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Vestas Wind Systems

DB:VWS
Snowflake Description

Flawless balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VWS
DB
DKK108B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The last earnings update was 56 days ago. More info.


Add to Portfolio Compare Print
  • Vestas Wind Systems has significant price volatility in the past 3 months.
VWS Share Price and Events
7 Day Returns
-4.1%
DB:VWS
1.8%
DE Electrical
2.2%
DE Market
1 Year Returns
-5.9%
DB:VWS
-8.9%
DE Electrical
-17.2%
DE Market
VWS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vestas Wind Systems (VWS) -4.1% -15.1% -16.2% -5.9% -3.3% 79.1%
DE Electrical 1.8% -20.6% -35.7% -8.9% -41.9% -42.9%
DE Market 2.2% -15.7% -24% -17.2% -23.3% -27.8%
1 Year Return vs Industry and Market
  • VWS outperformed the Electrical industry which returned -8.9% over the past year.
  • VWS outperformed the Market in Germany which returned -17.2% over the past year.
Price Volatility
VWS
Industry
5yr Volatility vs Market

VWS Value

 Is Vestas Wind Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vestas Wind Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vestas Wind Systems.

DB:VWS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:VWS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.118 (1 + (1- 22%) (5.67%))
1.112
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.112 * 5.44%)
5.66%

Discounted Cash Flow Calculation for DB:VWS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vestas Wind Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:VWS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 5.66%)
2020 695.44 Analyst x13 658.18
2021 779.96 Analyst x13 698.61
2022 913.60 Analyst x9 774.46
2023 976.50 Analyst x2 783.43
2024 1,189.00 Analyst x1 902.80
2025 1,298.90 Est @ 9.24% 933.39
2026 1,381.41 Est @ 6.35% 939.50
2027 1,441.23 Est @ 4.33% 927.65
2028 1,483.23 Est @ 2.91% 903.53
2029 1,511.75 Est @ 1.92% 871.56
Present value of next 10 years cash flows €8,393.00
DB:VWS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €1,511.75 × (1 + -0.39%) ÷ (5.66% – -0.39%)
€24,882.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €24,882.36 ÷ (1 + 5.66%)10
€14,345.25
DB:VWS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €8,393.00 + €14,345.25
€22,738.25
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €22,738.25 / 195.34
€116.4
DB:VWS Discount to Share Price
Calculation Result
Exchange Rate EUR/DKK
(Reporting currency to currency of CPSE:VWS)
7.468
Value per Share
(DKK)
= Value per Share in EUR x Exchange Rate (EUR/DKK)
= €116.4 x 7.468
DKK869.31
Non-primary Listing Adjustment Factor 1 share in DB:VWS represents 0.13456x of CPSE:VWS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.13456x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (DKK) x Listing Adjustment Factor
= DKK 869.31 x 0.13456
€116.98
Value per share (EUR) From above. €116.98
Current discount Discount to share price of €74.36
= -1 x (€74.36 - €116.98) / €116.98
36.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vestas Wind Systems is available for.
Intrinsic value
36%
Share price is €74.36 vs Future cash flow value of €116.98
Current Discount Checks
For Vestas Wind Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vestas Wind Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Vestas Wind Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vestas Wind Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vestas Wind Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:VWS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in EUR €3.57
CPSE:VWS Share Price ** CPSE (2020-03-31) in DKK DKK552.6
CPSE:VWS Share Price converted to EUR reporting currency Exchange rate (DKK/ EUR) 0.134 €73.99
Germany Electrical Industry PE Ratio Median Figure of 6 Publicly-Listed Electrical Companies 24.37x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.76x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vestas Wind Systems.

