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Friedrich Vorwerk Group SE (DE:VH2)
XETRA:VH2
RESEARCH TOOLSreports
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Friedrich Vorwerk Group SE
(XETRA:VH2)
Rating:79Outperform
Price Target:
€70.00
▲(14.38%Upside)
Positive Factors
Cash Reserves
Cash and cash equivalents as per FY24 amounted to €177m, exceeding the previous year's figure by €118m.
Financial Performance
The strong 4Q24 performance with sales up 59% YoY and an EBITDA margin improvement of 11ppt YoY to 19.4% adds to the recovery in the project business throughout 2024.
Order Backlog
The order backlog remains strong at €1.1bn, providing good visibility into the coming 12-24 months.
Revenue Guidance
Management specified that the upper end of the revenue guidance of €540-570m will be reached.
Negative Factors
Future Project Awards
Further significant projects, such as those from Sueddeutsche Erdgasleitung and the SuedLink electricity highway, are expected to be awarded from 2Q25 onwards.
Net Liquidity
Net liquidity remains high but has decreased to €112m from €154m in 4Q24.
Friedrich Vorwerk Group SE (VH2) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$1.24B
Dividend Yield0.18%
Average Volume (3M)74.37K
Price to Earnings (P/E)29.0
Beta (1Y)0.49
Revenue Growth47.14%
EPS Growth290.36%
CountryDE
Employees2,001
SectorIndustrials
Sector Strength92
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)N/A
Shares Outstanding20,000,000
10 Day Avg. Volume84,871
30 Day Avg. Volume74,374
Financial Highlights & Ratios
PEG Ratio1.25
Price to Book (P/B)6.05
Price to Sales (P/S)0.00
P/FCF Ratio10.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$64.76Price Target Upside5.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Friedrich Vorwerk Group SE Business Overview & Revenue Model
Company DescriptionFriedrich Vorwerk Group SE provides various solutions for transformation and transportation of energy in Germany and Europe. It operates through four segments: Natural Gas, Electricity, Clean Hydrogen, and Adjacent Opportunities. The Natural Gas segment comprises infrastructure services and product solutions for the transport and conversion of raw natural gas into treated natural gas; and engages in transporting the natural gas through high-pressure pipelines to processing in filtering and separation plants, compressor stations, storage and measurement systems, LNG terminals, and gas pressure control and measurement systems. The Electricity segment provides infrastructure for the underground transport and conversion of electricity that is generated from non-fossil energy sources, such as wind, solar, hydro, and regenerative resources. This segment is involved in landing offshore electricity and installing high-voltage underground cables through which electricity is transported to transmission networks. The Clean Hydrogen segment provides product solutions and infrastructure services for the conversion of energy from energy sources into hydrogen, and its transportation to consumers, which is done through conversion of renewable energy by electrolysis; and processing and transportation of the clean hydrogen produced through storage systems, compressor stations, pipelines, and gas pressure control and measurement systems. The Adjacent Opportunities segment provides technologies, such as the treatment and cleaning of biogenic and synthetic gases; heat extraction technologies used in district heating; solutions for the transportation of drinking and wastewater; and specialty solutions for the chemical and petrochemical industry. Friedrich Vorwerk Group SE was founded in 1962 and is headquartered in Tostedt, Germany.
How the Company Makes MoneyFriedrich Vorwerk Group SE generates revenue through a combination of project-based contracts and long-term service agreements. The company's primary revenue streams come from the design and construction of pipeline and power cable infrastructure for natural gas, hydrogen, and electricity. Friedrich Vorwerk collaborates with utility companies, government entities, and industrial clients to provide tailored solutions that facilitate efficient energy distribution. Significant partnerships with major energy providers and involvement in large-scale infrastructure projects contribute to the company's earnings. Additionally, the company benefits from growing investments in renewable energy infrastructure, which drive demand for its specialized services.
Friedrich Vorwerk Group SE Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q3-2024)
| % Change Since: 1.82%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call presents a positive outlook with strong revenue growth, improved profitability, and successful recruitment efforts. The company has maintained a high order backlog and is involved in significant projects, although there is some uncertainty regarding future government policies and weather-dependent project execution.Q3-2024 Updates
Positive Updates
Revenue Growth
Revenues increased by 32% in Q3 to EUR 145 million, with total revenue for the first 9 months reaching EUR 339 million, a growth of 23%.
Profitability and EBITDA
EBITDA more than tripled from EUR 6.8 million to over EUR 25 million in Q3, with an EBITDA margin improvement from 2.1% to 13.7%.
Order Backlog and Selectivity
The order backlog remains high at EUR 1.2 billion, allowing the company to be selective in acquiring new projects.
Recruitment Success
Employee growth exceeded the annual target of 10%, reaching a 14% increase by the end of Q3.
Project Developments
Friedrich Vorwerk is involved in significant projects like the A-Nord and the newly developed Etzel-Wardenburg pipeline project.
Negative Updates
Uncertainty in Future Projects
Potential changes in government policies could impact future projects, especially the CO2 pipeline grid.
