Vestas Wind Systems AS (VWDRY) AI Stock Analysis

• Market Cap: $27.48B
• Dividend Yield: 0.31%
• Average Volume (3M): 153.74K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.60
• Revenue Growth: 19.75%
• EPS Growth: 1784.07%
• Country: US
• Employees: 35,927
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.12
• Shares Outstanding: 3,029,632,000
• 10 Day Avg. Volume: 109,948
• 30 Day Avg. Volume: 153,735
• PEG Ratio: 0.05
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 11.25
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 4.79
• Enterprise Value/Ebitda: 9.08
• 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: 75 Outperform
• Price Target: $9.50 ▲(20.10% Upside)

Vestas Wind Systems AS scores well due to strong financial performance and bullish technical indicators. The company's robust revenue growth, improved profitability, and zero debt position are significant strengths. However, the high P/E ratio and challenges highlighted in the earnings call, such as service segment issues and safety concerns, temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective execution, supporting long-term business expansion and stability.

Cash Flow Management

Robust cash flow generation enhances financial flexibility, allowing for strategic investments and resilience against market fluctuations.

Zero Debt Position

A zero debt position reduces financial risk, providing Vestas with greater leverage to invest in growth opportunities and weather economic downturns.

Negative Factors

Service Segment Challenges

Challenges in the Service segment can impact long-term profitability and customer satisfaction, necessitating strategic adjustments.

Safety Concerns

Rising safety incidents can lead to increased costs and regulatory scrutiny, affecting operational efficiency and reputation.

ASP Decline in Power Solutions

A decline in average selling price may pressure margins and profitability, requiring strategic pricing and cost management adjustments.

Vestas Wind Systems AS Business Overview & Revenue Model

Company Description

Vestas Wind Systems AS is a Danish company and a global leader in the development, manufacturing, installation, and servicing of wind turbines. Founded in 1945, Vestas operates in the renewable energy sector, focusing primarily on wind energy solutions. The company offers a wide range of products and services including onshore and offshore wind turbines, as well as comprehensive maintenance and service agreements designed to maximize the performance and lifespan of wind energy systems.

How the Company Makes Money

Vestas generates revenue primarily through the sale of wind turbines and associated services. This includes the manufacturing and installation of turbine systems, which account for a significant portion of its income. Additionally, Vestas offers long-term service agreements (LTSA) that provide ongoing maintenance and support for the wind farms, contributing to a steady revenue stream. The company also benefits from strategic partnerships with energy developers and utility companies, which enhance its market reach and project pipeline. Furthermore, Vestas capitalizes on government incentives and renewable energy policies that promote the adoption of wind energy, allowing it to secure contracts in various regions worldwide.

Vestas Wind Systems AS Financial Statement Overview

Summary

Vestas Wind Systems AS demonstrates strong financial performance with significant revenue growth, improved profitability margins, and robust cash flow management. The balance sheet shows zero debt, enhancing financial flexibility, though the equity ratio remains relatively low. Overall, the company is on a solid growth trajectory with improving operational efficiencies.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.69B	17.30B	15.38B	14.49B	15.59B	14.82B
Gross Profit	2.66B	2.06B	1.28B	118.00M	1.56B	1.54B
EBITDA	1.41B	1.76B	1.13B	-545.00M	1.26B	1.66B
Net Income	937.00M	499.00M	77.00M	-1.57B	134.00M	765.00M
Balance Sheet
Total Assets	25.92B	24.64B	22.51B	20.09B	19.71B	18.16B
Cash, Cash Equivalents and Short-Term Investments	3.71B	3.94B	3.32B	2.35B	2.51B	3.15B
Total Debt	0.00	3.27B	3.39B	2.43B	1.44B	1.35B
Total Liabilities	22.44B	21.10B	19.47B	17.03B	14.95B	13.46B
Stockholders Equity	3.47B	3.53B	3.03B	3.04B	4.75B	4.65B
Cash Flow
Free Cash Flow	1.88B	1.18B	135.00M	-1.01B	120.00M	55.00M
Operating Cash Flow	3.15B	2.33B	1.03B	-195.00M	996.00M	743.00M
Investing Cash Flow	-1.33B	-1.34B	-782.00M	-679.00M	-939.00M	-267.00M
Financing Cash Flow	-497.00M	-478.00M	743.00M	846.00M	-715.00M	-234.00M

Vestas Wind Systems AS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 7.91 is below the 20-day moving average (MA) of 8.36, above the 50-day MA of 7.62, and above the 200-day MA of 6.07, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 73.78 is Negative, neither overbought nor oversold. The STOCH value of 78.07 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VWDRY	75 Outperform	$27.48B	26.28	28.21%	0.31%	19.75%	1784.07%
CMI	72 Outperform	$69.95B	26.30	23.84%	1.51%	-1.78%	27.35%
IR	69 Neutral	$31.32B	58.81	5.35%	0.10%	4.20%	-34.47%
MIR	66 Neutral	$5.98B	199.92	1.58%	―	7.81%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$8.15B	26.44	12.38%	―	5.52%	9.03%
GTLS	58 Neutral	$9.84B	248.38	2.25%	―	5.47%	-75.40%

Vestas Wind Systems AS Corporate Events

Vestas Wind’s Earnings Call: Optimism Amid Challenges

The latest earnings call from Vestas Wind presented a cautiously optimistic outlook, balancing significant achievements in revenue growth, order intake, and gross profit against challenges in the Service segment, safety metrics, and a decline in average selling prices (ASP). The company remains focused on navigating these opportunities and operational challenges effectively.

Vestas Wind Earnings Call: Growth Amid Challenges

The recent earnings call for Vestas Wind presented a mixed sentiment, reflecting both achievements and challenges. The company reported significant revenue growth and accomplishments in onshore projects, yet faced difficulties with order intake, particularly in the U.S., and incurred costs related to offshore ramp-up. Despite a decline in service revenue due to currency headwinds and an increase in safety incidents, the positive outlook for future growth and sustainability achievements provided a balanced perspective.