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Siemens Healthineers AG (DE:SHL)
XETRA:SHL
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Siemens Healthineers AG
(XETRA:SHL)
Rating:79Outperform
Price Target:
€54.00
▲(14.43% Upside)
Positive Factors
Cash Flow and Investment
Free cash flow was EUR197mn, up 64% y/y, significantly higher than the previous year, supporting continued investment in innovation and shareholder returns.
Innovation and Technology
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.
Revenue Growth
Revenue grew 6.8% y/y to EUR5.9bn, beating full-year guidance of 5% to 6%.
Negative Factors
Diagnostics Segment Performance
Diagnostics revenue growth was modest and the adjusted EBIT was materially below expectations.
First Mover Advantage
First mover advantage may not last long.
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
$52.71B
Dividend Yield2.01%
Average Volume (3M)748.86K
Price to Earnings (P/E)24.6
Beta (1Y)1.00
Revenue Growth5.85%
EPS Growth16.20%
CountryDE
Employees72,000
SectorHealthcare
Sector Strength47
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.64
Shares Outstanding1,128,000,000
10 Day Avg. Volume505,140
30 Day Avg. Volume748,861
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue2.84
Enterprise Value/Gross Profit7.32
Enterprise Value/Ebitda14.18
Forecast
1Y Price Target
$60.54Price Target Upside28.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Siemens Healthineers AG Business Overview & Revenue Model
Company DescriptionSiemens Healthineers AG (SHL) is a global healthcare technology company that focuses on providing innovative solutions for the medical field. As a subsidiary of Siemens AG, SHL operates in various sectors including diagnostic imaging, laboratory diagnostics, and digital health services. The company’s core products include advanced imaging systems such as MRI and CT scanners, ultrasound equipment, and laboratory diagnostics instruments, alongside software solutions that enhance healthcare delivery and patient management.
How the Company Makes MoneySiemens Healthineers generates revenue through multiple streams, primarily from the sale of medical devices and equipment, which includes imaging systems, laboratory diagnostics, and point-of-care testing solutions. The company also earns significant income from service agreements, which encompass installation, maintenance, and upgrades of their medical devices. Additionally, SHL benefits from software and digital health services that improve operational efficiency and patient outcomes for healthcare providers. Key partnerships with hospitals, research institutions, and other healthcare organizations further contribute to their earnings, enhancing their market presence and enabling access to large-scale contracts. The growing demand for innovative healthcare solutions, particularly in emerging markets, also plays a vital role in driving revenue growth for Siemens Healthineers.
Siemens Healthineers AG Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with significant revenue growth, margin expansion, and strategic advancements, despite challenges such as tariff headwinds and underperformance in China and Diagnostics.Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Siemens Healthineers reported a Q3 revenue growth of 7.6% with all regions showing growth, outpacing their full-year growth target. Imaging revenue grew by nearly 12% and Varian saw a 9% growth. Adjusted EPS grew by 23% to EUR 0.64 per share.
Impressive Margins and Financial Performance
Despite a EUR 100 million tariff headwind, Siemens Healthineers achieved margin expansion with Imaging margins at 21% and Varian margins at 18.8%. The company also reported a strong free cash flow, reducing leverage below 3x for the first time since the Varian acquisition.
Innovation and Strategic Partnerships
The Atellica franchise in Diagnostics is growing double digits and accounts for 60% of core lab revenues. Siemens Healthineers' Value Partnerships have grown significantly, reshaping revenue streams into recurring revenue. The company has entered into over 200 Value Partnerships.
Photon Counting CT Success
Photon Counting CT has been a significant growth driver within the CT segment, contributing to high-end CT market share gains globally.
Negative Updates
Tariff Headwinds
The quarter faced a EUR 100 million headwind from tariffs, expected to increase to EUR 200-250 million in Q4. For fiscal year 2026, the tariff impact is projected to be EUR 400-500 million.
Challenges in China
Revenue in China continued to be flat at around EUR 620 million with no sustained market recovery evidence. The 6% growth is attributed to lower comps from the previous year.
Diagnostics Underperformance
Diagnostics saw a slightly negative growth due to volume-based procurement impacts in China, expected to persist into the next fiscal year. Margins in Diagnostics were helped by a positive one-off from pension liabilities.
