Vestas Wind Systems
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
Rewards
Risk Analysis
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
| VWS | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.9% | 2.8% | 2.0% |
| 30 Day | 0.04% | 1.3% | 3.8% |
| 90 Day | 5.6% | 3.1% | 11.6% |
| 1 Year | 46.6%45.7% | 44.6%42.1% | 37.9%34.5% |
| 3 Year | 210.8%200.7% | 98.2%84.0% | 75.6%62.5% |
| 5 Year | 172.3%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
1 week ago | Simply Wall St
Are Vestas Wind Systems A/S' (CPH:VWS) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?4 weeks ago | Simply Wall St
Announcing: Vestas Wind Systems (CPH:VWS) Stock Increased An Energizing 208% In The Last Three Years1 month ago | Simply Wall St
Is There Now An Opportunity In Vestas Wind Systems A/S (CPH:VWS)?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/08/04 21:50 |
| End of Day Share Price | 2021/08/04 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.