Vestas Wind Systems A/S
Vestas Wind Systems A/S Fundamental Analysis
Vestas Wind Systems A/S (VWDRY) shows moderate financial fundamentals with a PE ratio of 26.97, profit margin of 4.30%, and ROE of 22.56%. The company generates $17.9B in annual revenue with strong year-over-year growth of 12.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VWDRY's fundamental strength across five key dimensions:
Efficiency Score
WeakVWDRY struggles to generate sufficient returns from assets.
Valuation Score
ModerateVWDRY shows balanced valuation metrics.
Growth Score
ModerateVWDRY shows steady but slowing expansion.
Financial Health Score
ModerateVWDRY shows balanced financial health with some risks.
Profitability Score
ModerateVWDRY maintains healthy but balanced margins.
Key Financial Metrics
Is VWDRY Expensive or Cheap?
P/E Ratio
VWDRY trades at 26.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VWDRY's PEG of -1.97 indicates potential undervaluation.
Price to Book
The market values Vestas Wind Systems A/S at 5.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.41 times EBITDA. This signals the market has high growth expectations.
How Well Does VWDRY Make Money?
Net Profit Margin
For every $100 in sales, Vestas Wind Systems A/S keeps $4.30 as profit after all expenses.
Operating Margin
Core operations generate 4.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.56 in profit for every $100 of shareholder equity.
ROA
Vestas Wind Systems A/S generates $3.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vestas Wind Systems A/S produces operating cash flow of $2.23B, showing steady but balanced cash generation.
Free Cash Flow
Vestas Wind Systems A/S produces free cash flow of $1.09B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.37 in free cash annually.
FCF Yield
VWDRY converts 5.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How VWDRY Stacks Against Its Sector Peers
| Metric | VWDRY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.97 | 26.49 | Neutral |
| ROE | 22.56% | 1307.00% | Weak |
| Net Margin | 4.30% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.87 | 0.81 | Neutral |
| Current Ratio | 1.00 | 10.48 | Weak Liquidity |
| ROA | 3.02% | -1549793.00% (disorted) | Weak |
VWDRY outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vestas Wind Systems A/S's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.68%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-30.46%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
177.98%
Industry Style: Cyclical, Value, Infrastructure
High Growth