Siemens Healthineers AG (SHL) AI Stock Analysis

• Market Cap: €47.02B
• Dividend Yield: 2.13%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.12
• Revenue Growth: 4.53%
• EPS Growth: 10.12%
• Country: DE
• Employees: 72,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.49
• Shares Outstanding: 1,128,000,000
• 10 Day Avg. Volume: 1,423,722
• 30 Day Avg. Volume: 1,318,446
• PEG Ratio: 2.46
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 22.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €53.57
• Price Target Upside: 27.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 2.31
• Revenue Forecast (FY): €23.93B

• Rating: 58 Neutral
• Price Target: €43.00 ▲(2.04% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by stable underlying profitability and manageable leverage but held back by weak reported top-line and softening free-cash-flow momentum. Technicals are notably bearish (below key moving averages with negative MACD), while valuation is moderate and earnings-call guidance is constructive but constrained by China and tariff/FX headwinds.

Positive Factors

Margin Expansion & Profitability

Sustained gross and net margin improvement with ROE rising to ~11–12% indicates durable operating leverage and capital efficiency. This supports long-term reinvestment in R&D, steady dividend policy and resilience to cyclical pressure across the med‑tech product portfolio.

Segment & Product Strength

Concurrent growth across Imaging, Varian and Advanced Therapies points to diversified, high‑value revenue streams. Varian’s consistent high single‑digit growth and integrated oncology/imaging capabilities provide defensible market positions and cross‑selling synergies that sustain mid‑term revenue and margin durability.

Manageable Leverage

Leverage below equity and an improving ratio signal a prudent capital structure for a large med‑tech. Manageable debt preserves strategic optionality for R&D, bolt‑on acquisitions or capital returns while still allowing the firm to fund installation and service networks that underpin recurring revenue.

Negative Factors

Sharp Reported Revenue Decline (TTM)

A ~34% TTM revenue contraction materially weakens top‑line visibility and strains the margin recovery narrative. Such a steep decline suggests demand, FX, and mix pressures that could require sustained pricing, product mix improvement, or market recovery to restore prior organic growth and investment capacity.

Softening Free Cash Flow Momentum

A meaningful drop in FCF growth (~20%) despite positive absolute cash flow reduces financial flexibility. Weaker cash momentum constrains funding for R&D, cost transformation and deleveraging, and raises sensitivity to working‑capital swings or timing, increasing execution risk over the next several quarters.

China Market Weakness

Persistent flatness in China, a large addressable market, limits medium‑term growth potential. Volume‑based procurement and lack of recovery reduce diagnostics and imaging demand there, making global guidance sensitive to China’s structural dynamics and prolonging the path to return to prior revenue trends.

Siemens Healthineers AG Business Overview & Revenue Model

Company Description

Siemens Healthineers AG, through its subsidiaries, develops, manufactures, and sells a range of diagnostic and therapeutic products and services to healthcare providers worldwide. The company operates through four segments: Imaging, Diagnostics, Varian, and Advanced Therapies. The Imaging segment provides magnetic resonance imaging, computed tomography, X-ray systems, molecular imaging, and ultrasound systems. The Diagnostics segment offers in-vitro diagnostic products and services to healthcare providers in laboratory, molecular and point-of-care diagnostics; and workflow solutions for laboratories and informatics products. The Varian segment provides cancer care technologies, and solutions and services to oncology departments in hospitals and clinics; and technology-enabled optimized workflows, clinical services and consulting capabilities, and digital solutions and applications for managing treatment and therapy. The Advanced Therapies segment offers products that are designed to support image-guided minimally invasive treatments in various areas, such as cardiology, interventional radiology, and surgery; and angiography systems and mobile C-arms, including a robotic-assisted platform for endovascular coronary and peripheral vascular interventions. It also provides equipment performance management, clinical education and e-learning, asset management, and managed departmental services for laboratories and healthcare facilities, as well as consulting and digital health services. The company is headquartered in Erlangen, Germany. Siemens Healthineers AG operates as a subsidiary of Siemens Aktiengesellschaft.

