CPSE:VWS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless 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


Market Performance


7 Day Return

9.5%

CPSE:VWS

5.0%

DK Electrical

-2.3%

DK Market


1 Year Return

32.9%

CPSE:VWS

5.1%

DK Electrical

5.6%

DK Market

VWS outperformed the Electrical industry which returned 5.1% over the past year.

VWS outperformed the Market in Denmark which returned 5.6% over the past year.


Share holder returns

VWSIndustryMarket
7 Day9.5%5.0%-2.3%
30 Day9.6%12.0%0.3%
90 Day-4.0%6.4%1.6%
1 Year34.6%32.9%8.1%5.1%8.8%5.6%
3 Year6.5%1.2%18.5%8.3%31.8%20.8%
5 Year158.2%138.6%47.0%-29.6%60.2%36.7%

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 based on future cash flows and its price relative to the stock market?

28.78x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Vestas Wind Systems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Vestas Wind Systems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Vestas Wind Systems is overvalued based on earnings compared to the Europe Electrical industry average.

Vestas Wind Systems is overvalued based on earnings compared to the Denmark market.


Price Based on Expected Growth

Vestas Wind Systems is poor value based on expected growth next year.


Price Based on Value of Assets

Vestas Wind Systems is overvalued based on assets compared to the Europe Electrical industry average.


Next Steps

Future Growth

How is Vestas Wind Systems expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vestas Wind Systems's revenue is expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).

Vestas Wind Systems's earnings are expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).

Vestas Wind Systems's revenue growth is positive but not above the Denmark market average.

Vestas Wind Systems's earnings growth is positive but not above the Denmark market average.

Vestas Wind Systems's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Vestas Wind Systems is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Vestas Wind Systems's year on year earnings growth rate has been positive over the past 5 years.

Vestas Wind Systems's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Vestas Wind Systems's 1-year earnings growth is negative, it can't be compared to the Europe Electrical industry average.


Return on Equity

Vestas Wind Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Vestas Wind Systems used its assets less efficiently than the Europe Electrical industry average last year based on Return on Assets.


Return on Capital Employed

Vestas Wind Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Vestas Wind Systems's financial position?


Financial Position Analysis

Vestas Wind Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Vestas Wind Systems's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Vestas Wind Systems's level of debt (19.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (30.7% vs 19.2% today).

Debt is well covered by operating cash flow (165.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 23.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 17x debt.


Next Steps

Dividend

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

1.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Vestas Wind Systems's pays a lower dividend yield than the bottom 25% of dividend payers in Denmark (1.67%).

Vestas Wind Systems's dividend is below the markets top 25% of dividend payers in Denmark (5.03%).

Vestas Wind Systems has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Vestas Wind Systems only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).


Next Steps

Management

What is the CEO of Vestas Wind Systems's salary, the management and board of directors tenure and is there insider trading?

7.2yrs

Average management tenure


CEO

Henrik Andersen (52yo)

0.08yrs

Tenure

€1,100,000

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 ...


Management Age and Tenure

7.2yrs

Average Tenure

56yo

Average Age

The average tenure for the Vestas Wind Systems management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.5yrs

Average Tenure

59yo

Average Age

The tenure for the Vestas Wind Systems board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Henrik Andersen (52yo)

    Group President & CEO

    • Tenure: 0.08yrs
    • Compensation: €1.10m
  • Jean-Marc Lechêne (61yo)

    COO and Executive VP of Manufacturing & Global Procurement

    • Tenure: 7.2yrs
  • Kim Thomsen (56yo)

    HR Business Partner of People & Culture and Director

    • Tenure: 23.3yrs
    • Compensation: €650.00k
  • Marika Fredriksson (56yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
  • Juan Aralucey De Azagra (56yo)

    Executive Vice President of Sales

    • Tenure: 7.6yrs
  • Torben Bonde

    CIO and Senior Vice President of Group IT

    • Tenure: 20.7yrs
  • Patrik Setterberg

    VP & Head of Investor Relations

    • Tenure: 0yrs
  • Anders Vedel (62yo)

    Executive Vice President of Technology

    • Tenure: 7.6yrs
  • Peter Lindholst (48yo)

    VP of Concept Development

    • Tenure: 3.5yrs
    • Compensation: €400.00k
  • Anders Riis

    Director & Head of Communications

    • Tenure: 0yrs

Board Members

  • Bert Ake Nordberg (63yo)

    Chairman

    • Tenure: 7.5yrs
    • Compensation: €2.14m
  • Henry Sténson (64yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: €483.89k
  • Kim Thomsen (56yo)

    HR Business Partner of People & Culture and Director

    • Tenure: 23.3yrs
    • Compensation: €650.00k
  • Lars Josefsson (66yo)

    Deputy Chairman

    • Tenure: 7.5yrs
    • Compensation: €1.83m
  • Sussie Agerbo (49yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: €400.00k
  • Carsten Bjerg (60yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: €909.43k
  • Eija Pitkänen (58yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: €650.00k
  • Michael Lisbjerg (45yo)

    Director

    • Tenure: 11.4yrs
    • Compensation: €400.00k
  • Torben Sorensen (68yo)

    Director

    • Tenure: 4.5yrs
    • Compensation: €650.00k
  • Peter Lindholst (48yo)

    VP of Concept Development

    • Tenure: 3.5yrs
    • Compensation: €400.00k

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: ø109.510b
  • Shares outstanding: 197.74m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VWSY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1998
VWSWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMay 1998
0NMKLSE (London Stock Exchange)YesOrdinary SharesGBDKKMay 1998
VWS NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 1998
VWSXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURMay 1998
VWSSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFMay 1998
VWSCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKMay 1998
VWSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1998
VWSCBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBDKKMay 1998
VWSADB (Deutsche Boerse AG)ADR EACH REPR 0.33333 SHSDEEURJan 2007
VWDR.YOTCPK (Pink Sheets LLC)ADR EACH REPR 0.33333 SHSUSUSDJan 2007
VWSAXTRA (XETRA Trading Platform)ADR EACH REPR 0.33333 SHSDEEURJan 2007

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 Analysis2019/09/15 20:46
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.