CPSE:VWS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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

4.3%

VWS

0.8%

DK Electrical

1.4%

DK Market


1 Year Return

90.8%

VWS

33.5%

DK Electrical

24.5%

DK Market

Return vs Industry: VWS exceeded the Danish Electrical industry which returned 31.7% over the past year.

Return vs Market: VWS exceeded the Danish Market which returned 25.7% over the past year.


Shareholder returns

VWSIndustryMarket
7 Day4.3%0.8%1.4%
30 Day13.9%15.6%6.3%
90 Day27.3%13.5%6.5%
1 Year93.3%90.8%36.7%33.5%26.8%24.5%
3 Year255.2%238.9%52.9%40.9%52.4%40.6%
5 Year192.9%170.7%98.4%-2.6%52.5%33.2%

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?

67.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VWS (DKK1243) is trading above our estimate of fair value (DKK858.92)

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 (67.3x) compared to the XE Electrical industry average (29.2x).

PE vs Market: VWS is poor value based on its PE Ratio (67.3x) compared to the Danish market (17x).


Price to Earnings Growth Ratio

PEG Ratio: VWS is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: VWS is overvalued based on its PB Ratio (9.8x) compared to the XE Electrical industry average (3x).


Next Steps

Future Growth

How is Vestas Wind Systems forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VWS's forecast earnings growth (20.3% per year) is above the savings rate (0.3%).

Earnings vs Market: VWS's earnings (20.3% per year) are forecast to grow faster than the Danish market (11.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VWS's revenue (1.1% per year) is forecast to grow slower than the Danish market (6.4% per year).

High Growth Revenue: VWS's revenue (1.1% 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 (23.6%)


Next Steps

Past Performance

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

-7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VWS has high quality earnings.

Growing Profit Margin: VWS's current net profit margins (3.2%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: VWS's earnings have declined by 7.7% 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 (-24.3%) over the past year, making it difficult to compare to the Electrical industry average (-5.4%).


Return on Equity

High ROE: VWS's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Vestas Wind Systems's financial position?


Financial Position Analysis

Short Term Liabilities: VWS's short term assets (€10.6B) exceed its short term liabilities (€9.4B).

Long Term Liabilities: VWS's short term assets (€10.6B) exceed its long term liabilities (€1.9B).


Debt to Equity History and Analysis

Debt Level: VWS's debt to equity ratio (22.1%) is considered satisfactory.

Reducing Debt: VWS's debt to equity ratio has increased from 17.6% to 22.1% over the past 5 years.

Debt Coverage: VWS's debt is well covered by operating cash flow (140.1%).

Interest Coverage: VWS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VWS's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the Danish market (1.13%).

High Dividend: VWS's dividend (0.64%) is low compared to the top 25% of dividend payers in the Danish market (3.75%).


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 (42.7%), 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 (30.3% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Henrik Andersen (53 yo)

1.25yrs

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...


Leadership Team

NamePositionTenureCompensationOwnership
Henrik Andersen
Group President & CEO1.25yrs€1.10mno data
Kim Thomsen
HR Business Partner of People & Culture and Director24.5yrs€650.00k0.0016%
€ 3.9m
Marika Fredriksson
Executive VP & CFO7.5yrsno datano data
Tommy Nielsen
Executive VP & COO0.50yrno datano data
Anders Nielsen
Executive VP & CTO0.50yrno datano data
Patrik Setterberg
VP & Head of Investor Relationsno datano datano data
Anders Riis
Director & Head of Communicationsno datano datano data
Morten Dyrholm
Group Senior Vice President of Marketingno datano datano data
Kerstin Knapp
Executive Vice President of People & Culture0.83yrno datano data
Torben Bonde
CIO and Senior Vice President of Group IT21.83yrsno datano data
Anders Vedel
Chief Scientific Advisor0.50yrno datano data
Danny Nielsen
Chief Operating Officer of Vestas Asia Pacific & China6.58yrsno datano data

1.3yrs

Average Tenure

57yo

Average Age

Experienced Management: VWS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kim Thomsen
HR Business Partner of People & Culture and Director24.5yrs€650.00k0.0016%
€ 3.9m
Karl-Henrik Sundström
Director0.58yrno datano data
Bert Ake Nordberg
Independent Chairman8.67yrs€2.14m0.0075%
€ 18.6m
Bruce Grant
Independent Director1.58yrsno datano data
Lars Josefsson
Independent Deputy Chairman8.67yrs€1.83m0.0018%
€ 4.5m
Sussie Agerbo
Director15yrs€400.00k0.00041%
€ 1.0m
Carsten Bjerg
Independent Director9.67yrs€909.43k0.0021%
€ 5.1m
Anders Runevad
Director0.58yrno datano data
Eva Merete Berneke
Independent Director1.58yrsno data0.00051%
€ 1.3m
Helle Thorning-Schmidt
Independent Director1.58yrsno datano data
Michael Lisbjerg
Director12.58yrs€400.00k0.00043%
€ 1.1m
Pia Jensen
Employee Representative Director0.50yrno datano data

5.1yrs

Average Tenure

60yo

Average Age

Experienced Board: VWS's board of directors are considered experienced (5.1 years average tenure).


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.


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.249.776b
  • Shares outstanding: 195.83m
  • 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
VWSCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKMay 1998
0NMKLSE (London Stock Exchange)YesOrdinary SharesGBDKKMay 1998
VWSXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURMay 1998
VWSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1998
VWSCBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBDKKMay 1998
VWSSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFMay 1998
VWS NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMay 1998
VWSWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMay 1998
VWDR.YOTCPK (Pink Sheets LLC)UNSP ADRUSUSDJan 2007
VWSADB (Deutsche Boerse AG)UNSP ADRDEEURJan 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 powe...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 18:01
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.