VESTAS WIND SYSTEMS A/S (VWSB.DE) Stock Fundamental Analysis
FRA:VWSB - Deutsche Boerse Ag - DK0061539921 - Common Stock - Currency: EUR
Overall VWSB gets a fundamental rating of 4 out of 10. We evaluated VWSB against 59 industry peers in the Electrical Equipment industry. VWSB has a bad profitability rating. Also its financial health evaluation is rather negative. VWSB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VWSB was profitable.
In the past year VWSB had a positive cash flow from operations.
Of the past 5 years VWSB 4 years were profitable.
VWSB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of VWSB (2.02%) is comparable to the rest of the industry.
VWSB has a Return On Equity of 14.14%. This is in the better half of the industry: VWSB outperforms 80.00% of its industry peers.
VWSB has a Return On Invested Capital (5.91%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 14.14% | ||
| ROIC | 5.91% |
ROA(3y)-1.82%
ROA(5y)-0.11%
ROE(3y)-11.65%
ROE(5y)-3.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VWSB has a better Profit Margin (2.89%) than 65.00% of its industry peers.
VWSB's Profit Margin has declined in the last couple of years.
VWSB has a Operating Margin (4.27%) which is in line with its industry peers.
In the last couple of years the Operating Margin of VWSB has declined.
VWSB has a Gross Margin of 11.89%. This is in the lower half of the industry: VWSB underperforms 78.33% of its industry peers.
VWSB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.27% | ||
| PM (TTM) | 2.89% | ||
| GM | 11.89% |
OM growth 3Y16.4%
OM growth 5Y-12.13%
PM growth 3Y49.72%
PM growth 5Y-13.02%
GM growth 3Y6.01%
GM growth 5Y-3.88%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VWSB is destroying value.
VWSB has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for VWSB has been increased compared to 5 years ago.
The debt/assets ratio for VWSB has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that VWSB is in the distress zone and has some risk of bankruptcy.
VWSB has a Altman-Z score (1.43) which is comparable to the rest of the industry.
The Debt to FCF ratio of VWSB is 2.78, which is a good value as it means it would take VWSB, 2.78 years of fcf income to pay off all of its debts.
VWSB has a Debt to FCF ratio of 2.78. This is amongst the best in the industry. VWSB outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that VWSB is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.87, VWSB is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.95
WACC6.19%
2.3 Liquidity
VWSB has a Current Ratio of 1.04. This is a normal value and indicates that VWSB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.04, VWSB is doing worse than 73.33% of the companies in the same industry.
VWSB has a Quick Ratio of 1.04. This is a bad value and indicates that VWSB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.65, VWSB is doing worse than 78.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
VWSB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.96%, which is quite impressive.
Measured over the past years, VWSB shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -32.23% on average per year.
The Revenue has grown by 12.44% in the past year. This is quite good.
The Revenue has been growing slightly by 7.32% on average over the past years.
EPS 1Y (TTM)44.96%
EPS 3Y-15.8%
EPS 5Y-32.23%
EPS Q2Q%34.32%
Revenue 1Y (TTM)12.44%
Revenue growth 3Y3.53%
Revenue growth 5Y7.32%
Sales Q2Q%31.74%
3.2 Future
Based on estimates for the next years, VWSB will show a very strong growth in Earnings Per Share. The EPS will grow by 64.88% on average per year.
The Revenue is expected to grow by 8.01% on average over the next years. This is quite good.
EPS Next Y721.77%
EPS Next 2Y239.5%
EPS Next 3Y140.18%
EPS Next 5Y64.88%
Revenue Next Year13.29%
Revenue Next 2Y11.49%
Revenue Next 3Y9.77%
Revenue Next 5Y8.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 139.75, VWSB can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of VWSB is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.35, VWSB is valued quite expensively.
VWSB is valuated correctly with a Price/Forward Earnings ratio of 16.76.
61.67% of the companies in the same industry are more expensive than VWSB, based on the Price/Forward Earnings ratio.
VWSB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 139.75 | ||
| Fwd PE | 16.76 |
4.2 Price Multiples
71.67% of the companies in the same industry are more expensive than VWSB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VWSB indicates a rather cheap valuation: VWSB is cheaper than 81.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.99 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
VWSB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VWSB's earnings are expected to grow with 140.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y239.5%
EPS Next 3Y140.18%
5. Dividend
5.1 Amount
VWSB has a yearly dividend return of 0.51%, which is pretty low.
