Siemens Healthineers AG (SHL) AI Stock Analysis

• Market Cap: $53.91B
• Dividend Yield: 1.96%
• Average Volume (3M): 796.06K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 1.04
• Revenue Growth: 5.85%
• EPS Growth: 16.20%
• Country: DE
• Employees: 72,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.64
• Shares Outstanding: 1,128,000,000
• 10 Day Avg. Volume: 1,084,904
• 30 Day Avg. Volume: 796,062
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 2.84
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: 14.18
• 1Y Price Target: $60.23
• Price Target Upside: 24.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: €54.00 ▲(11.27% Upside)

Siemens Healthineers AG's strong financial performance and positive earnings call are the most significant factors contributing to the score. While technical analysis shows mixed signals, the company's strategic focus and raised outlook provide a positive long-term view. Valuation is reasonable, supporting the overall investment case.

Positive Factors

Negative Factors

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 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 Financial Statement Overview

Summary

Siemens Healthineers AG shows strong financial performance with consistent revenue and profit growth, efficient operational management, and a stable financial position. The company has a solid balance sheet and robust cash flow generation, although the increase in debt levels requires attention.

Income Statement

Siemens Healthineers AG demonstrates strong revenue growth with a TTM increase of 3.3% and consistent profitability, evidenced by a solid gross profit margin of 38.76% and a net profit margin of 9.29%. The EBIT and EBITDA margins are healthy at 14.48% and 20.02%, respectively, indicating efficient operational management. The company shows a positive trajectory in revenue and profit growth, enhancing its competitive position in the medical devices industry.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.89, indicating prudent leverage. The return on equity is robust at 11.69%, showcasing effective use of shareholder funds. The equity ratio stands at 39.64%, suggesting a solid capital structure. However, the increase in total debt over the years warrants monitoring to ensure continued financial stability.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 11.10% TTM, supporting the company's ability to fund operations and investments. The operating cash flow to net income ratio of 1.56 and free cash flow to net income ratio of 0.77 indicate efficient cash generation relative to earnings. The company maintains a healthy cash flow position, crucial for sustaining growth and operational flexibility.

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	41.93B	25.09B
Cash, Cash Equivalents and Short-Term Investments	2.37B	2.68B	1.64B	1.44B	1.32B	656.00M
Total Debt	15.70B	16.21B	16.65B	16.65B	14.31B	5.50B
Total Liabilities	26.88B	27.81B	28.55B	29.20B	25.87B	12.58B
Stockholders Equity	17.68B	18.20B	18.08B	19.84B	16.04B	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

• Technical Analysis Sentiment: Positive
• Last Price: 48.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SHL, the sentiment is Positive. The current price of 48.53 is above the 20-day moving average (MA) of 47.04, above the 50-day MA of 47.04, and below the 200-day MA of 48.82, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.64 is Neutral, neither overbought nor oversold. The STOCH value of 99.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SHL.

Siemens Healthineers AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	77 Outperform	$53.91B	24.95	11.75%	1.96%	5.85%	16.20%
FME	70 Outperform	€13.28B	20.37	4.83%	3.11%	0.53%	23.79%
SRT	70 Neutral	€14.18B	122.30	3.88%	0.40%	3.80%	33.31%
FRE	69 Neutral	€25.98B	23.61	7.30%	2.16%	-0.59%	―
AFX	67 Neutral	€4.08B	25.76	7.48%	1.33%	5.21%	-39.36%
MRK	65 Neutral	€52.26B	18.35	10.08%	1.84%	1.67%	9.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%