Orsted (DNNGY) AI Stock Analysis

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Orsted

(OTC:DNNGY)

Rating:55Neutral

Price Target:

$14.50

▼(-6.33%Downside)

Orsted's stock score is primarily influenced by its mixed financial performance and high valuation concerns. While there are positive signs in technical analysis and earnings growth, significant risks exist due to high leverage and potential impacts from project discontinuation.

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

Market Cap

$19.46B

Dividend YieldN/A

Average Volume (3M)2.18K

Price to Earnings (P/E)113.4

Beta (1Y)-0.10

Revenue Growth5.43%

EPS GrowthN/A

CountryUS

Employees8,251

SectorUtilities

Sector Strength76

IndustryRenewable Utilities

Share Statistics

EPS (TTM)0.54

Shares Outstanding1,261,155,600

10 Day Avg. Volume0

30 Day Avg. Volume2,177

Financial Highlights & Ratios

PEG Ratio0.30

Price to Book (P/B)1.34

Price to Sales (P/S)0.00

P/FCF Ratio-3.56

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$14.50

Price Target Upside-6.33% Downside

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 MoneyOrsted generates revenue primarily through the sale of electricity generated from its offshore and onshore wind farms. The company enters into long-term power purchase agreements (PPAs) with governments, utilities, and large corporations, providing them with a stable supply of renewable energy. Additionally, Orsted earns money by selling electricity on wholesale energy markets. The company also benefits from government subsidies and incentives aimed at promoting renewable energy, which can vary by region. Orsted's strategic partnerships and joint ventures with other energy companies and financial investors further help in sharing investment costs and expanding its project portfolio. The firm's investment in energy storage solutions also contributes to its revenue by enhancing the efficiency and reliability of its renewable energy offerings.

Orsted Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 14.08%|

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 shows mixed financial performance with stable gross profit margin but challenges in revenue growth and profitability. The balance sheet is stable but high leverage and negative free cash flow are concerns.

Income Statement

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Neutral

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.

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
EBITDA	21.47B	16.84B	-7.70B	27.34B	23.84B	27.49B
Net Income	1.83B	-206.00M	-20.51B	15.13B	10.96B	15.60B
Balance Sheet
Total Assets	287.29B	298.79B	281.14B	314.14B	270.38B	196.72B
Cash, Cash Equivalents and Short-Term Investments	22.87B	32.94B	39.18B	38.13B	14.83B	29.87B
Total Debt	91.78B	96.62B	88.05B	71.55B	58.53B	41.82B
Total Liabilities	190.61B	205.30B	203.34B	218.61B	185.25B	99.39B
Stockholders Equity	86.62B	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

Technical Analysis Sentiment

Positive

Last Price15.48

Price Trends

50DMA

13.98

Positive

100DMA

14.26

Positive

200DMA

15.61

Negative

Market Momentum

MACD

0.32

Negative

RSI

61.74

Neutral

STOCH

80.34

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 15.48 is above the 20-day moving average (MA) of 14.77, above the 50-day MA of 13.98, and below the 200-day MA of 15.61, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 61.74 is Neutral, neither overbought nor oversold. The STOCH value of 80.34 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWEN	76 Outperform	$6.60B	41.20	4.70%	5.32%	-1.34%	21.62%
CWEN.A	75 Outperform	$6.60B	38.83	4.70%	5.64%	-1.34%	21.62%
Sector *	67 Neutral	$16.78B	17.07	4.47%	3.71%	4.76%	6.06%
RNW	65 Neutral	$2.77B	51.41	4.18%	―	-1.77%	-41.65%
BEPC	60 Neutral	$6.53B	32.67	-4.65%	4.10%	1.01%	-110.78%
DNNGY	55 Neutral	$19.46B	113.37	1.91%	―	5.43%	―
SMR	42 Neutral	$14.29B	―	-32.34%	―	62.41%	-85.81%

* Utilities Sector Average

Performance Comparison

DNNGY

Orsted

15.48

-3.59

-18.83%

CWEN

Clearway Energy

32.98

8.56

35.05%

CWEN.A

Clearway Energy

31.08

8.61

38.32%

BEPC

Brookfield Renewable

36.35

8.92

32.52%

SMR

NuScale Power

50.25

39.19

354.34%

RNW

ReNew Energy Global

7.65

2.06

36.85%

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: Jun 24, 2025