CPSE:VWS

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 10.6% per year

Risk Analysis

No risks detected for VWS from our risk checks.


Snowflake Analysis

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

Stable Share Price: VWS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

VWS

-0.1%

DK Electrical

1.8%

DK Market


1 Year Return

26.0%

VWS

34.8%

DK Electrical

26.7%

DK Market

Return vs Industry: VWS underperformed the Danish Electrical industry which returned 37% over the past year.

Return vs Market: VWS matched the Danish Market which returned 26.3% over the past year.


Shareholder returns

VWSIndustryMarket
7 Day0.5%-0.1%1.8%
30 Day-2.4%-1.0%3.2%
90 Day20.3%11.3%12.7%
1 Year27.6%26.0%38.6%34.8%30.5%26.7%
3 Year46.2%39.0%24.2%13.4%57.1%43.5%
5 Year180.2%159.0%71.1%-21.9%75.0%50.8%

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?

27.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VWS (DKK632.6) is trading above our estimate of fair value (DKK365.17)

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 (26.2x) compared to the Electrical industry average (22.4x).

PE vs Market: VWS is poor value based on its PE Ratio (26.2x) compared to the Danish market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: VWS is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: VWS is overvalued based on its PB Ratio (5.1x) compared to the XE Electrical industry average (2.4x).


Next Steps

Future Growth

How is Vestas Wind Systems forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VWS's forecast earnings growth (10.6% per year) is above the savings rate (-0.3%).

Earnings vs Market: VWS's earnings (11.2% per year) are forecast to grow slower than the Danish market (11.8% per year).

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

Revenue vs Market: VWS's revenue (2.1% per year) is forecast to grow slower than the Danish market (6.4% per year).

High Growth Revenue: VWS's revenue (2.1% 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 high in 3 years time (23.7%)


Next Steps

Past Performance

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

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VWS has high quality earnings.

Growing Profit Margin: VWS's current net profit margins (5.9%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: VWS's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: VWS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VWS had negative earnings growth (-15.8%) over the past year, making it difficult to compare to the Electrical industry average (4.2%).


Return on Equity

High ROE: VWS's Return on Equity (19.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vestas Wind Systems's financial position?


Financial Position Analysis

Short Term Liabilities: VWS's short term assets (€10.4B) exceed its short term liabilities (€9.4B).

Long Term Liabilities: VWS's short term assets (€10.4B) exceed its long term liabilities (€1.6B).


Debt to Equity History and Analysis

Debt Level: VWS's debt to equity ratio (19.1%) is considered satisfactory.

Reducing Debt: VWS's debt to equity ratio has reduced from 28.6% to 19.1% over the past 5 years.

Debt Coverage: VWS's debt is well covered by operating cash flow (214%).

Interest Coverage: VWS's interest payments on its debt are well covered by EBIT (16.8x coverage).


Balance Sheet

Inventory Level: VWS has a high level of physical assets or inventory.

Debt Coverage by Assets: VWS's debt is covered by short term assets (assets are 16.4x debt).


Next Steps

Dividend

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

1.14%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%4.5%industryaverage2.5%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: VWS's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the Danish market (1.53%).

High Dividend: VWS's dividend (1.18%) is low compared to the top 25% of dividend payers in the Danish market (4.62%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), 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 (33.9% payout ratio).


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?

5.8yrs

Average management tenure


CEO

Henrik Andersen (52yo)

0.4yrs

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

5.8yrs

Average Tenure

54yo

Average Age

Experienced Management: VWS's management team is seasoned and experienced (6.7 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: VWS's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Henrik Andersen (52yo)

    Group President & CEO

    • Tenure: 0.4yrs
    • Compensation: €1.10m
  • Kim Thomsen (56yo)

    HR Business Partner of People & Culture

    • Tenure: 5yrs
    • Compensation: €650.00k
  • Marika Fredriksson (56yo)

    Executive VP & CFO

    • Tenure: 6.7yrs
  • Torben Bonde

    CIO and Senior Vice President of Group IT

    • Tenure: 21yrs
  • Patrik Setterberg

    VP & Head of Investor Relations

    • Tommy Nielsen

      Interim EVP of Manufacturing & Global Procurement and Senior VP of Assembly

      • Peter Lindholst (48yo)

        VP of Concept Development

        • Tenure: 3.8yrs
        • Compensation: €400.00k
      • Kerstin Knapp

        Executive Vice President of People & Culture

        • Anders Riis

          Director & Head of Communications

          • Morten Dyrholm

            Group Senior Vice President of Marketing


            Board Members

            • Bert Ake Nordberg (63yo)

              Chairman

              • Tenure: 7.8yrs
              • Compensation: €2.14m
            • Bruce Grant (60yo)

              Director

              • Tenure: 0.8yrs
            • Lars Josefsson (66yo)

              Deputy Chairman

              • Tenure: 7.8yrs
              • Compensation: €1.83m
            • Carsten Bjerg (60yo)

              Independent Director

              • Tenure: 8.8yrs
              • Compensation: €909.43k
            • Eva Merete Berneke (50yo)

              Director

              • Tenure: 0.8yrs
            • Helle Thorning-Schmidt (53yo)

              Director

              • Tenure: 0.8yrs
            • Peter Lindholst (48yo)

              VP of Concept Development

              • Tenure: 3.8yrs
              • Compensation: €400.00k
            • Jens Lund (50yo)

              Independent Director

              • Tenure: 1.8yrs
              • Compensation: €650.00k

            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: ø128.535b
            • Shares outstanding: 195.34m
            • 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)UNSP ADRDEEURJan 2007
            VWDR.YOTCPK (Pink Sheets LLC)UNSP ADRUSUSDJan 2007
            VWSAXTRA (XETRA Trading Platform)UNSP ADRDEEURJan 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 power plants, wind turbines, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/23 20:43
            End of Day Share Price2020/01/23 00:00
            Earnings2019/09/30
            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.