DB:VWS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= CPSE:VWS Share Price ÷ EPS (both in EUR)

= 73.99 ÷ 3.57

20.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vestas Wind Systems is good value based on earnings compared to the DE Electrical industry average.
  • Vestas Wind Systems is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Vestas Wind Systems's expected growth come at a high price?
Raw Data
DB:VWS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
8.9%per year
Germany Electrical Industry PEG Ratio Median Figure of 5 Publicly-Listed Electrical Companies 1.01x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:VWS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.75x ÷ 8.9%

2.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vestas Wind Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Vestas Wind Systems's assets?
Raw Data
DB:VWS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in EUR €16.86
CPSE:VWS Share Price * CPSE (2020-03-31) in DKK DKK552.6
CPSE:VWS Share Price converted to EUR reporting currency Exchange rate (DKK/ EUR) 0.134 €73.99
Germany Electrical Industry PB Ratio Median Figure of 14 Publicly-Listed Electrical Companies 1.77x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.44x
DB:VWS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= CPSE:VWS Share Price ÷ Book Value per Share (both in EUR)

= 73.99 ÷ 16.86

4.39x

* Primary Listing of Vestas Wind Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vestas Wind Systems is overvalued based on assets compared to the DE Electrical industry average.
X
Value checks
We assess Vestas Wind Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. Vestas Wind Systems has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VWS Future Performance

 How is Vestas Wind Systems expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vestas Wind Systems expected to grow at an attractive rate?
  • Vestas Wind Systems's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Vestas Wind Systems's earnings growth is positive but not above the Germany market average.
  • Vestas Wind Systems's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:VWS Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:VWS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 8.9%
DB:VWS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 2%
Germany Electrical Industry Earnings Growth Rate Market Cap Weighted Average 68.3%
Germany Electrical Industry Revenue Growth Rate Market Cap Weighted Average 12.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:VWS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:VWS Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 13,443 2
2023-12-31 13,434 1,474 917 3
2022-12-31 13,541 1,532 954 13
2021-12-31 13,667 1,447 893 18
2020-12-31 14,158 1,456 831 17
2020-04-01
DB:VWS Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-12-31 12,147 823 704
2019-09-30 10,866 1,357 640
2019-06-30 10,031 941 513
2019-03-31 10,170 789 607
2018-12-31 10,134 1,021 684
2018-09-30 9,884 766 760
2018-06-30 9,816 1,151 834
2018-03-31 9,762 1,161 836
2017-12-31 9,953 1,625 894
2017-09-30 10,147 1,875 942
2017-06-30 10,307 1,823 998
2017-03-31 10,658 2,291 1,090

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vestas Wind Systems's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).
  • Vestas Wind Systems's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:VWS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Vestas Wind Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:VWS Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31 4.65 4.65 4.65 1.00
2022-12-31 4.99 6.51 4.03 9.00
2021-12-31 4.59 5.91 3.08 14.00
2020-12-31 4.25 4.95 3.44 14.00
2020-04-01
DB:VWS Past Financials Data
Date (Data in EUR Millions) EPS *
2019-12-31 3.57
2019-09-30 3.23
2019-06-30 2.58
2019-03-31 3.07
2018-12-31 3.41
2018-09-30 3.74
2018-06-30 4.06
2018-03-31 4.00
2017-12-31 4.23
2017-09-30 4.41
2017-06-30 4.62
2017-03-31 5.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Vestas Wind Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Vestas Wind Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vestas Wind Systems has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VWS Past Performance

  How has Vestas Wind Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vestas Wind Systems's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Vestas Wind Systems's year on year earnings growth rate has been positive over the past 5 years.
  • Vestas Wind Systems's 1-year earnings growth is less than its 5-year average (2.9% vs 3.8%)
  • Vestas Wind Systems's earnings growth has not exceeded the DE Electrical industry average in the past year (2.9% vs 74.4%).
Earnings and Revenue History
Vestas Wind Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vestas Wind Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:VWS Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 12,147.00 704.00 488.00 268.00
2019-09-30 10,866.00 640.00 488.00 256.00
2019-06-30 10,031.00 513.00 471.00 247.00
2019-03-31 10,170.00 607.00 461.00 241.00
2018-12-31 10,134.00 684.00 442.00 223.00
2018-09-30 9,884.00 760.00 445.00 186.00
2018-06-30 9,816.00 834.00 461.00 210.00
2018-03-31 9,762.00 836.00 481.00 210.00
2017-12-31 9,953.00 894.00 498.00 204.00
2017-09-30 10,147.00 942.00 481.00 208.00
2017-06-30 10,307.00 998.00 463.00 185.00
2017-03-31 10,658.00 1,090.00 489.00 204.00
2016-12-31 10,237.00 965.00 473.00 216.00
2016-09-30 9,959.00 920.00 465.00 245.00
2016-06-30 9,176.00 817.00 473.00 236.00
2016-03-31 8,368.00 664.00 439.00 218.00
2015-12-31 8,423.00 685.00 434.00 208.00
2015-09-30 7,861.00 581.00 445.00 189.00
2015-06-30 7,554.00 477.00 433.00 199.00
2015-03-31 7,146.00 446.00 418.00 200.00
2014-12-31 6,910.00 392.00 406.00 209.00
2014-09-30 6,798.00 416.00 426.00 245.00
2014-06-30 6,427.00 227.00 417.00 245.00
2014-03-31 6,271.00 71.00 426.00 237.00
2013-12-31 6,084.00 -82.00 439.00 246.00
2013-09-30 6,235.00 -918.00 413.00 230.00
2013-06-30 6,781.00 -1,006.00 448.00 239.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Vestas Wind Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Vestas Wind Systems used its assets less efficiently than the DE Electrical industry average last year based on Return on Assets.
  • Vestas Wind Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Vestas Wind Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vestas Wind Systems has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VWS Health

