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Waertsilae Oyj Abp (WRTBY)
OTHER OTC:WRTBY
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Waertsilae Oyj Abp (WRTBY) AI Stock Analysis

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WRTBY

Waertsilae Oyj Abp

(OTC:WRTBY)

Rating:80Outperform
Price Target:
$6.00
▲(8.89%Upside)
Waertsilae Oyj Abp receives a strong overall score of 80.15, driven primarily by its robust financial performance and positive technical indicators. While the stock seems overvalued based on its P/E ratio, the company's strong order book and strategic innovations provide a positive outlook. The earnings call further reinforces confidence in its future prospects.

Waertsilae Oyj Abp (WRTBY) vs. SPDR S&P 500 ETF (SPY)

Waertsilae Oyj Abp Business Overview & Revenue Model

Company DescriptionWärtsilä Oyj Abp is a Finnish corporation that operates primarily in the marine and energy markets. The company provides advanced technologies and complete lifecycle solutions to enhance the environmental and economic performance of vessels and power plants. Wärtsilä's core products and services include the design and manufacture of engines and power systems for ships and power plants, as well as maintenance and optimization services that ensure operational efficiency and sustainability.
How the Company Makes MoneyWärtsilä Oyj Abp generates revenue through multiple streams, primarily from the sale of marine and energy solutions. The marine segment focuses on providing engines, propulsion systems, and integrated solutions for various types of vessels, including cargo ships, passenger ferries, and offshore platforms. The energy segment offers power plant solutions, including engines and energy storage systems, for utilities and industrial customers. In addition to product sales, Wärtsilä earns significant income from long-term service agreements and lifecycle services, which include maintenance, upgrades, and performance optimization for their installed base. The company also engages in strategic partnerships and joint ventures to expand its technological capabilities and market reach, further contributing to its revenue.

Waertsilae Oyj Abp Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: 10.20%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including strong financial performance, record-high order bookings, and innovative solutions in carbon capture. However, challenges such as declining service order intake and significant hurdles in the Energy Storage segment due to geopolitical uncertainties and market competition were noted. Despite these challenges, the overall sentiment of the call was positive, given the substantial achievements and strategic developments.
Q2-2025 Updates
Positive Updates
Strong Q2 Performance
Wärtsilä reported a strong second quarter with significant increases in key financial metrics. Order intake increased by 18% to EUR 2.2 billion, net sales rose by 11% to EUR 1.7 billion, and comparable operating results increased by 18% to EUR 207 million.
All-Time High Order Book
The company achieved an all-time high order book of EUR 8.8 billion, driven by strong equipment orders in both the Marine and Energy segments.
Positive Developments in Marine and Energy Segments
The Marine segment saw higher order intake and net sales; service net sales increased by 11%. The Energy segment experienced a record-high order intake, with net sales up 31%.
Service Agreements Growth
Service agreements saw a 48% increase, with net sales from service agreements up by 9%.
Introduction of Carbon Capture Solution
Wärtsilä launched a groundbreaking carbon capture solution for the Marine industry, capable of reducing CO2 emissions by up to 70%.
Negative Updates
Decline in Service Order Intake
Service order intake decreased by 6%, attributed to the cyclical nature of the project-oriented retrofit business.
Challenges in Energy Storage
Order intake for Energy Storage fell by 79% due to U.S. tariff uncertainties and increased competition, resulting in significant headwinds.
Geopolitical and Economic Uncertainties
The global economic outlook and geopolitical uncertainties, including trade policies and tariffs, pose risks to future investment decisions and market growth.
Company Guidance
In the recent call discussing Wärtsilä's Q2 2025 results, strong performance metrics were highlighted, with key indicators showing positive trends. Order intake surged by 18% to EUR 2.2 billion, contributing to an all-time high order book of nearly EUR 8.8 billion. Net sales increased by 11% to EUR 1.7 billion, and the operating results improved by 11% to EUR 186 million, reaching a 10.8% margin. The company's cash flow was notably robust at EUR 460 million. Equipment order intake, particularly in the Marine and Energy sectors, rose significantly by 45%, while service agreements also showed strong growth with a 48% increase. The company's book-to-bill ratio was a healthy 1.27, indicating a strong pipeline of future business. Additionally, Wärtsilä made progress in divestments and saw improvements in its working capital, supporting a positive outlook for the upcoming quarters despite some market uncertainties.

