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Siemens Healthineers AG (DE:SHL)
XETRA:SHL
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Siemens Healthineers AG
(XETRA:SHL)
Rating:71Outperform
Price Target:
€51.00
▲(10.68%Upside)
Positive Factors
Cash Flow
Free cash flow was EUR197 million, up 64% year-over-year, significantly higher than the previous year, supporting continued investment in innovation and shareholder returns.
Financial Performance
Revenue grew 6.8% year-over-year to EUR5.9 billion, beating full-year guidance of 5% to 6%.
Innovation
Siemens Healthineers is at the forefront of innovation and was the first company to obtain FDA approval for the first photon-counting CT for clinical use and continues to be the only company with such technology commercially available.
Negative Factors
Advanced Therapies Margin
Advanced therapies segment showed a margin below expectations, attributed to an unfavorable business mix.
Diagnostics Performance
Diagnostics showed a slight miss at the top line, with continued declines in China related to volume-based procurement.
Tariffs and Trade Barriers
The adjusted EPS forecast range was widened from EUR2.35 to EUR2.50 originally to EUR2.20 to EUR2.50 to factor in anticipated impacts from tariffs and trade barriers which may affect operations in key markets.
Siemens Healthineers AG (SHL) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$53.39B
Dividend Yield1.98%
Average Volume (3M)995.03K
Price to Earnings (P/E)25.6
Beta (1Y)1.08
Revenue Growth5.83%
EPS Growth13.44%
CountryDE
Employees72,000
SectorHealthcare
Sector Strength39
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.56
Shares Outstanding1,128,000,000
10 Day Avg. Volume825,207
30 Day Avg. Volume995,030
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)2.51
Price to Sales (P/S)0.00
P/FCF Ratio30.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$60.02Price Target Upside30.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Siemens Healthineers AG Business Overview & Revenue Model
Company DescriptionSiemens 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 MoneySiemens Healthineers AG generates revenue through the sale of its medical technology products and services across various healthcare sectors. A significant portion of its income comes from the sale of advanced imaging systems, such as MRI and CT scanners, and laboratory diagnostics equipment. The company also earns from offering digital health solutions and enterprise services that assist healthcare providers in managing operations more efficiently. Service contracts and maintenance agreements for installed equipment contribute to recurring revenue streams. Strategic partnerships and collaborations with healthcare providers, research institutions, and technology companies further enhance its market presence and revenue potential.
Siemens Healthineers AG Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q2-2025)
| % Change Since: -2.76%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong performance with significant growth in revenue, order intake, and segment advancements. However, challenges such as the tariff environment and specific segment pressures, particularly in Varian, were noted. While the company is taking measures to mitigate these challenges, the ongoing uncertainty in the global trade environment presents a cautious outlook.Q2-2025 Updates
Positive Updates
Strong Overall Growth
Siemens Healthineers reported a nearly 7% growth in Q2, surpassing the full-year guidance pace. Adjusted EPS growth was driven by topline growth and margin expansion.
Impressive Order Book
The company achieved a strong equipment book-to-bill ratio of 1.14, supported by significant deals such as the C$800 million oncology value partnership with Alberta, Canada.
Imaging Segment Success
Imaging, the largest segment, grew by close to 9% with a margin uplift to 22.4%.
Advanced Therapies and Diagnostics Growth
Advanced Therapies had a solid growth with an 18.5% margin. Diagnostics margin expanded by over 200 basis points to 6.3% year-on-year.
Strong Cash Performance
Free cash flow increased by 64% year-over-year, amounting to €1 billion for the first half of fiscal year 2025.
Negative Updates
Tariff Challenges
The company is facing a challenging tariff environment with new tariffs of 10% and 20% on European goods into the U.S. This has led to a cautious outlook and a lowered EPS guidance range.
Varian Margin Pressure
Varian's strong revenue was offset by a high equipment share in revenue, which temporarily compressed margins. The margin was also impacted by a 70 basis points foreign exchange headwind.
China Market Challenges
The Chinese market remains subdued due to the ongoing anti-corruption campaign, with stimulus funds not yet significantly impacting hospital activities.