How the Company Makes Money

Siemens Healthineers generates revenue through several key streams, primarily from the sale of medical imaging equipment, laboratory diagnostics products, and healthcare IT solutions. Their revenue model includes direct sales, service contracts, and ongoing maintenance agreements for their installed base of equipment. Additionally, the company benefits from partnerships with healthcare providers and institutions, which often involve long-term contracts for the supply of diagnostic and imaging technology. Other significant revenue sources include software solutions for healthcare management and digital health services, which are increasingly crucial as healthcare systems move towards more integrated and data-driven approaches. The company's investments in research and development also play a critical role in maintaining its competitive edge and driving sales growth through the introduction of innovative products and technologies.

Siemens Healthineers AG Financial Statement Overview

Summary

Margins and returns are solid-to-improving (TTM gross margin ~38%, net margin ~9%, ROE ~11–12%) with manageable leverage (debt-to-equity ~0.82), but the profile is weighed down by a sharp reported TTM revenue decline (-34%) and weakening cash flow momentum (TTM FCF down ~20%, ~69% conversion of net income).

Income Statement

Profitability is solid and improving versus prior years, with TTM (Trailing-Twelve-Months) gross margin around 38% and net margin around 9% (up from ~7% in 2023). Operating profitability has also strengthened versus 2023. The key weakness is growth: TTM (Trailing-Twelve-Months) revenue shows a sharp decline (reported -34%), which outweighs the otherwise steady margin profile and suggests demand/FX/mix volatility or tough comps.

Balance Sheet

Leverage looks manageable for a large med-tech business: debt is below equity (debt-to-equity ~0.82 in TTM (Trailing-Twelve-Months), improving from ~0.92 in 2023). Returns on shareholder capital are steady-to-improving (ROE ~11–12% in 2025/TTM vs ~8% in 2023), indicating decent capital efficiency. The main drawback is still-elevated absolute debt levels, leaving less flexibility if earnings weaken.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) free cash flow of ~€1.8B and free cash flow running at ~69% of net income—reasonable conversion. However, cash flow momentum has softened: TTM (Trailing-Twelve-Months) free cash flow growth is meaningfully negative (about -20%), and operating cash flow as a share of revenue is modest, pointing to working-capital or cash timing pressure versus earnings.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	23.30B	23.38B	22.36B	21.68B	21.71B	18.00B
Gross Profit	8.95B	9.03B	8.47B	7.71B	8.14B	6.95B
EBITDA	4.55B	4.58B	4.22B	3.78B	4.26B	3.52B
Net Income	2.12B	2.14B	1.94B	1.51B	2.04B	1.73B
Balance Sheet
Total Assets	44.27B	44.37B	46.05B	46.68B	49.06B	41.93B
Cash, Cash Equivalents and Short-Term Investments	2.14B	2.17B	2.68B	1.64B	1.44B	1.32B
Total Debt	15.16B	15.06B	16.21B	16.65B	16.65B	14.31B
Total Liabilities	25.79B	26.28B	27.81B	28.55B	29.20B	25.87B
Stockholders Equity	18.43B	18.04B	18.20B	18.08B	19.84B	16.04B
Cash Flow
Free Cash Flow	1.80B	2.27B	1.77B	971.00M	1.40B	2.11B
Operating Cash Flow	2.61B	3.08B	2.47B	1.81B	2.26B	2.78B
Investing Cash Flow	-735.00M	-906.00M	-666.00M	-1.07B	-868.00M	-14.14B
Financing Cash Flow	-2.40B	-2.59B	-1.30B	-380.00M	-1.40B	11.99B

Siemens Healthineers AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SHL, the sentiment is Neutral. The current price of 42.14 is above the 20-day moving average (MA) of 41.35, below the 50-day MA of 42.78, and below the 200-day MA of 44.64, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 79.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:SHL.

Siemens Healthineers AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	76 Outperform	€55.78B	18.87	10.32%	1.82%	1.47%	9.64%
AFX	65 Neutral	€2.43B	16.81	6.79%	1.50%	7.82%	-19.80%
FRE	62 Neutral	€28.38B	25.08	7.50%	2.05%	0.63%	―
SHL	58 Neutral	€47.02B	22.28	11.45%	2.13%	4.53%	10.12%
FME	58 Neutral	€11.46B	11.74	5.41%	3.54%	2.10%	9.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SRT	48 Neutral	€14.92B	85.31	5.01%	0.39%	5.82%	59.90%