Siemens (SIE) AI Stock Analysis

• Market Cap: €185.54B
• Dividend Yield: 2.2%
• Average Volume (3M): 877.61K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.63
• Revenue Growth: 0.55%
• EPS Growth: 22.60%
• Country: DE
• Employees: 313,000
• Sector: Industrials
• Sector Strength: 77
• Industry: Industrial - Machinery
• EPS (TTM): 2.55
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 688,237
• 30 Day Avg. Volume: 877,610
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €230.80
• Price Target Upside: -2.57% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: €268.00 ▲(13.13% Upside)

Siemens' strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's stable financial position and bullish market momentum position it well for future growth. Valuation metrics suggest the stock is fairly valued, with a moderate dividend yield adding to its attractiveness.

Positive Factors

Acquisition

The acquisition of Dotmatics will expand Siemens' total addressable software market by approximately $11 billion.

Financial Performance

Higher profits from Siemens Financial Services (SFS) and Smart Infrastructure (SI) are expected to significantly contribute to a higher income before tax estimate.

Growth and Profitability

Dotmatics will be accretive to growth, profitability, and cash generation relative to Siemens' existing software portfolio.

Negative Factors

Earnings Expectations

MOB's performance is expected to align with prior indications but remains below consensus with EBITA forecasted at 5% less than expected.

Order Concerns

Smart Infrastructure (SI) orders are anticipated to be below consensus, which might raise concerns, especially with recent data center industry news.

Siemens Business Overview & Revenue Model

Company Description

Siemens AG is a global technology company headquartered in Germany, operating in various sectors including digital industries, smart infrastructure, mobility, Siemens Financial Services, and Siemens Healthineers. The company focuses on areas such as automation, digitalization, and electrification, providing a wide range of products and services from industrial automation systems and building technologies to mobility solutions for rail and road transport, as well as healthcare technologies. Siemens is committed to innovation and sustainability, aiming to create efficient solutions for industries and communities worldwide.

How the Company Makes Money

Siemens generates revenue through multiple key streams, primarily driven by its diverse business segments. The digital industries segment offers automation equipment and software, serving manufacturing and process industries, which is a significant source of income. The smart infrastructure segment focuses on intelligent building technologies and energy management, contributing to revenue through both product sales and service contracts. The mobility segment, which includes rail automation and smart transportation solutions, also plays a crucial role in the company's earnings. Siemens Healthineers provides medical technologies and healthcare services, adding to the revenue through equipment sales and ongoing service agreements. Additionally, Siemens Financial Services supports the company by financing projects and investments, enhancing its overall profitability. Strategic partnerships and alliances with other technology firms and industry stakeholders further bolster Siemens’ market position, facilitating access to new markets and innovative solutions, which in turn contribute to its financial success.

Siemens Financial Statement Overview

Summary

Siemens demonstrates strong financial health with robust revenue growth, profitability, and efficient cash flow management. The balance sheet is stable with a balanced debt-to-equity ratio, though there is room for optimizing leverage.

Income Statement

Siemens has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 6.13% and consistent profitability. The gross profit margin remains robust at 39.11%, and the net profit margin has improved to 12.64%, indicating efficient cost management and strong bottom-line performance. The EBIT and EBITDA margins are healthy at 16.57% and 20.52%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.999, indicating balanced leverage. Return on equity is strong at 18.04%, highlighting effective use of shareholder funds. The equity ratio stands at 37.29%, suggesting a solid equity base relative to total assets, though there is room for improvement in reducing leverage.

Cash Flow

Cash flow analysis shows positive trends with a free cash flow growth rate of 7.99% in the TTM period. The operating cash flow to net income ratio is 1.29, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.81, reflecting efficient conversion of earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.30B	75.93B	74.88B	71.98B	62.27B	55.25B
Gross Profit	30.22B	29.82B	29.12B	25.85B	22.74B	19.89B
EBITDA	15.90B	15.34B	15.11B	13.48B	11.64B	9.92B
Net Income	9.90B	8.30B	7.95B	3.72B	5.26B	4.04B
Balance Sheet
Total Assets	162.46B	147.81B	145.07B	151.50B	139.61B	123.90B
Cash, Cash Equivalents and Short-Term Investments	26.01B	10.22B	11.13B	11.70B	10.68B	15.30B
Total Debt	56.69B	47.92B	46.60B	50.64B	48.70B	44.57B
Total Liabilities	96.42B	91.58B	92.01B	96.70B	90.33B	84.07B
Stockholders Equity	60.59B	51.26B	47.79B	48.90B	44.37B	36.39B
Cash Flow
Free Cash Flow	10.53B	9.58B	10.09B	8.16B	8.27B	6.53B
Operating Cash Flow	12.82B	11.66B	12.24B	10.24B	10.00B	8.03B
Investing Cash Flow	-6.77B	-3.28B	-3.18B	-2.49B	-15.49B	-5.18B
Financing Cash Flow	1.19B	-8.88B	-8.73B	-7.50B	785.00M	4.00B

Siemens Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 236.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SIE, the sentiment is Positive. The current price of 236.9 is above the 20-day moving average (MA) of 228.32, above the 50-day MA of 222.66, and above the 200-day MA of 208.20, indicating a bullish trend. The MACD of 3.78 indicates Negative momentum. The RSI at 60.82 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SIE.

Siemens Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIE	75 Outperform	€185.54B	18.80	14.27%	2.20%	0.55%	22.60%
Sector *	64 Neutral	$10.92B	16.41	8.85%	2.02%	2.59%	-16.33%
0J9C	―	€1.58B	14.47	-6.59%	―	―	―
0MPJ	―	€10.46B	26.82	17.92%	―	―	―
0EXP	―	€3.23B	11.27	11.92%	―	―	―
0LQ4	―	€4.18B	14.51	15.37%	―	―	―
SMEGF	―	$86.04B	86.11	9.35%	―	―	―