Company Guidance
During Siemens Healthineers' Q2 2025 earnings call, the company reported a growth rate of nearly 7%, surpassing their full-year guidance pace, with adjusted EPS driven by topline growth and margin expansion. The company maintained its revenue outlook for fiscal year 2025 but adjusted the bottom end of the EPS outlook due to new tariffs and global trade uncertainties. The quarter saw a strong equipment book-to-bill ratio of 1.14, with Imaging growing close to 9% and achieving a margin of 22.4%. Free cash flow significantly increased, totaling €1 billion for the first half of the fiscal year. The company faced tariff impacts, including 10% to 20% tariffs on European goods into the U.S., which affected their EPS guidance. Despite these challenges, Siemens Healthineers emphasized their global production footprint as a means to mitigate tariff impacts and highlighted their largest value partnership in oncology care with Alberta, Canada, valued at C$800 million.Siemens Healthineers AG Financial Statement Overview
Summary
Siemens Healthineers AG exhibits strong financial health with robust revenue growth and solid profitability. The company has no long-term debt, showcasing excellent leverage management. Cash flow management is effective, indicating strong liquidity and operational support.Income Statement
Siemens Healthineers AG shows strong revenue growth with a positive Revenue Growth Rate of 4.5% in TTM. The Gross Profit Margin stands at 38.17%, indicating efficient production. The EBIT and EBITDA margins are strong at 10.08% and 18.73% respectively, demonstrating robust operational efficiency. The Net Profit Margin of 8.75% reflects solid profitability, although slightly lower than historical figures.85
Very Positive
Balance Sheet
The company's balance sheet is strong, with a Debt-to-Equity Ratio of 0.00 indicating no long-term debt, a very positive aspect for stability. Return on Equity (ROE) is strong at 10.03%, showcasing effective use of equity capital. Additionally, the Equity Ratio is at 40.93%, illustrating a healthy proportion of equity financing relative to total assets.88
Very Positive
Cash Flow
Cash flow metrics show a positive Free Cash Flow Growth Rate of 36.06%, reflecting improved liquidity management. The Operating Cash Flow to Net Income Ratio is 1.58, suggesting strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio stands at 1.21, indicating good cash conversion.78
Positive
| Breakdown | TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.14B | 22.36B | 21.68B | 21.71B | 18.00B | 14.46B |
| Gross Profit | 8.97B | 8.47B | 7.71B | 8.14B | 6.95B | 5.58B |
| EBITDA | 4.48B | 4.22B | 3.78B | 4.26B | 3.52B | 2.84B |
| Net Income | 2.09B | 1.94B | 1.51B | 2.04B | 1.73B | 1.41B |
Balance Sheet | ||||||
| Total Assets | 46.91B | 46.05B | 46.68B | 49.06B | 42.16B | 25.09B |
| Cash, Cash Equivalents and Short-Term Investments | 2.85B | 2.77B | 1.77B | 1.44B | 1.40B | 687.00M |
| Total Debt | 808.00M | 16.23B | 633.00M | 694.00M | 753.00M | 481.00M |
| Total Liabilities | 28.19B | 27.81B | 28.55B | 29.20B | 25.82B | 12.58B |
| Stockholders Equity | 18.67B | 18.20B | 18.08B | 19.84B | 16.32B | 12.50B |
Cash Flow | ||||||
| Free Cash Flow | 2.54B | 1.77B | 1.28B | 1.65B | 2.26B | 1.37B |
| Operating Cash Flow | 3.30B | 2.47B | 2.12B | 2.50B | 2.93B | 1.93B |
| Investing Cash Flow | -897.00M | -666.00M | -1.07B | -868.00M | -14.14B | -1.91B |
| Financing Cash Flow | -2.47B | -1.30B | -380.00M | -1.64B | 11.84B | -249.00M |
Siemens Healthineers AG Technical Analysis
Negative
46.08
Price Trends
47.09
Negative
48.43
Negative
49.93
Negative
Market Momentum
0.04
Negative
43.24
Neutral
66.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SHL, the sentiment is Negative. The current price of 46.08 is below the 20-day moving average (MA) of 46.68, below the 50-day MA of 47.09, and below the 200-day MA of 49.93, indicating a bearish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 66.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SHL.
Siemens Healthineers AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $53.39B | 25.65 | 11.14% | 1.98% | 5.83% | 13.44% | |
52 Neutral | $7.59B | 0.30 | -61.86% | 2.27% | 16.72% | 1.10% | |
| €4.74B | 29.93 | 7.48% | 1.13% | ― | ― | ||
| €13.77B | 22.28 | 4.37% | 3.07% | ― | ― | ||
| €23.54B | 56.36 | 6.28% | 2.04% | ― | ― | ||
| €49.76B | 17.66 | 9.74% | 1.92% | ― | ― | ||
| €14.10B | 130.85 | 3.55% | 0.40% | ― | ― |
* Healthcare Sector Average
Performance Comparison
DE:SHL
Siemens Healthineers AG
46.08
-7.63
-14.21%
GB:0DHC
Carl Zeiss Meditec
52.30
-12.16
-18.86%
GB:0H9X
Fresenius Medical Care AG & Co. KGaA
46.26
10.76
30.31%
GB:0OO9
Fresenius SE & Co. KGaA
41.94
12.92
44.52%
GB:0O14
Merck KGaA
112.80
-37.36
-24.88%
GB:0NIQ
Sartorius
178.80
-11.80
-6.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.