CPSE:ORSTED

Stock Analysis Report

Executive Summary

Ørsted A/S, together with its subsidiaries, develops, constructs, and operates offshore wind farms, bioenergy plants, and waste-to-energy solutions.


Snowflake Analysis

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Ørsted's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

8.8%

ORSTED

4.3%

DK Electric Utilities

4.9%

DK Market


1 Year Return

30.8%

ORSTED

-2.4%

DK Electric Utilities

-0.6%

DK Market

Return vs Industry: ORSTED exceeded the Danish Electric Utilities industry which returned -2.4% over the past year.

Return vs Market: ORSTED exceeded the Danish Market which returned -0.6% over the past year.


Shareholder returns

ORSTEDIndustryMarket
7 Day8.8%4.3%4.9%
30 Day-5.1%-17.0%-9.7%
90 Day-4.3%-14.0%-12.1%
1 Year32.7%30.8%1.5%-2.4%2.4%-0.6%
3 Year160.1%145.3%36.3%19.4%30.0%19.0%
5 Yearn/a26.3%-2.1%24.1%8.2%

Price Volatility Vs. Market

How volatile is Ørsted's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ørsted undervalued compared to its fair value and its price relative to the market?

42.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ORSTED (DKK659.6) is trading above our estimate of fair value (DKK289.95)

Significantly Below Fair Value: ORSTED is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ORSTED is poor value based on its PE Ratio (42.2x) compared to the Electric Utilities industry average (10.1x).

PE vs Market: ORSTED is poor value based on its PE Ratio (42.2x) compared to the Danish market (12x).


Price to Earnings Growth Ratio

PEG Ratio: ORSTED is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: ORSTED is overvalued based on its PB Ratio (3.2x) compared to the XE Electric Utilities industry average (0.8x).


Next Steps

Future Growth

How is Ørsted forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORSTED's forecast earnings growth (9.2% per year) is above the savings rate (-0.3%).

Earnings vs Market: ORSTED's earnings (9.2% per year) are forecast to grow slower than the Danish market (12% per year).

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

Revenue vs Market: ORSTED's revenue (0.7% per year) is forecast to grow slower than the Danish market (6% per year).

High Growth Revenue: ORSTED's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ORSTED's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Ørsted performed over the past 5 years?

46.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORSTED has high quality earnings.

Growing Profit Margin: ORSTED's current net profit margins (9.3%) are lower than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: ORSTED has become profitable over the past 5 years, growing earnings by 46.8% per year.

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

Earnings vs Industry: ORSTED had negative earnings growth (-63.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (7.2%).


Return on Equity

High ROE: ORSTED's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Ørsted's financial position?


Financial Position Analysis

Short Term Liabilities: ORSTED's short term assets (DKK76.9B) exceed its short term liabilities (DKK38.3B).

Long Term Liabilities: ORSTED's short term assets (DKK76.9B) exceed its long term liabilities (DKK65.0B).


Debt to Equity History and Analysis

Debt Level: ORSTED's debt to equity ratio (41.1%) is considered high.

Reducing Debt: ORSTED's debt to equity ratio has reduced from 59.7% to 41.1% over the past 5 years.

Debt Coverage: ORSTED's debt is well covered by operating cash flow (34.9%).

Interest Coverage: ORSTED's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: ORSTED's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is Ørsted's current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORSTED's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the Danish market (1.77%).

High Dividend: ORSTED's dividend (1.59%) is low compared to the top 25% of dividend payers in the Danish market (5.63%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ORSTED has been paying a dividend for less than 10 years.

Growing Dividend: ORSTED's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.2%), ORSTED's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORSTED's dividends in 3 years are forecast to be covered by earnings (62.2% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Henrik Poulsen (52yo)

7.58s

Tenure

ø16,693,000

Compensation

Mr. Henrik Poulsen, M.Sc. has been the President and Chief Executive Officer at Ørsted A/S since August 27, 2012. Mr. Poulsen serves as the Chief Executive Officer and Member of Management Board at DONG En ...


CEO Compensation Analysis

Compensation vs Market: Henrik's total compensation ($USD2.48M) is about average for companies of similar size in the Danish market ($USD3.26M).