Dependency on Weather Conditions
Project execution, particularly grid projects, is highly dependent on favorable weather conditions.
Company Guidance
During the VH2.DE Q3 2024 earnings call, the company provided optimistic guidance, highlighting significant achievements and future expectations. They reported a 32% increase in Q3 revenues to EUR 145 million, driven by their flagship project, A-Nord. They achieved a remarkable 13.7% EBIT margin, with Q3 EBITDA more than tripling from EUR 6.8 million to over EUR 25 million. For the first nine months, revenue reached EUR 339 million, a 23% increase, resulting in a 14.7% EBITDA margin. The company raised its 2024 full-year guidance, expecting revenues between EUR 430 million and EUR 460 million and an EBITDA margin of 14% to 15%. CEO Torben Kleinfeldt emphasized a strong order backlog and a successful recruiting strategy that resulted in 14% employee growth, surpassing their 10% target. The company remains focused on securing new projects, particularly in energy infrastructure, while maintaining strong profitability and exploring M&A opportunities. Overall, the outlook for Friedrich Vorwerk Group remains robust, with ambitions to reach EUR 1 billion in sales by the early 2030s.Friedrich Vorwerk Group SE Financial Statement Overview
Summary
Friedrich Vorwerk Group SE has exhibited strong financial health with impressive revenue growth and profitability improvements. The balance sheet remains robust with low leverage, while cash flow metrics highlight excellent cash generation capabilities.Income Statement
Friedrich Vorwerk Group SE has demonstrated strong revenue growth, with a notable increase of 33.4% in 2024 compared to 2023. The gross profit margin for 2024 stands at 52.5%, indicating efficient cost management, while the net profit margin increased to 7.2%, showcasing improved profitability. EBIT and EBITDA margins are also solid at 10.6% and 15.6% respectively, reflecting robust operational performance.88
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.11, indicating minimal leverage. The return on equity improved to 17.4% in 2024, highlighting effective use of shareholder funds. The equity ratio stands at 46.9%, suggesting a strong equity base relative to total assets.85
Very Positive
Cash Flow
Friedrich Vorwerk Group SE has shown significant improvement in free cash flow, growing from €19.35 million in 2023 to €119.75 million in 2024. The operating cash flow to net income ratio is 4.35, indicating strong cash generation relative to earnings. Additionally, the free cash flow to net income ratio is 3.35, underscoring efficient cash conversion.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 498.35M | 373.36M | 368.16M | 279.07M | 291.79M | Gross Profit |
| 261.61M | 167.97M | 164.34M | 158.73M | 151.97M | EBIT |
| 52.94M | 30.93M | 31.09M | 37.51M | 43.47M | EBITDA |
| 75.20M | 31.91M | 48.08M | 51.10M | 47.34M | Net Income Common Stockholders |
| 35.77M | 10.15M | 17.14M | 26.77M | 30.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 174.65M | 56.53M | 45.88M | 108.28M | 45.25M | Total Assets |
| 437.56M | 311.28M | 308.08M | 290.46M | 176.91M | Total Debt |
| 22.37M | 16.53M | 21.19M | 27.99M | 17.40M | Net Debt |
| -152.28M | -40.00M | -24.68M | -80.29M | -27.85M | Total Liabilities |
| 232.55M | 139.73M | 144.90M | 137.99M | 113.31M | Stockholders Equity |
| 205.04M | 171.50M | 162.81M | 151.41M | 63.60M |
| Cash Flow | Free Cash Flow | |||
| 119.75M | 19.35M | -42.37M | 8.27M | 12.92M | Operating Cash Flow |
| 155.58M | 50.42M | -10.26M | 29.82M | 33.32M | Investing Cash Flow |
| -35.60M | -29.47M | -32.56M | -28.46M | -20.40M | Financing Cash Flow |
| -1.87M | -10.31M | -19.58M | 61.66M | -20.14M |
Friedrich Vorwerk Group SE Technical Analysis
Positive
61.20
Price Trends
57.54
Positive
46.38
Positive
36.09
Positive
Market Momentum
0.93
Positive
59.03
Neutral
73.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:VH2, the sentiment is Positive. The current price of 61.2 is above the 20-day moving average (MA) of 60.30, above the 50-day MA of 57.54, and above the 200-day MA of 36.09, indicating a bullish trend. The MACD of 0.93 indicates Positive momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 73.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:VH2.
Friedrich Vorwerk Group SE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.24B | 29.04 | 22.02% | 0.18% | 47.14% | 290.36% | |
65 Neutral | $4.44B | 12.22 | 5.28% | 248.14% | 4.08% | -12.12% | |
| €3.42B | 4.92 | 14.97% | 1.92% | ― | ― | ||
| €10.55B | 34.59 | 29.22% | 1.55% | ― | ― | ||
| €8.85B | 29.42 | 3.25% | 6.20% | ― | ― | ||
| €24.61B | 6.13 | 12.22% | 3.32% | ― | ― | ||
| €442.59M | 6.82 | -16.90% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
DE:VH2
Friedrich Vorwerk Group SE
61.20
43.19
239.77%
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Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.