Waertsilae Oyj Abp (WRTBY) AI Stock Analysis

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Waertsilae Oyj Abp

(OTC:WRTBY)

Rating:65Neutral

Price Target:

$4.50

▼(-3.85%Downside)

Waertsilae Oyj Abp's strong financial performance is the most significant factor, supported by robust revenue growth and profitability. However, technical indicators suggest overbought conditions, posing a risk of short-term price correction. The high P/E ratio raises concerns about overvaluation, affecting the overall attractiveness of the stock.

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

Market Cap

$13.81B

Dividend Yield1.95%

Average Volume (3M)8.00

Price to Earnings (P/E)23.7

Beta (1Y)1.18

Revenue Growth12.86%

EPS Growth87.01%

CountryUS

Employees18,490

SectorIndustrials

Sector Strength86

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.04

Shares Outstanding2,958,615,000

10 Day Avg. Volume26

30 Day Avg. Volume8

Financial Highlights & Ratios

PEG Ratio-0.27

Price to Book (P/B)16.81

Price to Sales (P/S)0.00

P/FCF Ratio55.50

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

Waertsilae Oyj Abp Business Overview & Revenue Model

Company DescriptionWärtsilä Oyj Abp is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. Headquartered in Helsinki, Finland, the company operates through three main business segments: Energy, Marine Power, and Marine Systems. Wärtsilä's core offerings include power plants, power systems, and integrated solutions for the marine and energy industries, focusing on enhancing environmental and economic performance through innovative services and technologies.

How the Company Makes MoneyWärtsilä makes money through a diversified revenue model primarily driven by the sale of equipment, services, and solutions in the marine and energy sectors. In the Energy segment, the company generates revenue by providing power plants and energy systems that run on various fuels, including renewables and energy storage solutions. The Marine Power and Marine Systems segments contribute to revenue through the sale of engines, propulsion systems, and integrated solutions for vessels, along with maintenance services that ensure operational efficiency and compliance with environmental regulations. Additionally, Wärtsilä benefits from long-term service agreements and partnerships with ship owners, operators, and energy companies, which provide consistent revenue streams and support the company's commitment to sustainable innovation.

Waertsilae Oyj Abp Earnings Call Summary

Earnings Call Date:Apr 25, 2025

(Q4-2024)

% Change Since: 33.33%|

Next Earnings Date:Jul 18, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong financial performance with record-breaking metrics in order intake and cash flow. Positive developments in both marine and energy sectors, coupled with notable technology partnerships, are key highlights. However, geopolitical uncertainties and an ongoing strategic review of the energy storage business present challenges. Despite these lowlights, the overall sentiment remains optimistic.

Q4-2024 Updates

Positive Updates

Record-Breaking Order Intake and Cash Flow

Q4 2024 saw an all-time high order book at EUR8.3 billion with order intake increasing by 34%. The company also achieved a record operating cash flow of EUR1.208 billion for the year.

Strong Performance in Services and Equipment

Services order intake was up 15% and net sales increased by 12% in Q4. Equipment order intake surged by 51% while net sales increased by 13%.

Positive Market Sentiments in Marine and Energy

Marine order intake increased by 9% with net sales up 12%. Energy sector experienced a 54% increase in order intake and 14% increase in net sales.

Technology and Partnership Highlights

First 46TS installation contracted for a 120-megawatt plant in Kazakhstan and propulsion package for the world's largest methanol-ready cement carrier vessels booked in Q4.

Negative Updates

Geopolitical Risks and Tariff Uncertainty

Elevated geopolitical risks created uncertainty, impacting decision-making, particularly in the energy sector regarding potential US tariffs.

Less Favorable Project Mix in Marine

Marine segment experienced a less favorable project mix within equipment, affecting profitability negatively in Q4.

Strategic Review Ongoing for Energy Storage

Ongoing strategic review for the energy storage business with no clear outcome yet, indicating uncertainty in the segment.

Company Guidance

In the recent call, Wärtsilä provided strong guidance for Q4 2024 and the full year, highlighting significant growth across various metrics. The company reported an all-time high order book of EUR 8.3 billion, with order intake increasing by 34% and net sales up by 13% in Q4. Comparable operating results improved by 18%, and cash flow from operating activities reached EUR 437 million. Full-year order intake surpassed EUR 8 billion for the first time, marking a 14% increase, while services and equipment saw growth of 8% and 20%, respectively. The company's profitability metrics showed improvement, with operating results climbing from 7.8% to 12.4% in Q4, and from 6.7% to 11.1% for the full year. Wärtsilä also noted positive market sentiment in its marine and energy sectors, driven by increased demand for new ships and renewable energy transitions, respectively.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.69B	6.45B	6.02B	5.84B	4.78B	4.60B
Gross Profit	4.27B	2.98B	2.60B	2.17B	2.09B	1.97B
EBITDA	909.00M	891.00M	561.00M	143.00M	471.00M	387.00M
Net Income	541.00M	503.00M	258.00M	-59.00M	194.00M	134.00M
Balance Sheet
Total Assets	6.34B	7.69B	6.80B	6.61B	6.52B	6.23B
Cash, Cash Equivalents and Short-Term Investments	501.00M	1.55B	819.00M	461.00M	964.00M	919.00M
Total Debt	1.16B	766.00M	859.00M	949.00M	972.00M	1.33B
Total Liabilities	4.08B	5.16B	4.57B	4.46B	4.20B	4.04B
Stockholders Equity	2.24B	2.52B	2.23B	2.13B	2.31B	2.18B
Cash Flow
Free Cash Flow	978.00M	1.04B	674.00M	-218.00M	589.00M	566.00M
Operating Cash Flow	1.14B	1.21B	822.00M	-62.00M	731.00M	681.00M
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 Price4.68

Price Trends

50DMA

4.13

Positive

100DMA

3.93

Positive

200DMA

3.92

Positive

Market Momentum

MACD

0.16

Negative

RSI

76.25

Negative

STOCH

91.17

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 4.68 is above the 20-day moving average (MA) of 4.51, above the 50-day MA of 4.13, and above the 200-day MA of 3.92, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 76.25 is Negative, neither overbought nor oversold. The STOCH value of 91.17 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
DOV	79 Outperform	$25.80B	11.33	17.45%	1.09%	-5.86%	59.79%
IEX	76 Outperform	$13.76B	28.85	12.73%	1.56%	1.66%	-17.18%
ITT	76 Outperform	$12.68B	25.64	19.27%	0.88%	6.99%	23.25%
RRX	72 Outperform	$10.07B	43.24	3.69%	0.92%	-10.19%	―
Sector *	65 Neutral	$10.69B	15.75	5.51%	1.90%	2.72%	-26.43%
WRTBY	65 Neutral	$13.81B	23.74	23.89%	1.95%	12.86%	87.01%
GNRC	64 Neutral	$8.90B	26.23	14.29%	―	8.07%	58.67%

* Industrials Sector Average

Performance Comparison

WRTBY

Waertsilae Oyj Abp

4.72

0.85

21.96%

DOV

Dover

188.63

13.85

7.92%

GNRC

Generac Holdings

152.37

11.87

8.45%

IEX

IDEX

181.25

-10.81

-5.63%

ITT

161.13

35.35

28.10%

RRX

Regal Rexnord

151.70

20.22

15.38%

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 10, 2025