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

Fundamentals

Solid track record with excellent balance sheet.


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

7.1%

ORSTED

0.7%

DK Electric Utilities

2.6%

DK Market


1 Year Return

33.2%

ORSTED

15.8%

DK Electric Utilities

18.9%

DK Market

Return vs Industry: ORSTED exceeded the Danish Electric Utilities industry which returned 15.8% over the past year.

Return vs Market: ORSTED exceeded the Danish Market which returned 18.9% over the past year.


Shareholder returns

ORSTEDIndustryMarket
7 Day7.1%0.7%2.6%
30 Day-2.5%0.4%7.8%
90 Day-6.0%3.9%9.0%
1 Year35.9%33.2%20.4%15.8%22.6%18.9%
3 Year162.1%145.1%66.1%44.7%60.3%46.9%
5 Yearn/a51.0%17.0%80.6%55.2%

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?

11.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ORSTED (DKK608.2) is trading above our estimate of fair value (DKK246.04)

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


Price To Earnings Ratio

PE vs Industry: ORSTED is good value based on its PE Ratio (11.7x) compared to the Electric Utilities industry average (12x).

PE vs Market: ORSTED is good value based on its PE Ratio (11.7x) compared to the Danish market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: ORSTED is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: ORSTED is overvalued based on its PB Ratio (3x) compared to the XE Electric Utilities industry average (0.9x).


Next Steps

Future Growth

How is Ørsted forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORSTED's forecast earnings growth (2.7% per year) is above the savings rate (0.2%).

Earnings vs Market: ORSTED's earnings (2.7% per year) are forecast to grow slower than the Danish market (12.7% per year).

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

Revenue vs Market: ORSTED's revenue (2.7% per year) is forecast to grow slower than the Danish market (6.8% per year).

High Growth Revenue: ORSTED's revenue (2.7% 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 (10.7%).


Next Steps

Past Performance

How has Ørsted performed over the past 5 years?

53.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORSTED has large one-off items impacting its financial results.

Growing Profit Margin: ORSTED's current net profit margins (28.5%) are higher than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: ORSTED has become profitable over the past 5 years, growing earnings by 53.2% per year.

Accelerating Growth: ORSTED's earnings growth over the past year (118.3%) exceeds its 5-year average (53.2% per year).

Earnings vs Industry: ORSTED earnings growth over the past year (118.3%) exceeded the Electric Utilities industry 2.3%.


Return on Equity

High ROE: ORSTED's Return on Equity (25.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ørsted's financial position?


Financial Position Analysis

Short Term Liabilities: ORSTED's short term assets (DKK85.3B) exceeds its short term liabilities (DKK43.2B)

Long Term Liabilities: ORSTED's short term assets (85.3B) exceeds its long term liabilities (64.0B)


Debt to Equity History and Analysis

Debt Level: ORSTED's debt to equity ratio (44.1%) is considered high

Reducing Debt: ORSTED's debt to equity ratio has reduced from 58.2% to 44.1% over the past 5 years.

Debt Coverage: ORSTED's debt is well covered by operating cash flow (41.8%).

Interest Coverage: ORSTED's interest payments on its debt are well covered by EBIT (10.3x 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 2.2x debt).


Next Steps

Dividend

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

1.60%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.6%markettop25%5.0%industryaverage4.0%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: ORSTED's dividend (1.6%) is higher than the bottom 25% of dividend payers in the Danish market (1.59%).

High Dividend: ORSTED's dividend (1.6%) is low compared to the top 25% of dividend payers in the Danish market (4.99%).


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 low payout ratio (18.7%), 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 (56% payout ratio).


Next Steps

Management

What is the CEO of Ørsted's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Henrik Poulsen (52yo)

7.3yrs

Tenure

ø17,344,000

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 ($USD2.56M) is about average for companies of similar size in the Danish market ($USD2.80M).

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


Management Age and Tenure

4.7yrs

Average Tenure

52yo

Average Age

Experienced Management: ORSTED's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

61yo

Average Age

Experienced Board: ORSTED's board of directors are considered experienced (4.7 years average tenure).


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 Poulsen (52yo)

    President & CEO

    • Tenure: 7.3yrs
    • Compensation: ø17.34m
  • Ole Sørensen (47yo)

    Executive VP and Executive VP of Onshore Wind

    • Tenure: 1.8yrs
  • Marianne Wiinholt (54yo)

    Chief Financial Officer

    • Tenure: 6.1yrs
    • Compensation: ø9.65m
  • Thomas Dalsgaard (53yo)

    Executive VP & CEO of Bioenergy and Thermal Power

    • Tenure: 8.1yrs
  • Anders Lindberg (54yo)

    Executive Vice President of Offshore Wind EPC & QHSE

    • Tenure: 1.4yrs
  • Morten Buchgreitz (52yo)

    Executive VP & CEO of Customer Solutions

    • Tenure: 6.7yrs
  • Jakob Boss

    Senior Vice President of Corporate Strategy & Stakeholder Relations

    • Tenure: 4.4yrs
  • Martin Barlebo (48yo)

    Head of Communications

    • Tenure: 4.7yrs
  • Anders Pedersen

    Head of Aalborg Office

    • Tenure: 3.6yrs
  • Daniel Lerup

    Head of Investor Relations and Senior VP of Financial Planning & Tax

    • Tenure: 0yrs

Board Members

  • Peter Korsholm (48yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: ø416.00k
  • Jørgen Kildahl (56yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: ø267.00k
  • Dieter Wemmer (62yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: ø347.00k
  • Lene Skole-Sørensen (60yo)

    Deputy Chairman

    • Tenure: 4.7yrs
    • Compensation: ø744.00k
  • Thomas Andersen (64yo)

    Chairman of the Board

    • Tenure: 5.3yrs
    • Compensation: ø1.09m
  • Mogens Vinther (72yo)

    Board Observer

    • Tenure: 0yrs
    • Compensation: ø75.00k
  • Lynda Armstrong (69yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: ø320.00k
  • Ole Henriksen (47yo)

    First Alternate Employee Representative Director

    • Tenure: 5.7yrs
  • Michael Bruun

    Board Observer

    • Tenure: 0yrs
  • Philippe Lenoble

    Board Observer

    • Tenure: 0yrs

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: ø255.435b
  • 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
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, Bioenergy, and Cu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 21:50
End of Day Share Price2019/11/12 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.