Waertsilae Oyj Abp (WRTBY) AI Stock Analysis

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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)

Market Cap

$16.31B

Dividend Yield0.39%

Average Volume (3M)69.00

Price to Earnings (P/E)26.6

Beta (1Y)1.16

Revenue Growth15.49%

EPS Growth50.22%

CountryUS

Employees18,490

SectorIndustrials

Sector Strength94

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.05

Shares Outstanding2,958,615,000

10 Day Avg. Volume0

30 Day Avg. Volume69

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 Target

$4.50

Price Target Upside-18.33% Downside

Rating ConsensusHold

Number of Analyst Covering1

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

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 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
DOV	80 Outperform	$26.17B	11.50	16.72%	1.10%	-8.23%	54.92%
WRTBY	80 Outperform	$16.31B	26.58	22.99%	0.39%	15.49%	50.22%
IEX	76 Outperform	$13.93B	29.21	12.73%	1.52%	1.66%	-17.18%
ITT	76 Outperform	$12.59B	25.46	19.27%	0.84%	6.99%	23.25%
RRX	72 Outperform	$10.24B	43.68	3.69%	0.91%	-10.19%	―
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
GNRC	64 Neutral	$9.03B	26.63	14.29%	―	8.07%	58.67%

* Industrials Sector Average

Performance Comparison

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

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