 How is Vestas Wind Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vestas Wind Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vestas Wind Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Vestas Wind Systems's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Vestas Wind Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 16.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vestas Wind Systems Company Filings, last reported 3 months ago.

DB:VWS Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,345.00 622.00 3,061.00
2019-09-30 3,313.00 634.00 2,454.00
2019-06-30 2,957.00 568.00 2,345.00
2019-03-31 3,084.00 535.00 2,495.00
2018-12-31 3,104.00 498.00 3,340.00
2018-09-30 2,926.00 502.00 2,054.00
2018-06-30 2,919.00 505.00 2,373.00
2018-03-31 3,071.00 497.00 2,903.00
2017-12-31 3,112.00 497.00 3,660.00
2017-09-30 3,163.00 497.00 2,903.00
2017-06-30 3,142.00 496.00 2,928.00
2017-03-31 3,308.00 496.00 3,489.00
2016-12-31 3,190.00 496.00 3,561.00
2016-09-30 3,073.00 496.00 2,612.00
2016-06-30 2,925.00 496.00 2,579.00
2016-03-31 2,728.00 500.00 2,457.00
2015-12-31 2,899.00 495.00 2,765.00
2015-09-30 2,813.00 495.00 2,304.00
2015-06-30 2,577.00 499.00 2,208.00
2015-03-31 2,388.00 498.00 2,184.00
2014-12-31 2,379.00 607.00 2,018.00
2014-09-30 2,165.00 620.00 1,222.00
2014-06-30 2,010.00 618.00 1,060.00
2014-03-31 1,921.00 618.00 1,094.00
2013-12-31 1,524.00 608.00 694.00
2013-09-30 1,225.00 1,102.00 374.00
2013-06-30 1,375.00 1,169.00 390.00
  • Vestas Wind Systems's level of debt (18.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (25.5% vs 18.6% today).
  • Debt is well covered by operating cash flow (132.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 125.6x coverage).
X
Financial health checks
We assess Vestas Wind Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vestas Wind Systems has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VWS Dividends

 What is Vestas Wind Systems's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.43%
Current annual income from Vestas Wind Systems dividends. Estimated to be 1.85% next year.
If you bought €2,000 of Vestas Wind Systems shares you are expected to receive €29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Vestas Wind Systems's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.65%).
  • Vestas Wind Systems's dividend is below the markets top 25% of dividend payers in Germany (4.87%).
Upcoming dividend payment

Purchase Vestas Wind Systems before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:VWS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
Germany Electrical Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 322 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:VWS Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31 1.40 1.00
2022-12-31 1.49 14.00
2021-12-31 1.37 19.00
2020-12-31 1.27 19.00
2020-04-01
DB:VWS Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2020-02-05 1.060 1.273
2019-02-07 1.000 1.295
2018-04-03 1.236 2.112
2018-02-07 1.240 2.123
2017-02-08 1.310 1.872
2016-02-09 0.914 1.445
2015-02-11 0.520 1.091