VWSB's Dividend Yield is a higher than the industry average which is at 2.91.
With a Dividend Yield of 0.51, VWSB pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y239.5%
EPS Next 3Y140.18%
FRA:VWSB (3/7/2025, 7:00:00 PM)
13.975
-0.29 (-2.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners47.74%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap14.11B
Analysts75.63
Price Target21.27 (52.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-51.75%
Min EPS beat(2)-58.95%
Max EPS beat(2)-44.55%
EPS beat(4)0
Avg EPS beat(4)-188.14%
Min EPS beat(4)-348.18%
Max EPS beat(4)-44.55%
EPS beat(8)3
Avg EPS beat(8)-37.5%
EPS beat(12)3
Avg EPS beat(12)-130.28%
EPS beat(16)3
Avg EPS beat(16)-119.94%
Revenue beat(2)2
Avg Revenue beat(2)5.43%
Min Revenue beat(2)5.35%
Max Revenue beat(2)5.51%
Revenue beat(4)2
Avg Revenue beat(4)-3.63%
Min Revenue beat(4)-13.01%
Max Revenue beat(4)5.51%
Revenue beat(8)6
Avg Revenue beat(8)0.61%
Revenue beat(12)7
Avg Revenue beat(12)-0.79%
Revenue beat(16)8
Avg Revenue beat(16)-2.02%
PT rev (1m)-7.47%
PT rev (3m)-10.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.23%
EPS NY rev (1m)-8.24%
EPS NY rev (3m)-22.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.7%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 139.75 | ||
| Fwd PE | 16.76 | ||
| P/S | 0.82 | ||
| P/FCF | 11.99 | ||
| P/OCF | 6.05 | ||
| P/B | 4 | ||
| P/tB | 98.01 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)0.1
EY0.72%
EPS(NY)0.83
Fwd EY5.97%
FCF(TTM)1.17
FCFY8.34%
OCF(TTM)2.31
OCFY16.52%
SpS17.13
BVpS3.49
TBVpS0.14
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 14.14% | ||
| ROCE | 8.06% | ||
| ROIC | 5.91% | ||
| ROICexc | 10.38% | ||
| ROICexgc | 29.52% | ||
| OM | 4.27% | ||
| PM (TTM) | 2.89% | ||
| GM | 11.89% | ||
| FCFM | 6.81% |
ROA(3y)-1.82%
ROA(5y)-0.11%
ROE(3y)-11.65%
ROE(5y)-3.13%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y52.87%
ROICexcg growth 5Y-21.37%
ROICexc growth 3Y31.66%
ROICexc growth 5Y-22.57%
OM growth 3Y16.4%
OM growth 5Y-12.13%
PM growth 3Y49.72%
PM growth 5Y-13.02%
GM growth 3Y6.01%
GM growth 5Y-3.88%
F-Score8
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 133.68% | ||
| Cap/Sales | 6.68% | ||
| Interest Coverage | 5.96 | ||
| Cash Conversion | 145.48% | ||
| Profit Quality | 235.87% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.43 |
F-Score8
WACC6.19%
ROIC/WACC0.95
Cap/Depr(3y)107.34%
Cap/Depr(5y)101.55%
Cap/Sales(3y)6.04%
Cap/Sales(5y)5.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.96%
EPS 3Y-15.8%
EPS 5Y-32.23%
EPS Q2Q%34.32%
EPS Next Y721.77%
EPS Next 2Y239.5%
EPS Next 3Y140.18%
EPS Next 5Y64.88%
Revenue 1Y (TTM)12.44%
Revenue growth 3Y3.53%
Revenue growth 5Y7.32%
Sales Q2Q%31.74%
Revenue Next Year13.29%
Revenue Next 2Y11.49%
Revenue Next 3Y9.77%
Revenue Next 5Y8.01%
EBIT growth 1Y1952.78%
EBIT growth 3Y20.51%
EBIT growth 5Y-5.69%
EBIT Next Year261.43%
EBIT Next 3Y70.15%
EBIT Next 5Y38.51%
FCF growth 1Y771.85%
FCF growth 3Y114.06%
FCF growth 5Y90.43%
OCF growth 1Y127.07%
OCF growth 3Y34.61%
OCF growth 5Y23.16%