VESTAS

Analysis of Vestas share price

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If you are considering investing in the Vestas stock price, or if you want to add this stock to your portfolio, we recommend that you take a look at the information we are going to give you in this article, which will help you make a good analysis of it. We'll take a closer look at the company's operations and revenue streams, its various competitors in the market and its recent strategic partnerships. We will also look at the data and publications that should be taken into account in the fundamental analysis of this stock.

Elements that can influence the price of this asset:

Analysis N°1

First of all, it will be necessary to follow the evolution of the share of green energies in the world market and more particularly the wind energy market. The support of governments and global organizations should also be monitored.

Analysis N°2

Changing regulations for companies in their production and use of energy will also influence this stock by helping Vestas to become more profitable and find new customers.

Analysis N°3

Of course, we will also have to keep an eye on competition in the wind power market, which is becoming increasingly strong with the entry of new major players in this segment and in renewable energies in general.

Analysis N°4

Vestas may also enter into strategic partnerships and alliances with other companies that could also have a decisive impact on its growth and market share.

Analysis N°5

Finally, the company's financial results should also be monitored with the annual and quarterly publications, making sure to compare them with analysts' expectations and with the objectives directly set by the group.

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General presentation of Vestas

We will now look at the company Vestas and its business. The better you know the company, the more likely you are to be able to understand its future challenges and growth opportunities.

The Vestas Wind Systems Group is a Danish energy company and the world's leading manufacturer of wind energy systems.

To better understand the activities of this company, it is possible to divide them into different divisions according to the share of turnover they generate and in this way:

  • Sales of wind turbines and wind energy production systems account for the major part of the turnover with 86.1% of the turnover. In 2020, the group sold 5,239 turbines and systems with a capacity of 17,212 MW and also sells spare parts.
  • Finally, the remaining 13.9% of sales came from services, in particular maintenance services and the signing of warranty extension agreements.

It is also interesting to know the geographical distribution of the Vestas Group's activities. Vestas generates 5.6% of its sales in Denmark, 30.2% in Europe, the Middle East and Africa, 39.1% in the United States, 10.1% in the Americas and 15% in Asia Pacific.

Analysis of Vestas share price
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The major competitors of Vestas

A good understanding of the Vestas Group's competitors is also important if you want to build a reliable strategy for this stock. Vestas faces a number of strong competitors in its industry, the most important of which are

Siemens Gamesa 

This Spanish company, listed on the Ibex 35 index, is Europe's second-largest manufacturer of wind turbines and one of the world's leading companies in the design, manufacture, sale, installation and operation of its wind turbines. As a developer of energy production plants, Gamesa also promotes, builds and operates wind farms.

General Electric 

This American conglomerate divides its activities into different branches, including the energy branch, since the group is a supplier of large equipment for the generation, transmission and distribution of electricity, including my smart grids, steam turbine and combustion turbine power plants, alternators associated with wind turbines and grid management software. It is also a major player in the desalination and wastewater treatment segment.

Goldwind

This Chinese group whose official name is Xinjiang Goldwind Science & Technology is a company specializing in the production of wind turbines. The group is still owned by the Chinese government and is currently the world leader in its industry in terms of production. It is also listed on the Shenzhen and Hong Kong stock exchanges and employs more than 1500 people.

Nordex 

Finally, the last major competitor of Vestas is the German group Nordex which is a company specialized in the manufacture, installation and repair of wind turbines throughout the world. The company is listed on the TecDAX stock index.


The major partners of Vestas

While the Vestas Group faces many competitors in its industry, it can also form strategic partnerships with other companies to boost its development and growth. Here are two concrete examples of this type of recent alliance:

IBM 

First of all, the Vestas Group has set up a partnership with IBM with the aim of using its big data analytics software specialising in smart grids and with the aim of improving the positioning of wind turbines in order to optimise energy production. The analysis of the once time-consuming problem of wind turbine positioning is now possible in less than an hour thanks to this software and the IBM Firestorm super computer. This allows Vestas engineers to monitor the performance of the turbine in real time and analyse the reaction of each blade to changes in the weather.

Hempel

In 2020, the Vestas Group also signed a strategic partnership with the coating solutions provider Hempel, with the aim of cooperating on innovative solutions in the protection of wind turbine surfaces. Both companies share the ambition to reduce surface treatment costs and support sustainable coating solutions. At the same time, the Hempel Group will continue to help Vestas remain competitive throughout the process of achieving carbon neutrality by 2030, especially in Colorado, USA, where Vestas operates one of the world's largest wind tower manufacturing facilities.

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Frequently Asked Questions

What factors can drive Vestas' share price?

In order to anticipate future changes in the Vestas share price, you must of course be aware of the factors that can influence it. The price of this stock will be affected by the supply and demand for shares and therefore by the interest in the company and its future growth potential. It is therefore necessary to use fundamental analysis to detect buy and sell signals for this stock.

How do I make a chart analysis of the Vestas share price?

Chart analysis is based on the use of several technical indicators. Among the most commonly used are the RSI indicator, stochastic indicators, moving averages, MACD and Bollinger bands. But you can also use strategic levels such as pivot points and support and resistance levels.

Where can I buy Vestas shares online?

If you have a traditional stock market product such as a securities account, you can buy Vestas shares and add them to your stock market portfolio. But you can also decide to trade directly on the price of this stock by using derivatives such as CFDs or contracts for difference which are offered by online brokers in the market.

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