Windar Photonics (LSE:WPHO) is a penny stock that has done tremendously well over the past five years. In this time, it has gone from 18p to 52p, a gain of nearly 200%.
In the past month, however, the Windar share price has fallen 20%. This leaves it some way below its average 12-month price target.
Let’s take a closer look at this UK penny share to see if it’s worth considering.
What is Windar?
This AIM-listed company makes LiDAR sensors that help wind turbines operate more efficiently. These measure wind speed and direction, allowing a turbine to automatically adjust its blades to capture more energy while reducing mechanical stress.
Over time, the result is improved output and lower maintenance costs (important for wind farm operators seeking to maximise returns). Windar says its flagship WindEye sensor provides customers with a return on investment within one to four years.
What sets the firm apart is cost. Its LiDAR systems use patented compact semiconductor laser technology, replacing the expensive fibre-amplified lasers commonly used by competitors.
Financials
This obviously all sounds very positive. So, what about the company’s financials?
Well, the first thing to note is that Windar is still loss-making. In the first half of 2025, it reported a €0.7m loss after tax, wider than last year’s €0.3m. Adverse currency changes had a €0.5m impact, mainly from a weaker US dollar and Chinese renminbi against the euro.
Arguably, these are the main risks here. Windar has no proven track record of profitability, meaning even relatively small currency fluctuations can have an outsized affect. Meanwhile, US tariffs are a headache for all firms.
On the plus side, the company is enjoying strong commercial momentum. In August, it won a US order for $2.6m to retrofit Vesta‘s V82s, while its Nexus OS software helped gross margin rise 2 percentage points to 62%.
Meanwhile, first-half revenue was up 18% to €2.7m, with heavier sales expected in the second half. Management is confident that full-year expectations will be met, and this should see revenue more than double to €9.55m. City analysts also expect a first-ever profit, albeit a small one.
In 2026, sales are tipped to rise to €14.6m. And there’s a €4.4m profit on the cards, if forecasts prove correct.
Finally, the balance sheet is in good shape, with a net cash position of €4.9m at the end of June.
With sales and orders for 2025 already standing at 138% of 2024 revenue at the end of August 2025 and with the current cash position, the company is well positioned to deliver on its considerable potential.
Windar CEO Jørgen Korsgaard Jensen.
Target
Based on current forecasts for 2026, the stock’s forward price-to-earnings is just 14. That looks attractive for a growth company with a large addressable market (it’s targeting growth in Europe, America and Asia).
Therefore, it’s hardly surprising that the average 12-month share price target among the two analysts covering the stock is 95p. That’s 80% higher than the current level, implying that a £10,000 investment could become £18,000, were these experts to prove correct.
Naturally, this far-higher target might not come to fruition. But with a clear path towards profitability and what looks like an undemanding valuation, I reckon this stock is worth a closer look at 52p.
