Siemens Healthineers AG (SHL) AI Stock Analysis

• Market Cap: $50.81B
• Dividend Yield: 2.09%
• Average Volume (3M): 932.01K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.10
• Revenue Growth: 5.83%
• EPS Growth: 13.44%
• Country: DE
• Employees: 72,000
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Devices
• EPS (TTM): 0.56
• Shares Outstanding: 1,128,000,000
• 10 Day Avg. Volume: 751,289
• 30 Day Avg. Volume: 932,013
• PEG Ratio: 1.53
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 30.10
• 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: $60.21
• Price Target Upside: 31.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 77 Outperform
• Price Target: €55.00 ▲(19.83%Upside)

Siemens Healthineers AG's stock score is bolstered by strong financial performance and a positive earnings call. However, technical indicators suggest neutral to cautious conditions, and valuation metrics indicate potential overvaluation. Tariff challenges and specific segment pressures add caution to the outlook.

Positive Factors

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.

Revenue Growth

Revenue grew 6.8% y/y to EUR5.9bn, beating full-year guidance of 5% to 6%.

Negative Factors

Diagnostics Performance

Diagnostics revenue growth was modest and the adjusted EBIT was materially below expectations.

Trade Barriers

The adjusted EPS forecast range was widened to factor in anticipated impacts from tariffs and trade barriers which may affect operations in key markets.

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 AG generates revenue through the sale of its comprehensive portfolio of medical technology products and services. The primary revenue streams include sales of medical imaging equipment such as MRI and CT scanners, laboratory diagnostics products, and point-of-care testing devices. Additionally, the company offers services such as equipment maintenance, training, and consulting, which provide recurring revenue. Siemens Healthineers also leverages digital health solutions, including AI-powered applications and data analytics services, to enhance healthcare delivery and operational efficiency, further contributing to its revenue. Strategic partnerships and collaborations with healthcare providers, research institutions, and technology firms play a crucial role in expanding its market reach and driving sales growth.

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.

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.

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.

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
	EBIT
3.18B	2.81B	2.22B	2.92B	2.48B	2.00B
	EBITDA
4.48B	4.22B	3.78B	4.26B	3.52B	2.84B
	Net Income Common Stockholders
2.09B	1.94B	1.51B	2.04B	1.73B	1.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.85B	2.77B	1.77B	1.44B	1.40B	687.00M
	Total Assets
46.91B	46.05B	46.68B	49.06B	42.16B	25.09B
	Total Debt
808.00M	16.23B	633.00M	694.00M	753.00M	481.00M
	Net Debt
-1.60B	13.55B	-1.01B	-742.00M	-569.00M	-175.00M
	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

• Technical Analysis Sentiment: Negative
• Last Price: 45.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 45.9 is below the 20-day moving average (MA) of 46.45, below the 50-day MA of 46.58, and below the 200-day MA of 50.10, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 42.85 is Neutral, neither overbought nor oversold. The STOCH value of 29.77 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHL	77 Outperform	$50.81B	24.41	11.14%	2.09%	5.83%	13.44%
Sector *	54 Neutral	$5.24B	3.26	-44.35%	6.48%	16.78%	-0.10%
0DHC		€5.29B	33.31	7.48%	1.02%	―	―
0H9X		€13.68B	22.13	4.37%	3.09%	―	―
0OO9		€23.44B	56.11	6.28%	2.38%	―	―
0O14		€47.70B	16.93	9.74%	2.01%	―	―
0NIQ		€13.11B	122.03	3.55%	0.43%	―	―