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Windar Photonics (LSE:WPHO) is a penny inventory that has completed tremendously nicely over the previous 5 years. On this time, it has gone from 18p to 52p, a acquire of almost 200%.
Up to now month, nonetheless, the Windar share worth has fallen 20%. This leaves it a way beneath its common 12-month worth goal.
Let’s take a better take a look at this UK penny share to see if it’s value contemplating.
What’s Windar?
This AIM-listed firm makes LiDAR sensors that assist wind generators function extra effectively. These measure wind velocity and route, permitting a turbine to routinely regulate its blades to seize extra vitality whereas lowering mechanical stress.
Over time, the result’s improved output and decrease upkeep prices (essential for wind farm operators searching for to maximise returns). Windar says its flagship WindEye sensor gives clients with a return on funding inside one to 4 years.
What units the agency aside is price. Its LiDAR programs use patented compact semiconductor laser know-how, changing the costly fibre-amplified lasers generally utilized by opponents.
Financials
This clearly all sounds very optimistic. So, what concerning the firm’s financials?
Properly, the very first thing to notice is that Windar remains to be loss-making. Within the first half of 2025, it reported a €0.7m loss after tax, wider than final 12 months’s €0.3m. Opposed foreign money modifications had a €0.5m influence, primarily from a weaker US greenback and Chinese language renminbi in opposition to the euro.
Arguably, these are the principle dangers right here. Windar has no confirmed observe document of profitability, that means even comparatively small foreign money fluctuations can have an outsized have an effect on. In the meantime, US tariffs are a headache for all companies.
On the plus aspect, the corporate is having fun with robust industrial momentum. In August, it gained a US order for $2.6m to retrofit Vesta‘s V82s, whereas its Nexus OS software program helped gross margin rise 2 share factors to 62%.
In the meantime, first-half income was up 18% to €2.7m, with heavier gross sales anticipated within the second half. Administration is assured that full-year expectations might be met, and this could see income greater than double to €9.55m. Metropolis analysts additionally anticipate a first-ever revenue, albeit a small one.
In 2026, gross sales are tipped to rise to €14.6m. And there’s a €4.4m revenue on the playing cards, if forecasts show appropriate.
Lastly, the stability sheet is in good condition, with a web money place of €4.9m on the finish of June.
With gross sales and orders for 2025 already standing at 138% of 2024 income on the finish of August 2025 and with the present money place, the corporate is nicely positioned to ship on its appreciable potential.
Windar CEO Jørgen Korsgaard Jensen.
Goal
Based mostly on present forecasts for 2026, the inventory’s ahead price-to-earnings is simply 14. That appears enticing for a development firm with a big addressable market (it’s focusing on development in Europe, America and Asia).
Subsequently, it’s hardly shocking that the typical 12-month share worth goal among the many two analysts protecting the inventory is 95p. That’s 80% greater than the present degree, implying {that a} £10,000 funding may change into £18,000, have been these specialists to show appropriate.
Naturally, this far-higher goal may not come to fruition. However with a transparent path in the direction of profitability and what seems to be like an undemanding valuation, I reckon this inventory is value a better take a look at 52p.
