Vestas Wind Systems A/S
Vestas Wind Systems A/S Fundamental Analysis
Vestas Wind Systems A/S (VWSB.DE) shows moderate financial fundamentals with a PE ratio of 31.05, profit margin of 4.42%, and ROE of 23.81%. The company generates $18.5B in annual revenue with moderate year-over-year growth of 8.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VWSB.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakVWSB.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateVWSB.DE shows balanced valuation metrics.
Growth Score
ExcellentVWSB.DE delivers strong and consistent growth momentum.
Financial Health Score
ModerateVWSB.DE shows balanced financial health with some risks.
Profitability Score
ModerateVWSB.DE maintains healthy but balanced margins.
Key Financial Metrics
Is VWSB.DE Expensive or Cheap?
P/E Ratio
VWSB.DE trades at 31.05 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VWSB.DE's PEG of 0.60 indicates potential undervaluation.
Price to Book
The market values Vestas Wind Systems A/S at 6.77 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.85 times EBITDA. This signals the market has high growth expectations.
How Well Does VWSB.DE Make Money?
Net Profit Margin
For every $100 in sales, Vestas Wind Systems A/S keeps $4.42 as profit after all expenses.
Operating Margin
Core operations generate 5.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.81 in profit for every $100 of shareholder equity.
ROA
Vestas Wind Systems A/S generates $3.20 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 $1.89B, showing steady but balanced cash generation.
Free Cash Flow
Vestas Wind Systems A/S produces free cash flow of $888.54M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.90 in free cash annually.
FCF Yield
VWSB.DE converts 3.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How VWSB.DE Stacks Against Its Sector Peers
| Metric | VWSB.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.05 | 25.80 | Worse (Expensive) |
| ROE | 23.81% | 1269.00% | Weak |
| Net Margin | 4.42% | -33806.00% (disorted) | Weak |
| Debt/Equity | 1.00 | 0.74 | Weak (High Leverage) |
| Current Ratio | 1.03 | 10.45 | Neutral |
| ROA | 3.20% | -1495658.00% (disorted) | Weak |
VWSB.DE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
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
24.65%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-0.19%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
203.98%
Industry Style: Cyclical, Value, Infrastructure
High Growth