orsted OTC Strengthens Position in Offshore Wind

Orsted OTC is a leading energy company specializing in offshore wind energy, with a strong presence in Europe and selected markets in the Asia-Pacific region. The company is recognized for its commitment to renewable energy and sustainability.