CPSE:VWS

Stock Analysis Report

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Market Cap

kr.247.6b

Last Updated

2021/08/04 21:50 UTC

Data Sources

Company Financials +

Executive Summary

Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. More Details


Snowflake Analysis

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

How has Vestas Wind Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VWS is not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VWS's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

5.9%

VWS

2.8%

DK Electrical

2.0%

DK Market


1 Year Return

45.7%

VWS

42.1%

DK Electrical

34.5%

DK Market

Return vs Industry: VWS exceeded the Danish Electrical industry which returned 42.1% over the past year.

Return vs Market: VWS exceeded the Danish Market which returned 34.5% over the past year.


Shareholder returns

VWSIndustryMarket
7 Day5.9%2.8%2.0%
30 Day0.04%1.3%3.8%
90 Day5.6%3.1%11.6%
1 Year46.6%45.7%44.6%42.1%37.9%34.5%
3 Year210.8%200.7%98.2%84.0%75.6%62.5%
5 Year172.3%153.7%118.5%90.1%112.5%85.2%

Long-Term Price Volatility Vs. Market

How volatile is Vestas Wind Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vestas Wind Systems undervalued compared to its fair value and its price relative to the market?

42.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VWS (DKK245.4) is trading above our estimate of fair value (DKK141.84)

Significantly Below Fair Value: VWS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VWS is poor value based on its PE Ratio (42.4x) compared to the European Electrical industry average (27.5x).

PE vs Market: VWS is poor value based on its PE Ratio (42.4x) compared to the Danish market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: VWS is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: VWS is overvalued based on its PB Ratio (7.2x) compared to the XE Electrical industry average (3.2x).


Future Growth

How is Vestas Wind Systems forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VWS's forecast earnings growth (13.5% per year) is above the savings rate (0.1%).

Earnings vs Market: VWS's earnings (13.5% per year) are forecast to grow faster than the Danish market (7.9% per year).

High Growth Earnings: VWS's earnings are forecast to grow, but not significantly.

Revenue vs Market: VWS's revenue (2.5% per year) is forecast to grow slower than the Danish market (6.7% per year).

High Growth Revenue: VWS's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VWS's Return on Equity is forecast to be low in 3 years time (17.8%).


Past Performance

How has Vestas Wind Systems performed over the past 5 years?

-9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VWS has a high level of non-cash earnings.

Growing Profit Margin: VWS's current net profit margins (5.4%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: VWS's earnings have declined by 9.1% per year over the past 5 years.

Accelerating Growth: VWS's earnings growth over the past year (29%) exceeds its 5-year average (-9.1% per year).

Earnings vs Industry: VWS earnings growth over the past year (29%) underperformed the Electrical industry 32.6%.


Return on Equity

High ROE: VWS's Return on Equity (16.9%) is considered low.


Financial Health

How is Vestas Wind Systems's financial position?


Financial Position Analysis

Short Term Liabilities: VWS's short term assets (€12.4B) exceed its short term liabilities (€11.8B).

Long Term Liabilities: VWS's short term assets (€12.4B) exceed its long term liabilities (€2.6B).


Debt to Equity History and Analysis

Debt Level: VWS's debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: VWS's debt to equity ratio has increased from 18.3% to 21.3% over the past 5 years.

Debt Coverage: VWS's debt is well covered by operating cash flow (75.5%).

Interest Coverage: VWS's interest payments on its debt are well covered by EBIT (18.6x coverage).


Balance Sheet


Dividend

What is Vestas Wind Systems's current dividend yield, its reliability and sustainability?

0.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VWS's dividend (0.69%) isn’t notable compared to the bottom 25% of dividend payers in the Danish market (1.09%).

High Dividend: VWS's dividend (0.69%) is low compared to the top 25% of dividend payers in the Danish market (3.32%).


Stability and Growth of Payments

Stable Dividend: VWS has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VWS's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.3%), VWS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VWS's dividends in 3 years are forecast to be well covered by earnings (28.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Henrik Andersen (54 yo)

2yrs

Tenure

€147,356

Compensation

Mr. Henrik Andersen has been Group President and Chief Executive Officer of Vestas Wind Systems A/S since August 1, 2019. Mr. Andersen served as the Chief Executive Officer of Hempel A/S from March 01, 201...


Leadership Team

Experienced Management: VWS's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: VWS's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

Vestas Wind Systems A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vestas Wind Systems A/S
  • Ticker: VWS
  • Exchange: CPSE
  • Founded: 1898
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: kr.247.583b
  • Shares outstanding: 1.01b
  • Website: https://www.vestas.com

Number of Employees


Location

  • Vestas Wind Systems A/S
  • Hedeager 42
  • Aarhus N
  • Aarhus
  • Central Denmark Region
  • 8200
  • Denmark

Listings


Biography

Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two segments, Power Solutions and Service. The Power Solutions segment sells wind powe...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 21:50
End of Day Share Price2021/08/04 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.