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Vestas Wind Systems AS (VWDRY)
OTHER OTC:VWDRY
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Vestas Wind Systems AS
(OTC:VWDRY)
Rating:66Neutral
Price Target:―
Vestas Wind Systems AS (VWDRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.29B
Dividend Yield0.48%
Average Volume (3M)258.94K
Price to Earnings (P/E)27.7
Beta (1Y)0.81
Revenue Growth12.40%
EPS Growth554.81%
CountryUS
Employees35,927
SectorIndustrials
Sector Strength85
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.00
Shares Outstanding3,029,632,000
10 Day Avg. Volume436,567
30 Day Avg. Volume258,937
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.89
Price to Sales (P/S)0.00
P/FCF Ratio-8.66
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 ConsensusN/A
Number of Analyst Covering0
Vestas Wind Systems AS Business Overview & Revenue Model
Company DescriptionVestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two segments, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.
How the Company Makes MoneyVestas Wind Systems AS generates revenue through several key streams. The primary source of income is the sale of wind turbines and related equipment to energy producers and utilities worldwide. This includes both onshore and offshore wind turbines, which are customized to meet the specific needs of each project. In addition to turbine sales, Vestas offers comprehensive service agreements to maintain and optimize the performance of installed turbines over their lifecycle, providing a steady stream of revenue from long-term service contracts. The company also earns from the sale of spare parts and technology upgrades to existing customers. Strategic partnerships and collaborations with governments and other energy stakeholders further bolster Vestas's revenue potential, as they often lead to large-scale projects and expansion into new markets.
Vestas Wind Systems AS Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 24.60%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call reveals strong revenue growth and order intake improvements, alongside challenges in tariff uncertainties and service recovery. While financial metrics show positive growth, ongoing operational issues and geopolitical challenges present obstacles.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Q1 2025 revenue increased by 29% year-on-year to €3.5 billion, driven by higher activity and pricing in Power Solution.
Order Intake Surge
Order intake increased by 36% year-on-year to 3.1-gigawatt, with strong momentum in offshore and EMEA onshore.
Gross Profit and Margin Improvement
Gross profit increased by 47% to €359 million, with a gross margin improvement of 1.3 percentage points year-on-year.
Service Segment Growth
Service segment backlog increased to almost €37 billion, up from €34 billion a year ago, with 157-gigawatt under service.
Strong Cash Flow and Net Position
Operating cash flow was positive €28 million, with a significant improvement in free cash flow of almost €700 million compared to Q1 last year, ending with a net cash position of €366 million.
Negative Updates
Increased Tariff Uncertainty
Ongoing geopolitical and trade volatility, especially in the U.S., leading to uncertainty and potential increased costs due to tariffs.
Service Recovery Plan Challenges
The Service segment is one quarter into a recovery plan expected to run until the end of 2026, indicating ongoing challenges in restoring profitability.
Recordable Injuries Increase
Number of recordable injuries per million working hours increased from 2.9 to 3.2 year-on-year, highlighting safety challenges.
Empire Wind Project Uncertainty
Empire Wind project faces unprecedented challenges with a stop work order, creating uncertainty in the offshore segment.
Company Guidance
In the Q1 2025 call, Vestas reported a revenue of €3.5 billion, marking a 29% increase year-on-year, primarily driven by heightened activity and increased average pricing in Power Solutions. The EBIT margin was a positive 0.4%, with operating profit bolstered by revenue growth and improved project profitability despite the typically low seasonal activity. Order intake reached 3.1 GW, up 36% year-on-year, with notable momentum in offshore and EMEA onshore markets. The ASP per megawatt increased to €1.4 million from the previous quarter's €1.18 million. Vestas maintained a leading market share, which rose from 28% to 30%, emphasizing value over volume. The service segment, one quarter into its recovery plan, saw a backlog increase to nearly €37 billion, up from €34 billion a year ago. The segment's EBIT margin was reported at 18%. The new CFO, Jakob Wegge-Larsen, is set to start in June, and the company is preparing for potential policy-related uncertainties in the U.S., particularly concerning tariffs and the IRA.Vestas Wind Systems AS Financial Statement Overview
