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Stock Analysis & ValuationNordex SE (NDX1.DE)

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Previous Close
33.80
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)30.29-10
Intrinsic value (DCF)7.98-76
Graham-Dodd Method2.14-94
Graham Formula0.78-98

Strategic Investment Analysis

Company Overview

Nordex SE is a leading global player in the onshore wind turbine industry, specializing in the development, manufacturing, and distribution of multi-megawatt wind turbines. Headquartered in Hamburg, Germany, Nordex operates through two key segments: Projects and Services. The Projects segment focuses on acquiring rights and developing infrastructure for wind power systems, while the Services segment provides maintenance, remote monitoring, spare parts, and technical enhancements for existing wind farms. Founded in 1985, Nordex has established itself as a key contributor to the renewable energy sector, aligning with global decarbonization efforts. The company's strong presence in Europe, the Americas, and emerging markets positions it well to capitalize on the growing demand for sustainable energy solutions. With a market capitalization of approximately €4.13 billion, Nordex plays a critical role in the industrial machinery sector, driving innovation in wind energy technology.

Investment Summary

Nordex SE presents a compelling investment opportunity in the renewable energy sector, benefiting from global tailwinds supporting wind energy adoption. The company's diversified revenue streams—spanning turbine sales, project development, and maintenance services—provide stability. However, investors should note the inherent risks, including high beta (1.75), indicating volatility relative to the market, and thin net margins (€8.8 million net income on €7.3 billion revenue). Positive operating cash flow (€429.8 million) and a solid cash position (€1.15 billion) suggest financial resilience, but capital-intensive operations and competitive pressures could weigh on profitability. The lack of dividends may deter income-focused investors, but growth-oriented portfolios may find Nordex attractive given its role in the energy transition.

Competitive Analysis

Nordex SE competes in the highly competitive onshore wind turbine market, where scale, technological innovation, and cost efficiency are critical. The company differentiates itself through its focus on multi-megawatt turbines, which cater to utility-scale projects, and its strong service segment that ensures recurring revenue. However, Nordex faces intense competition from larger players like Vestas and Siemens Gamesa, which benefit from greater R&D budgets and global supply chains. Nordex's competitive advantage lies in its agility and specialization in onshore wind, avoiding the complexities of offshore projects that some rivals pursue. Its geographic diversification helps mitigate regional demand fluctuations, but reliance on government subsidies and policy support remains a vulnerability. The company's ability to maintain profitability amid rising input costs and supply chain disruptions will be crucial in sustaining its market position.

Major Competitors

  • Vestas Wind Systems A/S (VWS.DC): Vestas is the global leader in wind turbine manufacturing, with a strong presence in both onshore and offshore markets. Its extensive R&D capabilities and economies of scale give it a cost advantage over Nordex. However, Vestas' broader focus may dilute its onshore specialization, where Nordex competes effectively. Vestas also faces margin pressures due to its exposure to volatile offshore projects.
  • Siemens Gamesa Renewable Energy (SGRE.MC): Siemens Gamesa is a major player in wind energy, with strengths in offshore turbines and a strong service network. Its technological edge and Siemens' backing provide stability, but recent operational challenges and restructuring have impacted profitability. Nordex's pure-play onshore focus allows it to avoid the complexities of Siemens Gamesa's offshore segment.
  • General Electric (GE Renewable Energy) (GE): GE Renewable Energy is a key competitor with advanced turbine technology and a strong U.S. market presence. Its financial resources and diversified industrial base provide resilience, but GE's broader corporate struggles have affected its renewable energy focus. Nordex's independent structure allows for more dedicated wind energy investment.
  • Siemens Energy AG (ENR.DE): Siemens Energy, through its stake in Siemens Gamesa, competes indirectly with Nordex. Its strengths include integrated energy solutions and strong R&D, but its wind business has faced profitability issues. Nordex's leaner operations may offer better agility in the onshore segment.
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