Adam Crocker of Logbook Investments presented his in-depth investment thesis on Vestas (Denmark: VWS) at European Investing Summit 2019.
Vestas is the world’s largest manufacturer of wind turbines. The company benefits from 1) Scale barriers deterring competitive entrants, 2) Service revenue, expanded from mid-single digits to 18% of total, providing greater predictability and profitability, and 3) Secular industry growth as the world shifts from fossil fuels to renewable energy sources. The company has also dramatically transformed its supply chain since 2012, resulting in a more agile and cash generative enterprise. Through the cycle, management expects to earn EBIT margin >10% , ROIC >20% and positive annual FCF. As investors witness Vestas’ reduced cyclicality based on the above factors, in addition to wind recently becoming the lowest cost unsubsidized source of energy, this growing company is likely to trade above its current 12x FY19E EV/EBIT.
The full session is available exclusively to members of MOI Global.
Members, log in below to access the full session.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:
About the instructor:
Adam Crocker, CFA is Founder and Chief Investment Officer of Logbook Investments, a value fund with core positions based on insights from books. Logbook launched in 2016 and is seeded by his former employer. Prior to Logbook, Adam was a co-manager at Metropolitan Capital Advisors, a long/short equity fund founded in 1992. Before joining Metropolitan, he was an analyst at Morgan Stanley Investment Management conducting research on behalf of growth and value investment teams. He began his career in Leveraged Finance investment banking at JPMorgan. Adam is a 2005 graduate of the Value Investing Program at Columbia Business School and has an undergraduate degree in Economics from Columbia University.
About The Author: MOI Global Editorial Team
The MOI Global Editorial Team, led by John Mihaljevic, CFA, includes community builders, event organizers, writers, editors, research associates, security analysts, and fanatical member support advocates. Our sole purpose is to serve the members of MOI Global as well as we possibly can in order to help them learn, invest intelligently, and build lifelong friendships with like-minded people.
Who is MOI Global? In recent years, The Manual of Ideas has expanded to become more than simply “the very best investing newsletter on the planet” (Mohnish Pabrai). We are now a thriving global community of intelligent investors, connected through great ideas, thought-provoking interviews, online conferences, live member events, and much more.
Members of MOI Global enjoy complimentary access to a growing array of resources and content related to the art of intelligent investing. Members also enjoy preferential access to selected offline events as well as exclusive access to other events hosted by MOI Global, including the Zurich Project Summit, the Latticework Conference, and Ideaweek.
More posts by MOI Global Editorial Team