Analysis of Nordex 2014

Company: Nordex

ISIN DE000A0D6554 | WKN A0D655

Business: A German wind power producer. They stand on three pillars: Wind turbines (single sale of units), Project services (planning and selling entire wind power parks) & Service (which includes also upgrading of older units).

Active: Present in 34 countries (mainly Europe and America) with 6,179 installed wind turbines.

P/E: 119.7

Comment: I was hoping that Nordex would be looking good due to that the share price has increased so much since the last analysis but that is just it. Yes they as a company has done well so no loss this time but the share price is a but crazy...

Here you can find the previous analysis of Nordex.

The P/E for Nordex is insane high with 119.7 and the P/B is also crazy high with 3.3 which then gives us a no go from Graham. The earnings per share is embarrassing low with only 1% and the ROE is the same with 2.8%. The book to debt ratio is down at 0.5 which I also find a bit too low.
in the last six years they have however managed to accomplish a yearly revenue growth rate of 3.1% which I find ok and this then gives us a motivated P/E of 12 to 15 which means that Nordex is highly overvalued by market today and they need to seriously push up their earnings to make the shoe fit.
They also do not pay out any dividends which I of course do not like.

Conclusion: Graham as well as I am still saying no to Nordex and yet the share price has increased with 258% since I made the last analysis. A two bagger would have been good in any stock portfolio! The P/E is very high today as is the P/B and the ROE is silly low with no dividend payments. Nordex needs to push up their earnings to levels that I doubt they can reach before I find them of interest again and if I would have own share in Nordex I would have been a bit worried and probably sold them because even if they triple their earnings they would still be traded at a P/E of 30 and that is simply to high considering their growth rate in my opinion.

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