Summary
Vestas Wind Systems AS demonstrates strong financial performance with significant revenue growth, improved profitability, and robust cash flow management. The absence of debt and strong cash generation are key strengths, but the high reliance on liabilities and moderate profitability margins suggest room for improvement.Income Statement
Vestas Wind Systems AS shows a positive trajectory in its income statement, with a significant increase in total revenue from $15.38 billion in 2023 to $17.29 billion in 2024, reflecting a revenue growth rate of 12.92%. The gross profit margin improved to 11.89% in 2024 from 8.34% in 2023, indicating better cost management. The company's net profit margin increased to 2.88% in 2024 from 0.50% in 2023, demonstrating enhanced profitability. However, the EBIT and EBITDA margins, while improved, remain moderate at 4.59% and 10.20%, respectively, suggesting room for further operational efficiency gains.75
Positive
Balance Sheet
The balance sheet of Vestas Wind Systems AS indicates a stable financial position with zero total debt as of 2024, which is an improvement from $3.39 billion in 2023, enhancing its financial flexibility. The equity ratio stands at 14.32% in 2024, slightly increasing from 13.45% in 2023, showing a modest improvement in financial leverage. The return on equity improved to 14.15% in 2024 from 2.54% in 2023, reflecting a better utilization of equity to generate profits. Despite these strengths, the relatively low equity ratio indicates a high reliance on liabilities.68
Positive
Cash Flow
Vestas Wind Systems AS exhibits strong cash flow metrics with operating cash flow increasing to $2.33 billion in 2024 from $1.03 billion in 2023, indicating robust cash generation capabilities. The free cash flow also improved significantly to $1.18 billion in 2024 from $135 million in 2023, a growth rate of 774.07%, showcasing effective capital expenditure management. The operating cash flow to net income ratio of 4.67 in 2024 underlines strong cash earnings compared to accounting profits. The company demonstrates excellent liquidity and cash flow management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.08B | 17.30B | 15.38B | 14.49B | 15.59B | 14.82B |
| Gross Profit | 2.17B | 2.06B | 1.28B | 118.00M | 1.56B | 1.54B |
| EBITDA | 981.00M | 1.76B | 1.13B | -545.00M | 1.26B | 1.66B |
| Net Income | 572.00M | 499.00M | 77.00M | -1.57B | 134.00M | 765.00M |
Balance Sheet | ||||||
| Total Assets | 25.28B | 24.64B | 22.51B | 20.09B | 19.71B | 18.16B |
| Cash, Cash Equivalents and Short-Term Investments | 3.56B | 3.94B | 3.32B | 2.35B | 2.51B | 3.15B |
| Total Debt | 0.00 | 0.00 | 3.39B | 2.43B | 1.44B | 1.35B |
| Total Liabilities | 21.91B | 21.10B | 19.47B | 17.03B | 14.95B | 13.46B |
| Stockholders Equity | 3.35B | 3.53B | 3.03B | 3.04B | 4.75B | 4.65B |
Cash Flow | ||||||
| Free Cash Flow | 1.85B | 1.18B | 135.00M | -1.01B | 120.00M | 55.00M |
| Operating Cash Flow | 3.12B | 2.33B | 1.03B | -195.00M | 996.00M | 743.00M |
| Investing Cash Flow | -1.45B | -1.34B | -782.00M | -679.00M | -939.00M | -267.00M |
| Financing Cash Flow | -557.00M | -478.00M | 743.00M | 846.00M | -715.00M | -234.00M |
Vestas Wind Systems AS Technical Analysis
Positive
5.47
Price Trends
5.19
Positive
4.94
Positive
5.15
Positive
Market Momentum
0.07
Negative
52.52
Neutral
77.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VWDRY, the sentiment is Positive. The current price of 5.47 is above the 20-day moving average (MA) of 5.45, above the 50-day MA of 5.19, and above the 200-day MA of 5.15, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VWDRY.
Vestas Wind Systems AS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $140.28B | 36.19 | 20.84% | 1.16% | 7.00% | 16.84% | |
70 Outperform | $45.16B | 16.31 | 27.78% | 2.22% | -0.39% | 47.31% | |
68 Neutral | $35.04B | 42.93 | 8.09% | 0.09% | 5.27% | 0.61% | |
66 Neutral | $17.29B | 27.75 | 17.70% | 0.48% | 12.40% | 554.81% | |
59 Neutral | AU$1.64B | 9.68 | 11.24% | 3.68% | 6.75% | 3.18% | |
57 Neutral | $40.84M | 30.96 | -1.24% | ― | -25.94% | -108.22% | |
40 Underperform | $44.89M | ― | 77.71% | ― | 1.71% | -3.55% |
* Industrials Sector Average
Performance Comparison
VWDRY
Vestas Wind Systems AS
5.63
-2.06
-26.79%
BWEN
Broadwind Energy
1.82
-1.33
-42.22%
CMI
Cummins
330.75
67.74
25.76%
ETN
Eaton
356.98
42.48
13.51%
TPIC
TPI Composites
0.94
-3.07
-76.56%
IR
Ingersoll Rand
87.01
-4.64
-5.06%
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.