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vestas Wind Systems has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Vestas Wind Systems only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Vestas Wind Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Vestas Wind Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vestas Wind Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vestas Wind Systems has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VWS Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Henrik Andersen
COMPENSATION €1,100,000
AGE 52
TENURE AS CEO 0.7 years
CEO Bio

Mr. Henrik Andersen has been Group President and Chief Executive Officer of Vestas Wind Systems A/S since August 1, 2019. Mr. Andersen served as the Chief Executive Officer of Hempel A/S from March 01, 2016, President since March 29, 2016 and also served as its Member of Executive Board until July 2019. Mr. Andersen served as Member of Executive Group Management Board at ISS A/S since December 1, 2011 and served as its Group Chief Operating Officer since September 1, 2015 until January 6, 2016. He served as Group Chief Operating Officer of ISS World Services A/S since September 2, 2015. He served as the Group Chief Operating Officer of ISS Global A/S since September 2, 2015 until January 16, 2016. He served as Group Chief Financial Officer at ISS Global A/S since December 1, 2011. Mr. Andersen served as the Group Chief Operating Officer of EMEA at ISS Global A/S since February 2013 and its Member of Management Board since December 1, 2011. He served as Group Chief Operating Officer of EMEA at ISS A/S since March 20, 2013. He previously held the position as Group Chief Financial Officer. He served as an International Business Director of ISS World Services A/S since 2004 until September 2nd 2015. He served as the Group Chief Financial Officer of ISS A/S from December 1, 2011 to August 2013. He served as Country Manager, ISS A/S (United Kingdom) from 2009 to 2011. He served as Chairman and Member of the Boards of several subsidiaries of the Hempel Group. He has been Director of H. Lundbeck A/S since March 20, 2018. He served as Chief Executive Officer of Iss Uk at ISS A/S. since 2008. He has a strong 11 year history with ISS and was appointed Group Treasurer and member of Group Management in 2003. He served as Senior Vice President and Corporate Treasury of ISS World Services A/S. He joined ISS International Service System A.S in 2000. He served as Chief Financial Officer, ISS A/S (United Kingdom) from 2005 to 2009; Executive Vice President and International Business Director of Northern Europe, ISS A/S (United Kingdom, Finland, Baltics and Russia) from 2004 to 2005; Head of Group Treasury and Member of Group Management, ISS A/S (Denmark) from 2002 to 2004; Senior Vice President, ISS A/S (Denmark) from 2001 to 2002; Vice President and Treasurer, ISS A/S (Denmark) from 2000 to 2001; and Director Corporate Clients, Jyske Markets, Jyske Bank A/S (Denmark) from 1995 to 2001. He held various positions in Jyske Bank A/S including Director for large Nordic Corporate Clients from 1997 to 2000 and Sparekassen SDS (Denmark) from 1986 to 1995. He has In-depth knowledge of finance and capital markets, international business experience including restructuring and strategic management of international companies. He serves as Chairman of ISS Capital A/S (Denmark), ISS Finans A/S (Denmark), ISS Holding France A/S (Denmark), ISS Lending A/S (Denmark) and ISS Venture A/S (Denmark). He served as a Director of ISS Global A/S until January 16, 2016. He served as a Director of ISS Global Management A/S (Denmark). He served as a Director of Vestas Wind Systems A/S from March 2013 to August 1, 2019. He served as a Director of ICEA A/S. Mr. Andersen holds two Masters Degrees, one in International Trade and Finance as well as a Master of Law degree from Aarhus University. From 1988 to 1992, he earned Graduate Diploma in International Business and Finance from Aarhus School of Business (Denmark).

CEO Compensation
  • Insufficient data for Henrik to compare compensation growth.
  • Henrik's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Vestas Wind Systems management team in years:

6.1
Average Tenure
56
Average Age
  • The average tenure for the Vestas Wind Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Henrik Andersen

TITLE
Group President & CEO
COMPENSATION
€1M
AGE
52
TENURE
0.7 yrs

Kim Thomsen

TITLE
HR Business Partner of People & Culture and Director
COMPENSATION
€650K
AGE
56
TENURE
5.3 yrs

