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Vestas Wind Systems A/S

VWDRY
43
Industrial - Machinery · Industrials
Price
$9.03
+0.07 (+0.78%)
Market Cap
$26.59B
Exchange
Other OTC
Winston Score
43
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Vestas Wind Systems is a Danish company that builds wind turbines — the giant spinning machines that generate electricity from wind. It sells turbines to energy companies, utilities, and governments that want to produce clean electricity without burning fossil fuels. Vestas is one of the largest wind turbine manufacturers in the world, with turbines installed across more than 90 countries.

The company makes money by selling turbines and, increasingly, through long-term service contracts that maintain those turbines after installation. This service business provides steadier, recurring revenue compared to one-time equipment sales. Vestas operates globally, with strong positions in Europe, the Americas, and Asia Pacific, and its large installed base of turbines gives it a competitive edge in winning maintenance contracts. The main risk is that raw material costs and supply chain pressures can squeeze margins, as seen in its relatively thin gross margin, while the key growth driver is rising global demand for renewable energy as countries move away from fossil fuels.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

>+1,000% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$424M/ year

Rising (+12% vs prior year)

2.3% of revenue

Below sector average (4%)

R&D investment increasing — building for the future

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Runway

~3 years

$5.5B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$5.5B cash & investments at current burn rate

Growth context

Vestas Wind Systems A/S is growing revenue at 14% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.4% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 3.02B (2021) → 3.01B (2025)

Score breakdown

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Quality

Gross Margin
11.9%
Thin — 11.9% gross margin
Operating Margin
3.2%
Thin — 3.2% operating margin
ROCE
2.7%
Weak — 2.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+6.8%
Slow sales growth (6.8% YoY)
EPS YoY
+49.5%
Earnings growing fast (49.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
226%
Turns 226% of profit into real cash
FCF Margin
4.6%
Thin free cash flow (4.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.20
Conservative — low debt load (0.20)
Interest Cover
34.96x
Comfortably covers interest (35.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
31.5x
Pricey — P/E 31.5

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+14.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (31.5 → 17.3)

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Dividends

Dividend Yield
0.40%
Small dividend — 0.40% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
-68.9%
Dividend cut (-68.9% YoY) — warning sign

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