Vestas Wind Systems (CPSE:VWS) - Share price, News & Analysis

VWS fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

VWS Stock Overview

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

Rewards

Trading at 10.4% below our estimate of its fair value

Earnings are forecast to grow 74% per year

Risk Analysis

No risks detected for VWS from our risk checks.

Vestas Wind Systems Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vestas Wind Systems
Historical stock prices
Current Share Price	kr.164.50
52 Week High	kr.285.70
52 Week Low	kr.141.66
Beta	0.88
1 Month Change	-2.12%
3 Month Change	-12.31%
1 Year Change	-29.67%
3 Year Change	45.06%
5 Year Change	36.86%
Change since IPO	2,641.67%

Recent News & Updates

Jun 10

Vestas Wind Systems (CPH:VWS) May Have Issues Allocating Its Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...

May 06

Why Vestas Wind Systems A/S (CPH:VWS) Could Be Worth Watching

Today we're going to take a look at the well-established Vestas Wind Systems A/S ( CPH:VWS ). The company's stock...

Shareholder Returns

	VWS	DK Electrical	DK Market
7D	1.3%	1.6%	4.8%
1Y	-29.7%	-28.2%	-1.2%

Return vs Industry: VWS underperformed the Danish Electrical industry which returned -28.2% over the past year.

Return vs Market: VWS underperformed the Danish Market which returned -1.2% over the past year.

Price Volatility

Is VWS's price volatile compared to industry and market?
VWS volatility
VWS Average Weekly Movement	7.8%
Electrical Industry Average Movement	6.7%
Market Average Movement	6.4%
10% most volatile stocks in DK Market	10.9%
10% least volatile stocks in DK Market	3.5%

Stable Share Price: VWS is not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: VWS's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1898	29,274	Henrik Andersen	https://www.vestas.com

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 power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities.

Vestas Wind Systems Fundamentals Summary

How do Vestas Wind Systems's earnings and revenue compare to its market cap?
VWS fundamental statistics
Market Cap	€22.23b
Earnings (TTM)	-€530.00m
Revenue (TTM)	€16.11b

1.4x

P/S Ratio

-41.9x

P/E Ratio

Is VWS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VWS income statement (TTM)
Revenue	€16.11b
Cost of Revenue	€14.63b
Gross Profit	€1.48b
Other Expenses	€2.01b
Earnings	-€530.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)	-0.53
Gross Margin	9.16%
Net Profit Margin	-3.29%
Debt/Equity Ratio	50.2%

How did VWS perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

-10%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is VWS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VWS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for VWS. This is calculated by dividing VWS's market cap by their current preferred multiple.
What is VWS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€22.23b

VWS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	26.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does VWS's PS Ratio compare to its peers?

VWS PS Ratio vs Peers

The above table shows the PS ratio for VWS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	61.9x

Forward PS

Price-To-Sales vs Peers: VWS is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (61.9x).

Price to Earnings Ratio vs Industry

How does VWS's PE Ratio compare vs other companies in the Electrical Industry?

Price-To-Sales vs Industry: VWS is good value based on its Price-To-Sales Ratio (1.4x) compared to the European Electrical industry average (1.8x)

Price to Sales Ratio vs Fair Ratio

What is VWS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VWS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.4x
Fair PS Ratio	1.1x

Price-To-Sales vs Fair Ratio: VWS is expensive based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

Share Price vs Fair Value

What is the Fair Price of VWS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VWS (DKK164.5) is trading below our estimate of fair value (DKK183.59)

Significantly Below Fair Value: VWS is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VWS's PEG Ratio to determine if it is good value.

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

74.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VWS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.09%).

Earnings vs Market: VWS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VWS is expected to become profitable in the next 3 years.

Revenue vs Market: VWS's revenue (6.9% per year) is forecast to grow faster than the Danish market (6.5% per year).

High Growth Revenue: VWS's revenue (6.9% 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 (19.9%).

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Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-20.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VWS is currently unprofitable.

Growing Profit Margin: VWS is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: VWS is unprofitable, and losses have increased over the past 5 years at a rate of 20.4% per year.

Accelerating Growth: Unable to compare VWS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VWS is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (26.1%).

Return on Equity

High ROE: VWS has a negative Return on Equity (-13.46%), as it is currently unprofitable.

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Financial Health

How is Vestas Wind Systems's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VWS's short term assets (€13.3B) exceed its short term liabilities (€13.0B).

Long Term Liabilities: VWS's short term assets (€13.3B) exceed its long term liabilities (€3.2B).

Debt to Equity History and Analysis

Debt Level: VWS's net debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: VWS's debt to equity ratio has increased from 15% to 50.2% over the past 5 years.

Debt Coverage: VWS's debt is well covered by operating cash flow (42%).

Interest Coverage: VWS's interest payments on its debt are well covered by EBIT (19.5x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VWS's dividend (0.22%) isn’t notable compared to the bottom 25% of dividend payers in the Danish market (1.45%).

High Dividend: VWS's dividend (0.22%) is low compared to the top 25% of dividend payers in the Danish market (6.62%).

Stability and Growth of Payments

Stable Dividend: VWS is not paying a notable dividend for the Danish market, therefore no need to check if payments are stable.

Growing Dividend: VWS is not paying a notable dividend for the Danish market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: VWS is not paying a notable dividend for the Danish market.

Cash Payout to Shareholders

Cash Flow Coverage: VWS is paying a dividend but the company has no free cash flows.

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Management

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

2.1yrs

Average management tenure

CEO

Henrik Andersen (54 yo)

2.83yrs

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 considered experienced (2.1 years average tenure).

Board Members

Experienced Board: VWS's board of directors are not considered experienced ( 2.7 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31