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 54 industry peers in the Electrical Equipment industry. Both the profitability and the financial health of VWSB get a neutral evaluation. Nothing too spectacular is happening here. VWSB has a decent growth rate and is not valued too expensively.
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.
VWSB had positive earnings in 4 of the past 5 years.
VWSB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.26%, VWSB is doing good in the industry, outperforming 62.96% of the companies in the same industry.
VWSB's Return On Equity of 17.06% is amongst the best of the industry. VWSB outperforms 88.89% of its industry peers.
With a decent Return On Invested Capital value of 6.62%, VWSB is doing good in the industry, outperforming 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 17.06% | ||
| ROIC | 6.62% |
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
Looking at the Profit Margin, with a value of 3.16%, VWSB is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
VWSB's Profit Margin has declined in the last couple of years.
VWSB has a Operating Margin (4.53%) which is in line with its industry peers.
In the last couple of years the Operating Margin of VWSB has declined.
VWSB's Gross Margin of 12.01% is on the low side compared to the rest of the industry. VWSB is outperformed by 88.89% of its industry peers.
VWSB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.53% | ||
| PM (TTM) | 3.16% | ||
| GM | 12.01% |
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 just above the Cost of Capital (WACC), so VWSB is still creating some value.
Compared to 1 year ago, VWSB has about the same amount of shares outstanding.
VWSB has more shares outstanding than it did 5 years ago.
VWSB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that VWSB is in the distress zone and has some risk of bankruptcy.
VWSB has a Altman-Z score (1.44) which is comparable to the rest of the industry.
The Debt to FCF ratio of VWSB is 1.80, which is an excellent value as it means it would take VWSB, only 1.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VWSB (1.80) is better than 87.04% of its industry peers.
VWSB has a Debt/Equity ratio of 0.92. This is a neutral value indicating VWSB is somewhat dependend on debt financing.
VWSB has a worse Debt to Equity ratio (0.92) than 72.22% of its industry peers.
Although VWSB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 1.44 |
ROIC/WACC1.05
WACC6.28%
2.3 Liquidity
VWSB has a Current Ratio of 1.02. 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 1.02, VWSB is doing worse than 83.33% of the companies in the same industry.
VWSB has a Quick Ratio of 1.02. This is a bad value and indicates that VWSB is not financially healthy enough and could expect problems in meeting its short term obligations.
VWSB has a worse Quick ratio (0.60) than 90.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 5700.00% over the past year.
VWSB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.15% yearly.
VWSB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.70%.
The Revenue has been growing slightly by 7.32% on average over the past years.
EPS 1Y (TTM)5700%
EPS 3Y42.31%
EPS 5Y-7.15%
EPS Q2Q%100%
Revenue 1Y (TTM)18.7%
Revenue growth 3Y3.53%
Revenue growth 5Y7.32%
Sales Q2Q%29.35%
3.2 Future
The Earnings Per Share is expected to grow by 25.83% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.98% on average over the next years.
EPS Next Y62%
EPS Next 2Y50.48%
EPS Next 3Y41.33%
EPS Next 5Y25.83%
Revenue Next Year12.5%
Revenue Next 2Y10.82%
Revenue Next 3Y9.43%
Revenue Next 5Y7.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
VWSB is valuated quite expensively with a Price/Earnings ratio of 26.74.
70.37% of the companies in the same industry are more expensive than VWSB, based on the Price/Earnings ratio.
VWSB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.50, VWSB is valued correctly.
Based on the Price/Forward Earnings ratio, VWSB is valued a bit cheaper than 72.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. VWSB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.74 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VWSB indicates a somewhat cheap valuation: VWSB is cheaper than 74.07% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VWSB indicates a rather cheap valuation: VWSB is cheaper than 87.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.17 | ||
| EV/EBITDA | 8.69 |
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.
A more expensive valuation may be justified as VWSB's earnings are expected to grow with 41.33% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y50.48%
EPS Next 3Y41.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, VWSB is not a good candidate for dividend investing.
VWSB's Dividend Yield is a higher than the industry average which is at 2.66.
With a Dividend Yield of 0.52, VWSB pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y50.48%
EPS Next 3Y41.33%
FRA:VWSB (7/4/2025, 7:00:00 PM)
14.975
+0.07 (+0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.27%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap15.12B
Analysts74.55
Price Target18.99 (26.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)60.1%
Min EPS beat(2)20.2%
Max EPS beat(2)100%
EPS beat(4)2
Avg EPS beat(4)-68.13%
Min EPS beat(4)-348.18%
Max EPS beat(4)100%
EPS beat(8)4
Avg EPS beat(8)-29.72%
EPS beat(12)5
Avg EPS beat(12)-37.58%
EPS beat(16)5
Avg EPS beat(16)-95.57%
Revenue beat(2)2
Avg Revenue beat(2)9.38%
Min Revenue beat(2)3.09%
Max Revenue beat(2)15.68%
Revenue beat(4)3
Avg Revenue beat(4)2.78%
Min Revenue beat(4)-13.01%
Max Revenue beat(4)15.68%
Revenue beat(8)6
Avg Revenue beat(8)1.18%
Revenue beat(12)7
Avg Revenue beat(12)-0.51%
Revenue beat(16)9
Avg Revenue beat(16)0.41%
PT rev (1m)-8.99%
PT rev (3m)-10.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.51%
EPS NY rev (1m)0%
EPS NY rev (3m)1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.74 | ||
| Fwd PE | 13.5 | ||
| P/S | 0.84 | ||
| P/FCF | 8.17 | ||
| P/OCF | 4.85 | ||
| P/B | 4.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.69 |
EPS(TTM)0.56
EY3.74%
EPS(NY)1.11
Fwd EY7.41%
FCF(TTM)1.83
FCFY12.24%
OCF(TTM)3.08
OCFY20.6%
SpS17.91
BVpS3.32
TBVpS-0.06
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 17.06% | ||
| ROCE | 9.03% | ||
| ROIC | 6.62% | ||
| ROICexc | 10.89% | ||
| ROICexgc | 28.61% | ||
| OM | 4.53% | ||
| PM (TTM) | 3.16% | ||
| GM | 12.01% | ||
| FCFM | 10.24% |
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-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 146.3% | ||
| Cap/Sales | 6.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 184.98% | ||
| Profit Quality | 323.6% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.44 |
F-Score7
WACC6.28%
ROIC/WACC1.05
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)5700%
EPS 3Y42.31%
EPS 5Y-7.15%
EPS Q2Q%100%
EPS Next Y62%
EPS Next 2Y50.48%
EPS Next 3Y41.33%
EPS Next 5Y25.83%
Revenue 1Y (TTM)18.7%
Revenue growth 3Y3.53%
Revenue growth 5Y7.32%
Sales Q2Q%29.35%
Revenue Next Year12.5%
Revenue Next 2Y10.82%
Revenue Next 3Y9.43%
Revenue Next 5Y7.98%
EBIT growth 1Y876.19%
EBIT growth 3Y20.51%
EBIT growth 5Y-5.69%
EBIT Next Year228.41%
EBIT Next 3Y64.28%
EBIT Next 5Y37.59%
FCF growth 1Y278.84%
FCF growth 3Y114.06%
FCF growth 5Y90.43%
OCF growth 1Y1392.53%
OCF growth 3Y34.61%
OCF growth 5Y23.16%