Peter Lindholst

TITLE
VP of Concept Development
COMPENSATION
€400K
AGE
48

Marika Fredriksson

TITLE
Executive VP & CFO
AGE
56
TENURE
6.9 yrs

Anders Vedel

TITLE
Executive Vice President of Technology
AGE
62
TENURE
8.2 yrs

Patrik Setterberg

TITLE
VP & Head of Investor Relations

Anders Riis

TITLE
Director & Head of Communications

Morten Dyrholm

TITLE
Group Senior Vice President of Marketing

Kerstin Knapp

TITLE
Executive Vice President of People & Culture
TENURE
0.3 yrs

Torben Bonde

TITLE
CIO and Senior Vice President of Group IT
TENURE
21.3 yrs
Board of Directors Tenure

Average tenure and age of the Vestas Wind Systems board of directors in years:

8.1
Average Tenure
54.5
Average Age
  • The tenure for the Vestas Wind Systems board of directors is about average.
Board of Directors

Bert Ake Nordberg

TITLE
Chairman
COMPENSATION
€2M
AGE
63
TENURE
8.1 yrs

Lars Josefsson

TITLE
Deputy Chairman
COMPENSATION
€2M
AGE
66
TENURE
8.1 yrs

Kim Thomsen

TITLE
HR Business Partner of People & Culture and Director
COMPENSATION
€650K
AGE
56
TENURE
23.9 yrs

Peter Lindholst

TITLE
VP of Concept Development
COMPENSATION
€400K
AGE
48
TENURE
4.1 yrs

Sussie Agerbo

TITLE
Director
COMPENSATION
€400K
AGE
49
TENURE
14.4 yrs

Michael Lisbjerg

TITLE
Director
COMPENSATION
€400K
AGE
45
TENURE
12 yrs

Carsten Bjerg

TITLE
Independent Director
COMPENSATION
€909K
AGE
60
TENURE
9.1 yrs

Jens Lund

TITLE
Independent Director
COMPENSATION
€650K
AGE
50
TENURE
2 yrs

Helle Thorning-Schmidt

TITLE
Independent Director
AGE
53
TENURE
1 yrs

Bruce Grant

TITLE
Independent Director
AGE
60
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Vestas Wind Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vestas Wind Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VWS News

Simply Wall St News

VWS Company Info

Description

Vestas Wind Systems A/S designs, manufactures, installs, and services wind turbines worldwide. The company operates in two segments, Power Solutions and Service. The Power Solutions segment sells wind power plants, wind turbines, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.

Details
Name: Vestas Wind Systems A/S
VWS
Exchange: DB
Founded: 1898
DKK14,454,221,157
195,342,514
Website: http://www.vestas.com
Address: Vestas Wind Systems A/S
Hedeager 42,
Aarhus N,
Aarhus,
Central Denmark Region, 8200,
Denmark
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
CPSE VWS Ordinary Shares OMX Nordic Exchange Copenhagen DK DKK 01. May 1998
OTCPK VWSY.F Ordinary Shares Pink Sheets LLC US USD 01. May 1998
DB VWS Ordinary Shares Deutsche Boerse AG DE EUR 01. May 1998
XTRA VWS Ordinary Shares XETRA Trading Platform DE EUR 01. May 1998
LSE 0NMK Ordinary Shares London Stock Exchange GB DKK 01. May 1998
SWX VWS Ordinary Shares SIX Swiss Exchange CH CHF 01. May 1998
WBAG VWS Ordinary Shares Wiener Boerse AG AT EUR 01. May 1998
BMV VWS N Ordinary Shares Bolsa Mexicana de Valores MX MXN 01. May 1998
BATS-CHIXE VWSC Ordinary Shares BATS 'Chi-X Europe' GB DKK 01. May 1998
OTCPK VWDR.Y ADR EACH REPR 0.33333 SHS Pink Sheets LLC US USD 24. Jan 2007
DB VWSA ADR EACH REPR 0.33333 SHS Deutsche Boerse AG DE EUR 24. Jan 2007
XTRA VWSA ADR EACH REPR 0.33333 SHS XETRA Trading Platform DE EUR 24. Jan 2007
Number of employees
Current staff
Staff numbers
25,541
Vestas Wind Systems employees.
Industry
Heavy Electrical Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/01 03:28
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2020/02/05
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.