Vestas Wind Systems A/S

Vestas Wind Systems A/S maintains a capital structure characterized by high leverage relative to equity, with a debt-to-equity ratio of 0.87 and a current ratio of 1.0, indicating tight short-term liquidity despite holding EUR 4.37 billion in cash and equivalents against EUR 3.37 billion in long-term debt. The balance sheet shows total assets of EUR 25.73 billion and total liabilities of EUR 21.87 billion, resulting in total equity of EUR 3.87 billion. The company generates EUR 2.29 billion in operating cash flow, which supports EUR 1.28 billion in capital expenditures, yielding a free cash flow of EUR 459 million.

Profitability metrics present a divergence between return ratios and valuation multiples. The company reports a return on equity of 22.11% and a return on assets of 3.32%, driven by a net income of EUR 778 million on revenue of EUR 18.82 billion. However, the valuation multiples are exceptionally high, with a price-to-earnings ratio of 202.22, a price-to-book ratio of 44.71, and an EV/EBITDA of 158.14, suggesting the market is pricing in significant future growth or that current earnings are viewed as temporarily depressed relative to the asset base. The gross profit of EUR 2.497 billion represents a gross margin of approximately 13.3%, while operating income of EUR 1.015 billion indicates an operating margin of roughly 5.4%.

Segment and geographic data are not provided in the input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s activity is broadly defined as Exploration & Production in the classification data, which is inconsistent with its known business model, but the sector classification industry code of Electrical Equipment aligns with its manufacturing operations. Without specific segment breakdowns, the revenue mix cannot be assessed for concentration risk.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue of EUR 18.82 billion serves as the baseline, but without prior year or quarterly comparisons, year-over-year growth rates cannot be calculated. The high valuation multiples imply that investors expect substantial revenue expansion or margin improvement in the future, but the specific growth drivers are not detailed in the available financial snapshot.

Risk assessment indicates low liquidity risk and low dilution risk, with no immediate filing-based flags detected. The current ratio of 1.0 is a potential concern for short-term solvency, but the substantial cash position of EUR 4.37 billion provides a buffer. The dilution risk is low, as basic and diluted shares outstanding are identical at 986 million, suggesting no significant in-the-money options or convertible securities impacting the share count.

Recent events are reflected in analyst estimates, with a mean price target of EUR 194.78 and a median target of EUR 205.00, implying upside from the current market price of EUR 175.35. The mean recommendation of 2.31 (on a 1-5 scale) indicates a moderate buy consensus, supported by 7 strong buy and 10 buy ratings versus 8 hold ratings. The wide range of price targets, from a low of EUR 80.00 to a high of EUR 251.00, reflects significant uncertainty in the market regarding the company’s future performance.

Free cash flow is projected to surge 135.4% year-over-year to EUR 459 million in fiscal 2026.

Operating income is forecast to grow 27.8% to EUR 1.015 billion, signaling strong operational leverage.

Analysts assign a mean price target of EUR 194.78, implying 8.7% upside from current levels.

Revenue is expected to reach EUR 18.8 billion in 2026, maintaining a 4.8% four-year CAGR.

Debt-to-equity ratio of 0.87 is higher than the 0.33 median, suggesting elevated financial leverage.

The company posted a net loss of EUR 1.57 billion in fiscal 2023, highlighting past volatility.

The lowest analyst price target is EUR 80.0, representing significant downside risk from current prices.

Revenue €3.97B, +14,4% YoY; Operating income +360,0% YoY.

• ▍Revenue €3.97B, +14,4% YoY
• ▍Operating income +360,0% YoY
• ▍Net income +1 540,0% YoY
• ▍Free cash flow +295,9% YoY
• ▍Net margin 2.1%

Revenue €6.27B, +2,1% YoY; Operating income −35,7% YoY.

• ▍Revenue €6.27B, +2,1% YoY
• ▍Operating income −35,7% YoY
• ▍Net income −26,6% YoY
• ▍Free cash flow −24,4% YoY
• ▍Net margin 7.0%

Revenue €5.34B, +3,1% YoY; Operating income +79,2% YoY.

• ▍Revenue €5.34B, +3,1% YoY
• ▍Operating income +79,2% YoY
• ▍Net income +137,8% YoY
• ▍Free cash flow +348,4% YoY
• ▍Net margin 5.7%

Revenue €3.75B, +13,6% YoY; Operating income +130,8% YoY.

• ▍Revenue €3.75B, +13,6% YoY
• ▍Operating income +130,8% YoY
• ▍Net income +120,2% YoY
• ▍Free cash flow +101,9% YoY
• ▍Net margin 0.9%

Revenue €3.47B; Operating income €20.0M.

• ▍Revenue €3.47B
• ▍Operating income €20.0M
• ▍Net margin 0.1%

Revenue €6.14B; Operating income €815.0M.

• ▍Revenue €6.14B
• ▍Operating income €815.0M
• ▍Net margin 9.7%

Revenue €5.18B; Operating income €231.0M.

• ▍Revenue €5.18B
• ▍Operating income €231.0M
• ▍Net margin 2.5%

Revenue €3.30B; Operating income -€185.0M.

• ▍Revenue €3.30B
• ▍Operating income -€185.0M
• ▍Net margin -4.8%

Revenue €18.82B, +8,8% YoY; Operating income +27,8% YoY.

• ▍Revenue €18.82B, +8,8% YoY
• ▍Operating income +27,8% YoY
• ▍Net income +55,9% YoY
• ▍Free cash flow +135,4% YoY
• ▍Net margin 4.1%

Revenue €17.30B, +12,4% YoY; Operating income +171,9% YoY.

• ▍Revenue €17.30B, +12,4% YoY
• ▍Operating income +171,9% YoY
• ▍Net income +548,0% YoY
• ▍Free cash flow +912,5% YoY
• ▍Net margin 2.9%

Revenue €15.38B, +6,2% YoY; Operating income +118,3% YoY.

• ▍Revenue €15.38B, +6,2% YoY
• ▍Operating income +118,3% YoY
• ▍Net income +104,9% YoY
• ▍Free cash flow +98,4% YoY
• ▍Net margin 0.5%

Revenue €14.49B, −7,1% YoY; Operating income −652,2% YoY.

• ▍Revenue €14.49B, −7,1% YoY
• ▍Operating income −652,2% YoY
• ▍Net income −1 273,1% YoY
• ▍Free cash flow −21 928,6% YoY
• ▍Net margin -10.9%