NOT FOR DISTRIBUTION
Header cover image

Market Cap

kr.366.3b

Last Updated

2021/05/05 17:02 UTC

Data Sources

Company Financials +

Executive Summary

Ørsted A/S, together with its subsidiaries, develops, constructs, owns, and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants. More Details


Snowflake Analysis

Adequate balance sheet with proven 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 is not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ORSTED's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-9.1%

ORSTED

-1.8%

DK Electric Utilities

-0.4%

DK Market


1 Year Return

27.4%

ORSTED

32.8%

DK Electric Utilities

33.6%

DK Market

Return vs Industry: ORSTED underperformed the Danish Electric Utilities industry which returned 32.1% over the past year.

Return vs Market: ORSTED underperformed the Danish Market which returned 32.9% over the past year.


Shareholder returns

ORSTEDIndustryMarket
7 Day-9.1%-1.8%-0.4%
30 Day-14.2%-0.2%4.3%
90 Day-23.3%-1.8%4.0%
1 Year28.8%27.4%37.6%32.8%37.1%33.6%
3 Year129.8%119.3%65.0%47.1%60.6%48.2%
5 Yearn/a107.1%63.8%81.9%58.0%

Long-Term 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?

33.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ORSTED (DKK879) is trading above our estimate of fair value (DKK371.82)

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 (33.9x) compared to the XE Electric Utilities industry average (13.1x).

PE vs Market: ORSTED is poor value based on its PE Ratio (33.9x) compared to the Danish market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: ORSTED is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: ORSTED is overvalued based on its PB Ratio (3.9x) compared to the XE Electric Utilities industry average (1x).


Future Growth

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

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORSTED's forecast earnings growth (5.8% per year) is above the savings rate (0.1%).

Earnings vs Market: ORSTED's earnings (5.8% per year) are forecast to grow slower than the Danish market (10.9% per year).

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

Revenue vs Market: ORSTED's revenue (9.3% per year) is forecast to grow faster than the Danish market (6.9% per year).

High Growth Revenue: ORSTED's revenue (9.3% 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 (9.8%).


Past Performance

How has Ørsted performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORSTED has a large one-off gain of DKK10.7B impacting its March 31 2021 financial results.

Growing Profit Margin: ORSTED's current net profit margins (21.4%) are higher than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: ORSTED's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: ORSTED's earnings growth over the past year (26.1%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: ORSTED earnings growth over the past year (26.1%) exceeded the Electric Utilities industry 2.3%.


Return on Equity

High ROE: ORSTED's Return on Equity (12.2%) is considered low.


Financial Health

How is Ørsted's financial position?


Financial Position Analysis

Short Term Liabilities: ORSTED's short term assets (DKK70.1B) exceed its short term liabilities (DKK47.2B).

Long Term Liabilities: ORSTED's short term assets (DKK70.1B) exceed its long term liabilities (DKK67.3B).


Debt to Equity History and Analysis

Debt Level: ORSTED's debt to equity ratio (47.1%) is considered high.

Reducing Debt: ORSTED's debt to equity ratio has reduced from 62.6% to 47.1% over the past 5 years.

Debt Coverage: ORSTED's debt is well covered by operating cash flow (55.1%).

Interest Coverage: ORSTED's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Dividend

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

1.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORSTED's dividend (1.31%) is higher than the bottom 25% of dividend payers in the Danish market (1.19%).

High Dividend: ORSTED's dividend (1.31%) is low compared to the top 25% of dividend payers in the Danish market (3.5%).


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.3%), ORSTED's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORSTED's dividends in 3 years are forecast to be covered by earnings (60.2% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Mads Nipper (54 yo)

0.33

Tenure

Mr. Mads Nipper serves as Chief Executive Officer and Group President at Ørsted A/S since January 1, 2021 and also serves as Member of its Executive Board. Mr. Nipper serves as a Member of Advisory Board a...


Leadership Team

Experienced Management: ORSTED's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: ORSTED's board of directors are considered experienced (4.2 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: kr.366.300b
  • Shares outstanding: 420.07m
  • Website: https://www.orsted.com

Number of Employees


Location

  • Ørsted A/S
  • Kraftvaerksvej 53
  • Skaerbaek
  • Fredericia
  • Region of Southern Denmark
  • 7000
  • Denmark

Listings


Biography

Ørsted A/S, together with its subsidiaries, develops, constructs, owns, and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants. It operates through Offsh...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/05 17:02
End of Day Share Price2021/05/05 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.