9H·

Stillborn or hidden potential?

$CADLR (+1.32%) has an order backlog of more than three times its annual turnover and has almost doubled its specialized fleet to deal with this problem. This should actually be accompanied by decent growth and the already expanded fleet should reduce the capex ratio, which will benefit FCF. Why is the share price not reflecting this, with a P/E ratio of less than 10 for the coming periods? Is it simply undervalued, is it due to political risk or what is the reason?

Are there any opinions on this in the community?

#rtw

@EpsEra

3 Comments

Elsa E.@EpsEra

Stillborn or hidden potential? For my part, I am clearly leaning towards the latter! The order backlog of over 3x annual sales is sensational and will secure Cadeler's income for years to come. With its expected very low P/E ratio, the share is currently only held back by the high investment costs for the new special fleet. As soon as this CapEx phase ends, I expect a strong increase in free cash flow, which should lead to an urgent revaluation. Clear hidden potential for patient investors. 💎🚀

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Keineui@Keineui

@EpsEra great. Thanks for the quick reply. That confirms my view 100%. If there's an additional tailwind from politics, all the better. Then I'll see how strongly I go into it.

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PikaPika0105@PikaPika0105

I also think they have a lot of potential and remain invested. They are one of the few players in this field and offshore wind will continue to grow, as it is not only clean energy, but in my opinion also the only sensible use of wind turbines. And the existing turbines will require constant maintenance, which means permanent ARR for Cadeler. Forecasts are also good. I think the topic is just a bit unsexy at the moment.

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