Vestas: New Competitors On The Horizon

Georg Investing
163 Followers

Summary

  • Although the drive towards decarbonization is progressing, the environment for wind turbine manufacturers has been difficult for years.
  • Vestas appears to be best positioned among Western wind turbine manufacturers based on its market share, management team and strong track record.
  • It was therefore the only Western manufacturer to turn a profit in 2021.
  • However, given supply chain constraints and new competitors appearing on the scene, I watch and wait for an entry point.
2 Vestas Windkraftanlagen im Rap-Feld. Landwirtschaftliche Fläche mit blauem Himmel. Luftbild. Seitenansicht.

In Stock/iStock Editorial via Getty Images

Investment Thesis

I consider Vestas (VWDRY, VWSYF) as best positioned among Western wind turbine manufacturers. However, profit margin have been declining for years in the industry. Given the challenging environment, which will definitely remain in 2022 and probably afterwards, wait on the sidelines.

This article was written by

163 Followers
LT investor. Growth & dividend-paying stocks. Less is more. Keep it simple. You don't need complex formulas to invest successfully. However, keep an eye on a margin of safety. Given my job in the credit risk department of an international bank I prefer to write under an alias. I'm a CFA Charterholder and hold a MSc in Finance. My passion for stocks & capital markets goes back to my mid-teens. I’ve been an investor and active in the financial industry for more than 10 years. I’m fascinated by the idea of FIRE (Financial Independence, Retire Early).

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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