Orsted (DNNGY) AI Stock Analysis

• Market Cap: $27.78B
• Dividend Yield: N/A
• Average Volume (3M): 13.58K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.61
• 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: 0
• 30 Day Avg. Volume: 13,579
• 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: 1.32
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 1.92
• Enterprise Value/Ebitda: 2.62
• 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: 50 Neutral
• Price Target: $7.00 ▼(-36.13% Downside)

Orsted's overall stock score is primarily impacted by financial challenges, including high leverage and negative cash flow. While technical indicators suggest potential stabilization, valuation remains a concern due to negative earnings. Strategic achievements from the earnings call provide some optimism, but significant risks remain.

Positive Factors

Strategic Divestments

The divestment of a significant stake in Hornsea 3 enhances Ørsted's financial flexibility, allowing reinvestment in core projects and reducing leverage.

Operational Efficiency

Improved operational efficiency in offshore wind projects boosts reliability and profitability, supporting long-term growth and competitive positioning.

Renewable Energy Commitment

Ørsted's commitment to renewable energy solidifies its leadership in the green energy sector, aligning with global sustainability trends and consumer demand.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting the company's ability to invest in new projects and weather economic downturns.

Negative Cash Flow

Persistent negative cash flow challenges Ørsted's ability to fund operations and growth initiatives internally, increasing reliance on external financing.

U.S. Project Impairments

Impairments in U.S. projects highlight regulatory and cost challenges, potentially affecting future profitability and strategic expansion in the region.

Orsted Business Overview & Revenue Model

Company Description

Ørsted A/S is a Danish multinational power company and a global leader in renewable energy, particularly in offshore wind power. The company focuses on developing, constructing, and operating wind farms, as well as providing energy solutions in the areas of solar energy, biomass, and energy storage. Ørsted aims to create a world that runs entirely on green energy, contributing significantly to the energy transition and sustainability efforts worldwide.

How the Company Makes Money

Ørsted generates revenue primarily through the sale of electricity produced from its renewable energy assets, particularly offshore wind farms. The company operates under a regulated framework, often entering long-term power purchase agreements (PPAs) with energy suppliers and utilities, ensuring a steady revenue stream. In addition to wind energy, Ørsted earns revenue from its solar energy projects, biomass facilities, and energy trading activities. The company also benefits from government incentives and subsidies aimed at promoting renewable energy. Strategic partnerships with other energy companies and organizations enhance Ørsted's ability to expand its project portfolio and optimize operational efficiency, further contributing to its financial performance.

Orsted Financial Statement Overview

Summary

Orsted faces challenges with declining revenues and high leverage, impacting its financial stability. Improvements in operational efficiency and profitability in the TTM are positive, but negative free cash flow and high debt levels pose significant risks.

Income Statement

Orsted's income statement shows a declining revenue trend with a significant drop in the TTM period. The gross profit margin remains relatively stable, but net profit margin has fluctuated, turning positive in the TTM after a negative previous year. The EBIT and EBITDA margins have improved in the TTM, indicating better operational efficiency despite the revenue decline.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a risk. However, the equity ratio remains stable. Return on equity has improved in the TTM, suggesting better profitability relative to equity, but the overall leverage remains a concern.

Cash Flow

Orsted's cash flow statement reveals challenges with negative free cash flow and a declining free cash flow growth rate. The operating cash flow to net income ratio is positive, indicating some operational cash generation, but the free cash flow to net income ratio is negative, highlighting cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.72B	58.83B	69.08B	126.09B	69.14B	37.10B
Gross Profit	19.07B	22.87B	22.45B	28.93B	16.03B	11.32B
EBITDA	14.02B	16.84B	-7.70B	27.34B	23.84B	27.02B
Net Income	1.25B	-206.00M	-20.51B	15.13B	10.96B	15.60B
Balance Sheet
Total Assets	47.08B	298.79B	281.14B	314.14B	270.38B	196.72B
Cash, Cash Equivalents and Short-Term Investments	4.73B	32.94B	39.18B	38.13B	14.83B	29.87B
Total Debt	20.82B	96.62B	88.05B	71.55B	58.53B	41.82B
Total Liabilities	35.64B	205.30B	203.34B	218.61B	185.25B	99.39B
Stockholders Equity	10.05B	83.09B	75.89B	91.54B	82.06B	94.61B
Cash Flow
Free Cash Flow	-25.47B	-24.30B	-9.67B	-21.08B	-22.42B	-10.49B
Operating Cash Flow	17.99B	18.36B	28.53B	11.92B	12.15B	16.47B
Investing Cash Flow	-17.76B	-21.76B	-34.73B	-17.91B	-12.59B	-16.56B
Financing Cash Flow	352.58M	15.84B	265.00M	13.79B	3.39B	-2.13B

Orsted Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 10.96 is above the 20-day moving average (MA) of 7.06, above the 50-day MA of 7.23, and above the 200-day MA of 8.23, indicating a bearish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 4.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNNGY.

Orsted Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWEN	70 Neutral	$6.59B	13.95	13.20%	5.42%	2.54%	124.89%
CWEN.A	70 Neutral	$6.59B	13.18	13.20%	5.73%	2.54%	124.89%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RNW	61 Neutral	$1.95B	18.72	7.64%	―	42.09%	219.69%
BEPC	51 Neutral	$6.85B	-5.70	-38.17%	3.91%	5.93%	-39.88%
DNNGY	50 Neutral	$27.78B	-44.46	-1.34%	―	19.16%	-147.89%
SMR	42 Neutral	$4.86B	―	-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.