Oersted A/S

Oersted A/S maintains a capital structure characterized by significant leverage, with long-term debt of DKK 107.86 billion against total equity of DKK 140.67 billion, resulting in a debt-to-equity ratio of 0.77. The balance sheet shows total assets of DKK 367.92 billion and total liabilities of DKK 227.25 billion. Liquidity is assessed as medium, supported by a current ratio of 1.94, which indicates adequate short-term coverage of liabilities. However, the company reports negative net cash after subtracting total debt, highlighting a reliance on external financing to support its asset base. The market capitalization stands at DKK 202.58 billion, with a price-to-book ratio of 1.44, suggesting the market values the company's tangible assets at a modest premium.

Profitability metrics reveal a period of significant earnings compression. Net income stands at DKK 2.44 billion on revenue of DKK 73.24 billion, yielding a net margin of approximately 3.3%. Return on equity is critically low at 0.12%, and return on assets is 0.05%, indicating that the company's asset base is not currently generating efficient returns for shareholders. The price-to-earnings ratio is elevated at 1198.72, reflecting the depressed earnings base relative to the market price. Operating cash flow remains robust at DKK 23.74 billion, but this is offset by massive capital expenditures of DKK 54.78 billion, leading to a negative free cash flow of DKK 41.42 billion. This cash flow dynamic is typical for capital-intensive renewable energy developers in heavy investment phases, but it suppresses near-term profitability and return metrics.

The company operates within the Electric Utilities industry, specifically noted for Independent Power and Renewable Electricity Producers activity. While specific segment and geographic revenue breakdowns are not provided in the current data, the classification suggests a diversified portfolio of renewable energy assets. The absence of detailed segment data prevents a granular analysis of revenue concentration, but the industry context implies exposure to both onshore and offshore wind markets, as well as potentially other renewable sources. The company's activity is centered on the generation and sale of electricity, with revenue streams likely tied to long-term power purchase agreements and market-based sales.

Growth trajectory analysis is limited by the absence of historical period data in the current input. However, the current financial snapshot indicates a high level of investment activity, with capital expenditures significantly exceeding operating cash flow. This suggests the company is in a growth phase, expanding its asset base to drive future revenue. The negative free cash flow of DKK 41.42 billion underscores the intensity of this investment cycle. Without historical revenue or net income trends, it is not possible to quantify the year-over-year growth rate, but the scale of capital expenditure implies a strategic focus on capacity expansion.

Risk assessment identifies medium liquidity risk and low dilution risk. The key flag of negative net cash after debt subtraction highlights the company's leverage and dependence on capital markets for funding. The low dilution risk suggests that the company is not currently issuing significant new equity, which is consistent with the equal basic and diluted share counts of 1.32 billion shares. The high debt load and negative free cash flow pose credit risks, particularly in a rising interest rate environment, which could increase financing costs. The medium liquidity rating reflects the need to manage short-term obligations while funding large-scale projects.

Recent observations from investor relations indicate a mean analyst price target of DKK 168.04, with a median target of DKK 169.00, suggesting modest upside potential from the current market price of DKK 153.35. The mean recommendation is 2.33, indicating a lean towards buy ratings, with 6 strong buys and 6 buys against 15 holds. Competitor context includes Duke Energy, NextEra Energy, and Southern Company, providing a benchmark for valuation and performance within the broader utilities sector. No specific filing, news, or transcript observations are provided in the current data to detail recent corporate events or strategic announcements.

Analysts project 12.8% upside to a mean price target of 168.04, reflecting a consensus buy recommendation from 27 analysts.

Net income surged 1,284.5% year-over-year to DKK 2.44 billion in FY2026, signaling a strong operational recovery.

Operating income increased 43.4% year-over-year to DKK 8.83 billion in FY2026, demonstrating improved core profitability.

Cash conversion of 140.48 ranks as best-in-class within the Electric Utilities cohort, indicating superior cash generation efficiency.

Return on invested capital stands at 3.15%, suggesting the company generates positive returns above its cost of capital.

Long-term debt rose to DKK 107.86 billion in FY2026, exacerbating a high credit risk flag and leverage concerns.

Net margin of 0.21% falls in the bottom quartile of the Electric Utilities cohort, indicating weak profitability relative to peers.

Return on equity of 0.12% is in the bottom quartile of the cohort, showing poor capital efficiency compared to peers.

Revenue declined at a 1.5% CAGR over four years, reflecting a shrinking top line despite recent stabilization.

Revenue kr 27.62B, +33,4% YoY; Operating income −15,1% YoY.

• ▍Revenue kr 27.62B, +33,4% YoY
• ▍Operating income −15,1% YoY
• ▍Net income −49,4% YoY
• ▍Free cash flow +50,7% YoY
• ▍Net margin 8.4%

Revenue kr 23.13B, +9,8% YoY; Operating income +83,5% YoY.

• ▍Revenue kr 23.13B, +9,8% YoY
• ▍Operating income +83,5% YoY
• ▍Net income +43,8% YoY
• ▍Free cash flow +21,2% YoY
• ▍Net margin -15.0%

Revenue kr 12.27B, −22,2% YoY; Operating income −116,5% YoY.

• ▍Revenue kr 12.27B, −22,2% YoY
• ▍Operating income −116,5% YoY
• ▍Net income −135,0% YoY
• ▍Free cash flow −636,7% YoY
• ▍Net margin -14.6%

Revenue kr 17.14B, +14,1% YoY; Operating income +13 169,7% YoY.

• ▍Revenue kr 17.14B, +14,1% YoY
• ▍Operating income +13 169,7% YoY
• ▍Net income +280,3% YoY
• ▍Free cash flow +28,3% YoY
• ▍Net margin 18.1%

Revenue kr 20.70B; Operating income kr 6.67B.

• ▍Revenue kr 20.70B
• ▍Operating income kr 6.67B
• ▍Net margin 22.2%

Revenue kr 21.08B; Operating income -kr 6.31B.

• ▍Revenue kr 21.08B
• ▍Operating income -kr 6.31B
• ▍Net margin -29.2%

Revenue kr 15.77B; Operating income kr 6.73B.

• ▍Revenue kr 15.77B
• ▍Operating income kr 6.73B
• ▍Net margin 32.4%

Revenue kr 15.02B; Operating income -kr 33.0M.

• ▍Revenue kr 15.02B
• ▍Operating income -kr 33.0M
• ▍Net margin -11.4%

Revenue kr 73.24B, +3,1% YoY; Operating income +43,4% YoY.

• ▍Revenue kr 73.24B, +3,1% YoY
• ▍Operating income +43,4% YoY
• ▍Net income +1 284,5% YoY
• ▍Free cash flow −27,8% YoY
• ▍Net margin 3.3%

Revenue kr 71.03B, −10,4% YoY; Operating income +135,0% YoY.

• ▍Revenue kr 71.03B, −10,4% YoY
• ▍Operating income +135,0% YoY
• ▍Net income +99,0% YoY
• ▍Free cash flow +40,3% YoY
• ▍Net margin -0.3%

Revenue kr 79.25B, −30,7% YoY; Operating income −187,6% YoY.

• ▍Revenue kr 79.25B, −30,7% YoY
• ▍Operating income −187,6% YoY
• ▍Net income −235,6% YoY
• ▍Free cash flow −327,2% YoY
• ▍Net margin -25.9%

Revenue kr 114.42B, +47,3% YoY; Operating income +30,1% YoY.

• ▍Revenue kr 114.42B, +47,3% YoY
• ▍Operating income +30,1% YoY
• ▍Net income +38,0% YoY
• ▍Free cash flow +38,4% YoY
• ▍Net margin 13.2%