Orsted is a publicly traded renewable utilities company based in Denmark. It recently reported an impairment on US operations that saw its stock price tumble 25%.
Orsted is a global leader in offshore wind projects with onshore and solar production aswell. It also has bets on futuristic technologies like renewable hydrogen and bioenergies. Unlike rivals, Orsted is profitable. Among competitors that are, Orsted has higher profit margins along with a decent dividend of around 3%. Its bond and bank loans only mature after 2026, peaking in 2031. Cash and securities are around half of total debt, providing liquidity in case of emergency. Its cashflows are steady and have been increasing for over 3 years. Orsted trades at a p/e ratio of 17 with price/sales of 1.7 and price/book of 1.85, not a super cheap bargain but not overly expensive either. One of its most interesting statistics is its 5-year monthly beta of 0.55. This company is set to benefit from American and European global warming advocates in politics and among civilians whose broader popular opinions will be shaped by climate action. I think this stock will outperform in the short-term with American stimulus as well in the long-term over the next 3-7 years. It will surpass its previous peak in January 2021 when it was triple its current price at a much lower earnings level.
I own and recommend shares of Orsted (ADR: DNNGY)
Devlin Demontigny 