Company Guidance
In the Siemens Healthineers Q3 2025 earnings call, the company reported robust performance with a 7.6% growth in revenue across all regions, surpassing their annual growth target. Adjusted earnings per share (EPS) increased by 23% to EUR 0.64 per share, despite a EUR 100 million headwind from tariffs. The equipment book-to-bill ratio remained strong at 1.09. Imaging saw a 12% revenue growth, with a margin of 21%, while Varian and Advanced Therapies achieved 9% and 4.5% revenue growth respectively. Diagnostics margins improved to 9.2%, but revenue slightly declined. Free cash flow was strong, reducing the leverage factor below 3x. The company raised its fiscal year 2025 outlook, anticipating 5.5% to 6% revenue growth and adjusted EPS of EUR 2.30 to EUR 2.45, accounting for tariff impacts. The call also highlighted Siemens Healthineers' strategic focus on patient twinning, precision therapy, and digital, data, and AI capabilities, emphasizing their role in enhancing patient outcomes and healthcare system efficiencies.Siemens Healthineers AG Financial Statement Overview
Summary
Siemens Healthineers AG demonstrates strong financial health with robust revenue growth, solid profitability, and excellent leverage management with no long-term debt. Cash flow management is effective, supporting the company's operations and potential future investments.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.38B | 22.36B | 21.68B | 21.71B | 18.00B | 14.46B |
| Gross Profit | 9.06B | 8.47B | 7.71B | 8.14B | 6.95B | 5.58B |
| EBITDA | 4.68B | 4.22B | 3.78B | 4.26B | 3.52B | 2.84B |
| Net Income | 2.17B | 1.94B | 1.51B | 2.04B | 1.73B | 1.41B |
Balance Sheet | ||||||
| Total Assets | 44.60B | 46.05B | 46.68B | 49.06B | 42.16B | 25.09B |
| Cash, Cash Equivalents and Short-Term Investments | 2.77B | 2.77B | 1.77B | 1.44B | 1.40B | 687.00M |
| Total Debt | 0.00 | 16.23B | 633.00M | 694.00M | 753.00M | 481.00M |
| Total Liabilities | 26.88B | 27.81B | 28.55B | 29.20B | 25.82B | 12.58B |
| Stockholders Equity | 17.68B | 18.20B | 18.08B | 19.84B | 16.32B | 12.50B |
Cash Flow | ||||||
| Free Cash Flow | 2.62B | 1.77B | 971.00M | 1.40B | 2.11B | 1.25B |
| Operating Cash Flow | 3.39B | 2.47B | 1.81B | 2.26B | 2.78B | 1.80B |
| Investing Cash Flow | -965.00M | -666.00M | -1.07B | -868.00M | -14.14B | -1.91B |
| Financing Cash Flow | -1.99B | -1.30B | -380.00M | -1.40B | 11.99B | -126.00M |
Siemens Healthineers AG Technical Analysis
Neutral
47.19
Price Trends
46.85
Positive
46.68
Positive
49.35
Negative
Market Momentum
0.23
Negative
51.48
Neutral
65.99
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 47.19 is above the 20-day moving average (MA) of 46.98, above the 50-day MA of 46.85, and below the 200-day MA of 49.35, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 65.99 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $52.71B | 24.55 | 11.75% | 2.01% | 5.85% | 16.20% | |
51 Neutral | $7.83B | -0.18 | -40.10% | 2.29% | 21.46% | -2.03% | |
| ― | €3.89B | 24.35 | 7.48% | ― | ― | ― | |
| ― | €12.81B | 19.50 | 4.83% | ― | ― | ― | |
| ― | €26.22B | 23.76 | 7.30% | ― | ― | ― | |
| ― | €46.87B | 16.70 | 10.08% | ― | ― | ― | |
| ― | €12.34B | 106.25 | 3.88% | 0.45% | ― | ― |
* Healthcare Sector Average
Performance Comparison
DE:SHL
Siemens Healthineers AG
47.19
-4.08
-7.96%
GB:0DHC
Carl Zeiss Meditec
43.02
-22.25
-34.09%
GB:0H9X
Fresenius Medical Care AG & Co. KGaA
43.26
9.06
26.49%
GB:0OO9
Fresenius SE & Co. KGaA
46.60
14.05
43.16%
GB:0O14
Merck KGaA
108.10
-62.63
-36.68%
GB:0NIQ
Sartorius
161.00
-30.60
-15.97%
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.