Vestas Wind Systems
Market Cap
ø128.5b
Last Updated
2020/01/23 20:43 UTC
Data Sources
Company Financials +
Executive Summary
Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide.
Rewards
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
| VWS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | -0.1% | 1.8% |
| 30 Day | -2.4% | -1.0% | 3.2% |
| 90 Day | 20.3% | 11.3% | 12.7% |
| 1 Year | 27.6%26.0% | 38.6%34.8% | 30.5%26.7% |
| 3 Year | 46.2%39.0% | 24.2%13.4% | 57.1%43.5% |
| 5 Year | 180.2%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
4 months ago | Simply Wall St
Is Vestas Wind Systems A/S (CPH:VWS) A High Quality Stock To Own?4 months ago | Simply Wall St
Is Vestas Wind Systems A/S’s (CPH:VWS) 17% ROCE Any Good?5 months ago | Simply Wall St
What Should Investors Know About The Future Of Vestas Wind Systems A/S's (CPH:VWS)?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
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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VWSY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 1998 |
| VWS | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | May 1998 |
| 0NMK | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | DKK | May 1998 |
| VWS N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | May 1998 |
| VWS | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | May 1998 |
| VWS | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | May 1998 |
| VWS | CPSE (OMX Nordic Exchange Copenhagen) | Yes | Ordinary Shares | DK | DKK | May 1998 |
| VWS | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 1998 |
| VWSC | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | DKK | May 1998 |
| VWSA | DB (Deutsche Boerse AG) | UNSP ADR | DE | EUR | Jan 2007 | |
| VWDR.Y | OTCPK (Pink Sheets LLC) | UNSP ADR | US | USD | Jan 2007 | |
| VWSA | XTRA (XETRA Trading Platform) | UNSP ADR | DE | EUR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/23 20:43 |
| End of Day Share Price | 2020/01/23 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.