Vestas Wind Systems AS (VWDRY) AI Stock Analysis

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Vestas Wind Systems AS

(OTC:VWDRY)

Rating:66Neutral

Price Target:―

Vestas Wind Systems AS shows a solid financial base with strong revenue growth and effective cash flow management. The earnings call provided positive guidance, but challenges in manufacturing and safety concerns pose risks. The technical analysis indicates bearish momentum, and the valuation suggests the stock is moderately priced. Overall, the company has a strong growth trajectory but must address operational challenges to enhance its stock performance.

Vestas Wind Systems AS (VWDRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$15.73B

Dividend Yield0.33%

Average Volume (3M)314.08K

Price to Earnings (P/E)25.4

Beta (1Y)0.79

Revenue Growth12.40%

EPS Growth554.81%

CountryUS

Employees35,927

SectorIndustrials

Sector Strength94

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.00

Shares Outstanding3,029,632,000

10 Day Avg. Volume166,418

30 Day Avg. Volume314,082

Financial Highlights & Ratios

PEG Ratio1.83

Price to Book (P/B)4.46

Price to Sales (P/S)0.00

P/FCF Ratio8.05

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 AS (VWDRY) is a global leader in sustainable energy solutions, primarily focusing on the design, manufacture, installation, and servicing of wind turbines across the world. The company operates in the renewable energy sector, offering a wide range of products and services that enable its clients to harness wind power efficiently. With its headquarters in Aarhus, Denmark, Vestas is committed to driving the transition towards a sustainable energy future by providing innovative and reliable wind energy solutions.

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: 22.10%|

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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
882.00M	794.00M	292.00M	-1.24B	322.00M	1.03B
	EBITDA
981.00M	1.76B	1.13B	-545.00M	1.26B	1.66B
	Net Income Common Stockholders
572.00M	499.00M	77.00M	-1.57B	134.00M	765.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.56B	3.94B	3.32B	2.35B	2.51B	3.15B
	Total Assets
25.28B	24.64B	22.51B	20.09B	19.71B	18.16B
	Total Debt
0.00	0.00	3.39B	2.43B	1.44B	1.35B
	Net Debt
-3.38B	-3.79B	-3.29B	75.00M	-958.00M	-1.69B
	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

Technical Analysis Sentiment

Positive

Last Price5.36

Price Trends

50DMA

4.76

Positive

100DMA

4.75

Positive

200DMA

5.37

Negative

Market Momentum

MACD

0.14

Positive

RSI

59.26

Neutral

STOCH

74.08

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 5.36 is above the 20-day moving average (MA) of 5.26, above the 50-day MA of 4.76, and below the 200-day MA of 5.37, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 74.08 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 (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETN	81 Outperform	$127.50B	32.89	20.84%	1.18%	7.00%	16.84%
IR	74 Outperform	$33.06B	40.51	8.09%	0.10%	5.27%	0.61%
CMI	73 Outperform	$44.70B	16.14	27.78%	2.24%	-0.39%	47.31%
VWDRY	66 Neutral	$15.73B	25.43	17.70%	0.33%	12.40%	554.81%
Sector *	66 Neutral	$4.48B	12.24	5.32%	248.54%	4.09%	-12.10%
BWEN	52 Neutral	$39.93M	30.96	-1.24%	―	-25.94%	-108.22%
TPIC	49 Neutral	$66.16M	―	77.71%	―	1.71%	-3.55%

* Industrials Sector Average

Performance Comparison

VWDRY

Vestas Wind Systems AS

5.35

-3.62

-40.36%

BWEN

Broadwind Energy

1.81

-2.20

-54.86%

CMI

Cummins

323.12

56.99

21.41%

ETN

Eaton

326.48

15.81

5.09%

TPIC

TPI Composites

1.27

-3.49

-73.32%

Ingersoll Rand

81.87

-7.18

-8.06%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.