Waertsilae Oyj Abp Financial Statement Overview

Summary
Waertsilae Oyj Abp exhibits strong financial health with consistent revenue growth, solid profitability margins, and effective leverage management. The company efficiently converts earnings to cash, although monitoring of capital expenditures and equity levels is advisable.
Income Statement
85
Very Positive
Waertsilae Oyj Abp demonstrates strong financial performance with consistent revenue growth as seen in the TTM (Trailing-Twelve-Months) with a 3.70% increase from 2024 to 2025. The company maintains impressive profitability with a Gross Profit Margin of 63.78% and a Net Profit Margin of 8.09% in the TTM. The EBIT and EBITDA margins of 11.27% and 13.60% respectively, reflect solid operational efficiency. However, there is a noticeable fluctuation in net income over the years, which suggests some volatility in profitability.
Balance Sheet
78
Positive
The balance sheet of Waertsilae Oyj Abp reflects a stable financial structure with a Debt-to-Equity Ratio of 0.30 in the TTM, indicating prudent leverage management. The company's Return on Equity stands at 22.56%, showcasing efficient utilization of equity to generate profits. The Equity Ratio of 30.53% indicates a healthy proportion of equity financing. Nonetheless, a slight decline in stockholders' equity from 2024 to 2025 might warrant monitoring.
Cash Flow
82
Very Positive
The cash flow analysis shows robust operational performance with a strong Operating Cash Flow to Net Income Ratio of 2.11 in the TTM, reflecting good cash conversion. The Free Cash Flow to Net Income ratio of 1.81 further supports the company's ability to generate cash relative to its net income. However, Free Cash Flow saw a slight decline of 5.74% from 2024 to 2025, suggesting a need to manage capital expenditures carefully.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.69B6.45B6.02B5.84B4.78B4.60B
Gross Profit4.27B2.98B2.60B2.17B2.09B1.97B
EBITDA909.00M891.00M561.00M143.00M471.00M387.00M
Net Income541.00M503.00M258.00M-59.00M194.00M134.00M
Balance Sheet
Total Assets6.34B7.69B6.80B6.61B6.52B6.23B
Cash, Cash Equivalents and Short-Term Investments501.00M1.55B819.00M461.00M964.00M919.00M
Total Debt1.16B766.00M859.00M949.00M972.00M1.33B
Total Liabilities4.08B5.16B4.57B4.46B4.20B4.04B
Stockholders Equity2.24B2.52B2.23B2.13B2.31B2.18B
Cash Flow
Free Cash Flow978.00M1.04B674.00M-218.00M589.00M566.00M
Operating Cash Flow1.14B1.21B822.00M-62.00M731.00M681.00M
Investing Cash Flow-149.00M-149.00M-138.00M-151.00M-128.00M-55.00M
Financing Cash Flow-307.00M-323.00M-308.00M-289.00M-580.00M-44.00M

Waertsilae Oyj Abp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.51
Price Trends
50DMA
4.42
Positive
100DMA
4.05
Positive
200DMA
3.95
Positive
Market Momentum
MACD
0.23
Negative
RSI
77.31
Negative
STOCH
96.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRTBY, the sentiment is Positive. The current price of 5.51 is above the 20-day moving average (MA) of 4.79, above the 50-day MA of 4.42, and above the 200-day MA of 3.95, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 77.31 is Negative, neither overbought nor oversold. The STOCH value of 96.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRTBY.

Waertsilae Oyj Abp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$26.17B11.5016.72%1.10%-8.23%54.92%
80
Outperform
$16.31B26.5822.99%0.39%15.49%50.22%
76
Outperform
$13.93B29.2112.73%1.52%1.66%-17.18%
76
Outperform
$12.59B25.4619.27%0.84%6.99%23.25%
72
Outperform
$10.24B43.683.69%0.91%-10.19%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
64
Neutral
$9.03B26.6314.29%8.07%58.67%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WRTBY
Waertsilae Oyj Abp
5.63
1.58
39.01%
DOV
Dover
186.63
3.39
1.85%
GNRC
Generac Holdings
153.39
-6.04
-3.79%
IEX
IDEX
183.66
-19.92
-9.78%
ITT
ITT
158.97
19.57
14.04%
RRX
Regal Rexnord
154.44
0.45
0.29%
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: Jul 19, 2025