Compensation vs Earnings: Henrik's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Henrik Poulsen
President & CEO7.58yrsø16.69mno data
Marianne Wiinholt
Chief Financial Officer6.42yrsø9.29mno data
Allan Andersen
Head of Head of Investor Relations and Head of Group Treasury & Risk Managementno datano datano data
Martin Barlebo
Head of Communications5yrsno datano data
Ole Sørensen
Executive VP and Executive VP of Onshore Windno datano datano data
Henriette Ellekrog
Executive VP & Chief Human Resources Officer0.42yrno datano data
Thomas Dalsgaard
Executive Vice President of CEO Bioenergyno datano datano data
Morten Buchgreitz
Executive VP & CEO of Customer Solutions7yrsno datano data
Jakob Boss
Senior Vice President of Corporate Strategy & Stakeholder Relations4.75yrsno datano data
Anders Pedersen
Head of Aalborg Office3.92yrsno datano data

5.0yrs

Average Tenure

52yo

Average Age

Experienced Management: ORSTED's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dieter Wemmer
Independent Director2yrsø505.00kno data
Lene Skole-Sørensen
Independent Deputy Chairman5yrsø733.00k0.00028% DKK775.7k
Thomas Andersen
Independent Chairman of the Board5.58yrsø1.11m0.00013% DKK360.1k
Poul Dreyer
Employee Representative Director6yrsø326.00k0.00020% DKK554.0k
Hanne Andersen
Employee Elected Board Member12.92yrsø326.00k0.00057% DKK1.6m
Mogens Vinther
Board Observerno dataø75.00kno data
Lynda Armstrong
Independent Director5yrsø394.00kno data
Pia Gjellerup
Directorno dataø102.00kno data
Benny Gøbel
Employee Representative Director9.17yrsø326.00k0.00026% DKK720.3k
Michael Bruun
Board Observerno datano datano data

5.6yrs

Average Tenure

60yo

Average Age

Experienced Board: ORSTED's board of directors are considered experienced (5.6 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

Ørsted A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ørsted A/S
  • Ticker: ORSTED
  • Exchange: CPSE
  • Founded: 1972
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ø277.022b
  • Shares outstanding: 419.99m
  • Website: https://orsted.com

Number of Employees


Location

  • Ørsted A/S
  • Kraftværksvej 53 - Skærbæk
  • Fredericia
  • Region of Southern Denmark
  • 7000
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
94337054BDL (Bourse de Luxembourg)6.25%-FRN SUB 26/06/3013 EUR1000 'NC10'LUEURJun 2013
A1HL4HBST (Boerse-Stuttgart)6.25%-FRN SUB 26/06/3013 EUR1000 'NC10'DEEURJun 2013
D2GFDB (Deutsche Boerse AG)6.25%-FRN SUB 26/06/3013 EUR1000 'NC10'DEEURJun 2013
ORSTEDCPSE (OMX Nordic Exchange Copenhagen)YesShare CapitalDKDKKJun 2016
D2GDB (Deutsche Boerse AG)YesShare CapitalDEEURJun 2016
0RHELSE (London Stock Exchange)YesShare CapitalGBDKKJun 2016
ORSTECBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBDKKJun 2016
DOGE.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDJun 2016
ORSTED NBMV (Bolsa Mexicana de Valores)YesShare CapitalMXMXNJun 2016
DNNG.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDAug 2016

Biography

Ørsted A/S, together with its subsidiaries, develops, constructs, and operates offshore wind farms, bioenergy plants, and waste-to-energy solutions. It operates through Offshore, Onshore, and Market & Bioenergy segments. The Offshore segment develops, constructs, owns, and operates offshore wind farms in the United Kingdom, Germany, Denmark, the Netherlands, the United States, and Taiwan. The Onshore segment develops, constructs, owns, and operates onshore wind and solar farms in the United States and a storage solution in the United Kingdom. The Market & Bioenergy segment engages in the generation of heat and power from combined heat and power plants in Denmark, sale of power and gas in wholesale and retail markets, and distribution of power in Denmark, as well as optimization and hedging of energy portfolio. The company was formerly known as DONG Energy A/S and changed its name to Ørsted A/S in November 2017. Ørsted A/S was founded in 1972 and is headquartered in Fredericia, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 23:46
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.