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Siemens Healthineers (DE:SHL)
:SHL
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Siemens Healthineers AG (SHL) AI Stock Analysis

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DE:SHL

Siemens Healthineers AG

(OTC:SHL)

Rating:72Outperform
Price Target:
€52.00
▲(12.00%Upside)
Siemens Healthineers AG shows strong financial performance and robust earnings call results, with excellent revenue growth and profitability, despite some market challenges. The technical analysis suggests a bearish trend, while the valuation indicates a premium pricing. The company's ability to manage tariff impacts and foreign exchange headwinds will be crucial to sustaining its financial health.
Positive Factors
Earnings
Revenue grew 6.8% y/y to EUR5.9bn, 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.
Negative Factors
Diagnostics Segment Performance
Diagnostics revenue growth was modest and the adjusted EBIT was materially below expectations.
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)

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:Jul 30, 2025
(Q3-2025)
|
% Change Since: -4.33%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a generally strong performance for Siemens Healthineers, with notable growth in key segments and successful initiatives like Value Partnerships and Diagnostics transformation. However, significant tariff and foreign exchange headwinds, along with challenges in the Chinese market, present concerns for future quarters.
Q3-2025 Updates
Positive Updates
Strong Revenue and EPS Growth
In Q3 2025, Siemens Healthineers achieved a revenue growth of 7.6% and a significant EPS increase of 23% to EUR 0.64 per share, despite a EUR 100 million tariff impact.
Impressive Imaging and Varian Segment Performance
Imaging segment saw revenue growth of almost 12% with a strong margin of 21%, while Varian reported 9% comparable revenue growth with a margin recovery to 18.8%.
Expansion of Value Partnerships
Value Partnerships revenue has grown threefold since the IPO, contributing to over 5% of total revenue, with significant deals signed in the U.S., Germany, and France exceeding EUR 100 million.
Diagnostics Margin Improvement
Despite slightly negative growth, Diagnostics achieved a margin of 9.2%, with the Atellica franchise growing double digits, accounting for 60% of core lab revenues.
Free Cash Flow and Deleveraging
Free cash flow increased by 50% year-over-year, reducing the leverage factor below 3x for the first time since the Varian acquisition.
Negative Updates
Tariff Headwinds
Tariffs had a EUR 100 million impact in Q3 and are expected to have a EUR 200-250 million impact on pretax profit for FY 2025, with a potential EUR 400-500 million impact in FY 2026.
China Market Challenges
Revenue in China showed 6% growth due to lower prior-year comps, with no indication of a sustained market recovery, and book-to-bill around 1, reflecting continued challenges.
Foreign Exchange Headwinds
The depreciation of the U.S. dollar presented significant translational year-over-year headwinds on revenue, with expected continued impact into FY 2026.
Diagnostics Volume-Based Procurement Impact
The VBP in China led to slightly declining revenue in Diagnostics, with a significant negative impact on margins.
Company Guidance
During Siemens Healthineers' Q3 2025 earnings call, CEO Bernd Montag highlighted the company's strong performance with a revenue growth of 7.6% and an adjusted EPS increase of 23% to EUR 0.64 per share. Despite a EUR 100 million headwind from tariffs, the company achieved significant margin expansion. Equipment book-to-bill was strong at 1.09, with notable growth in imaging revenue of almost 12% and a strong margin of 21%. Varian saw 9% comparable revenue growth with a margin recovery to 18.8%, while Advanced Therapies achieved a 10.5% margin. The Diagnostics segment's transformation continues, with margins improving to 9.2% despite slightly negative growth. Free cash flow was robust, reducing the leverage factor below 3x for the first time since the Varian acquisition. Given these results, Siemens Healthineers has raised its fiscal year 2025 outlook, increasing the midpoints for comparable revenue growth and adjusted EPS.

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
85
Very Positive
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.
Balance Sheet
88
Very Positive
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.
Cash Flow
78
Positive
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue23.14B22.36B21.68B21.71B18.00B14.46B
Gross Profit8.97B8.47B7.71B8.14B6.95B5.58B
EBITDA4.48B4.22B3.78B4.26B3.52B2.84B
Net Income2.09B1.94B1.51B2.04B1.73B1.41B
Balance Sheet
Total Assets46.91B46.05B46.68B49.06B42.16B25.09B
Cash, Cash Equivalents and Short-Term Investments2.85B2.77B1.77B1.44B1.40B687.00M
Total Debt808.00M16.23B633.00M694.00M753.00M481.00M
Total Liabilities28.19B27.81B28.55B29.20B25.82B12.58B
Stockholders Equity18.67B18.20B18.08B19.84B16.32B12.50B
Cash Flow
Free Cash Flow2.54B1.77B1.28B1.65B2.26B1.37B
Operating Cash Flow3.30B2.47B2.12B2.50B2.93B1.93B
Investing Cash Flow-897.00M-666.00M-1.07B-868.00M-14.14B-1.91B
Financing Cash Flow-2.47B-1.30B-380.00M-1.64B11.84B-249.00M

Siemens Healthineers AG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price46.43
Price Trends
50DMA
46.75
Negative
100DMA
47.41
Negative
200DMA
49.59
Negative
Market Momentum
MACD
0.26
Negative
RSI
45.97
Neutral
STOCH
50.76
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 46.43 is below the 20-day moving average (MA) of 46.97, below the 50-day MA of 46.75, and below the 200-day MA of 49.59, indicating a bearish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 50.76 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€51.81B23.9811.75%2.05%5.85%16.20%
60
Neutral
HK$16.77B6.05-6.36%3.69%11.62%-23.89%
€4.14B26.367.48%1.16%
€12.70B20.544.37%3.21%
€22.91B54.856.28%2.39%
€46.59B16.539.74%1.90%
€11.46B99.753.88%0.48%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:SHL
Siemens Healthineers AG
46.24
-2.36
-4.85%
GB:0DHC
Carl Zeiss Meditec
46.26
-14.78
-24.21%
GB:0H9X
Fresenius Medical Care AG & Co. KGaA
43.31
9.57
28.36%
GB:0OO9
Fresenius SE & Co. KGaA
41.49
11.16
36.80%
GB:0O14
Merck KGaA
108.20
-51.59
-32.29%
GB:0NIQ
Sartorius
150.60
-40.00
-20.99%
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.Date of analysis: Aug 02, 2025