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Orsted A/S ORSTED

Morningstar Rating
DKK 388.80 −1.60 (0.41%)
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Company Report

European Utilities Edged Up in Q2 on Soaring Power Prices, High Interest Rates Still a Drag

Utilities have reversed part of their first quarter’s fall, thanks to a strong rebound in power prices. Moreover, the deep undervaluation of renewables developers has driven takeovers by big investment firms at very high multiples. Neoen’s main shareholders accepted an offer at 18 times the EBITDA. The sector is still significantly lagging the market in 2024 because of high interest rates. Should they fall, it would boost the sector.

Price vs Fair Value

ORSTED is trading at a 348% premium.
Price
DKK 388.80
Fair Value
DKK 181.00
Uncertainty
Medium
1-Star Price
DKK 726.00
5-Star Price
DKK 382.00
Economic Moat
Qtdh
Capital Allocation
Cgykncn

Bulls Say, Bears Say

Bulls

The hike of the ceiling price for 2024 U.K. offshore wind auctions and the extension of capital allowances are positive for the largest offshore wind market in the world, outside of China, where Orsted is the leader. The capital allowances will increase the value creation of Hornsea 3.

Bears

The business plan presented in Feb. 2024 hinges on material divestment including the farm-down of Hornsea 3. Failing to deliver them could force Orsted to resort to a rights issue.

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News

Trading Information

Previous Close Price
DKK 390.40
Day Range
DKK 385.40392.50
52-Week Range
DKK 248.00669.00
Bid/Ask
DKK 388.00 / DKK 388.40
Market Cap
DKK 163.39 Bil
Volume/Avg
311,292 / 565,334

Key Statistics

Price/Earnings (Normalized)
8.57
Price/Sales
3.08
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Danish company Orsted was named Dong Energy until the sale of all its oil and gas fields to Ineos in 2017, soon after the May 2016 initial public offering. Orsted is now focused on renewable assets, especially offshore wind farms. It operated 8.9 gigawatts of offshore wind farms at the end of 2023. The United Kingdom is the biggest country of operation, ahead of Germany and Denmark. The group intends to develop its footprint outside Europe with projects in Taiwan and in the U.S. Orsted also operates 4.8 GW of onshore wind and solar assets concentrated in the United States. The company is also involved in more traditional utilities business like conventional power plants and gas supply, but these activities are noncore.
Sector
Utilities
Industry
Utilities - Renewable
Stock Style Box
Large Growth
Total Number of Employees
8,900

Competitors

Valuation

Metric
ORSTED
IBE
RWE
Price/Earnings (Normalized)
8.5712.8946.91
Price/Book Value
2.791.410.77
Price/Sales
3.081.660.99
Price/Cash Flow
14.057.5512.05
Price/Earnings
ORSTED
IBE
RWE

Financial Strength

Metric
ORSTED
IBE
RWE
Quick Ratio
1.020.600.56
Current Ratio
1.370.771.56
Interest Coverage
−3.354.983.75
Quick Ratio
ORSTED
IBE
RWE

Profitability

Metric
ORSTED
IBE
RWE
Return on Assets (Normalized)
−2.42%4.79%1.36%
Return on Equity (Normalized)
−10.60%14.40%4.64%
Return on Invested Capital (Normalized)
−2.73%7.51%2.60%
Return on Assets
ORSTED
IBE
RWE
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Utilities - Renewable Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Constellation Energy Corp
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Verbund AG ADR
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Verbund AG Class A
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Trnzt$28.2 Bil
Orsted A/S ADR
DNNGY
Nzt$23.5 Bil
Orsted A/S
DOGEF
Dcp$23.5 Bil
CEZ a.s
CZAVF
Whqqh$21.8 Bil
China Longyuan Power Group Corp Ltd ADR
CLPXY
Bhld$15.5 Bil
Brookfield Renewable Partners LP
BEP
HsynyslxmVzp$7.2 Bil
Brookfield Renewable Corp Ordinary Shares - Class A (Sub Voting)
BEPC
ZkppdvmstsHhbjf$5.3 Bil

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