Siemens (SIE) AI Stock Analysis

• Market Cap: €191.01B
• Dividend Yield: 2.18%
• Average Volume (3M): 917.46K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.52
• Revenue Growth: 2.11%
• EPS Growth: 16.48%
• Country: DE
• Employees: 313,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.58
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 822,926
• 30 Day Avg. Volume: 917,464
• PEG Ratio: 1.15
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 19.82
• 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: €271.77
• Price Target Upside: 10.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: €276.00 ▲(12.58% Upside)
• Action: Reiterated Date: 02/17/26
• Date: Action: Reiterated 02/17/26

Overall score is driven primarily by solid underlying financial performance (strong profitability and returns, with manageable but meaningful leverage), supported by a technically positive trend with healthy—not stretched—momentum. The main constraint on the score is valuation (P/E ~24.7) alongside recent softness in free cash flow growth.

Positive Factors

Diversified business model

Siemens' multi-segment footprint spreads revenue across industrial automation, energy, healthcare and mobility, reducing single-cycle exposure. Durable service contracts, long project timelines and digital services create recurring revenue, stabilizing cash flows across economic cycles.

Strong margins and revenue scale

Sustained gross and net margins at scale indicate structural operating strength and pricing power across engineered products and services. Multi-year revenue expansion supports investment in R&D and service networks, underpinning long-term profitability and competitive positioning.

Strategic AI and digital-twin partnerships

Material strategic tie-ups with NVIDIA (and related PepsiCo pilots) embed Siemens into industrial AI and digital-twin ecosystems. This strengthens software and services revenue potential, accelerates product differentiation, and creates sticky long-term customer relationships across manufacturing and supply chains.

Negative Factors

High absolute debt load

A large absolute debt stock limits financial flexibility in downturns and raises refinancing risk if cycles weaken. Even with improved leverage metrics, servicing and rolling this scale of debt constrains capital allocation for M&A, dividends or accelerated buybacks under stress.

Weaker cash conversion recently

Positive absolute cash generation masks a deterioration in free cash flow growth. Modest operating cash relative to debt reduces deleveraging capacity and limits internal funding for strategic investments, making the company more reliant on external financing in adverse conditions.

Earnings volatility and uneven growth

Reported EPS decline and noted earnings variability indicate inconsistent margin or cycle exposure across segments. Persistent volatility complicates planning, reduces predictability of returns and may hamper investor confidence in sustaining long-term cash returns or funding growth initiatives.

Siemens Business Overview & Revenue Model

Company Description

Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. It operates through Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services segments. The Digital Industries segment offers automation systems and software for factories, numerical control systems, motors, drives and inverters, and integrated automation systems for machine tools and production machines; process control systems, machine-to-machine communication products, sensors and radio frequency identification systems; software for production and product lifecycle management, and simulation and testing of mechatronic systems; and cloud-based industrial Internet of Things operating systems. The Smart Infrastructure segment offers products, systems, solutions, services, and software to support sustainable transition in energy generation from fossil and renewable sources; sustainable buildings and communities; and buildings, electrification, and electrical products. The Mobility segment provides passenger and freight transportation, such as vehicles, trams and light rail, and commuter trains, as well as trains and passenger coaches; locomotives for freight or passenger transport and solutions for automated transportation; products and solutions for rail automation; electrification products; and intermodal solutions. The Siemens Healthineers segment develops, manufactures, and sells various diagnostic and therapeutic products and services; and provides clinical consulting services. The Siemens Financial Services segment offers debt and equity investments; leasing, lending, and working capital financing solutions; and equipment, project, and structured financing solutions. Siemens Aktiengesellschaft was founded in 1847 and is headquartered in Munich, Germany.

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

Income statement strength (78) reflects solid margins and steady multi-year revenue expansion, though with some earnings variability. The balance sheet (70) is stable with improving leverage but a meaningful absolute debt load. Cash flow is the main offset (62) due to negative recent FCF growth and only modest operating cash flow coverage versus debt.

Income Statement

Siemens shows solid profitability with a healthy TTM (Trailing-Twelve-Months) gross margin (~38.5%) and net margin (~12.2%), and operating profitability remaining strong. Revenue has grown steadily over the last several annual periods (from ~€62B in 2021 to ~€79B TTM), but the TTM revenue growth figure appears unusually high versus the annual trend, suggesting growth may be less consistent than the single TTM data point implies. Net income is positive and generally improving versus earlier years (notably above 2022), though it is down versus the most recent annual net income level, indicating some earnings volatility.

Balance Sheet

The balance sheet is generally stable with equity expanding over time (from ~€44B in 2021 to ~€65B TTM) and returns on equity in the mid-teens (TTM ~16%), consistent with a well-performing industrial business. Leverage is meaningful but not extreme: debt is ~€56B TTM with debt-to-equity around ~0.90, an improvement versus earlier periods when leverage was closer to or above 1.0. The main watch item is the absolute debt load alongside a large asset base, which can reduce flexibility if the cycle weakens.

Cash Flow

Cash generation is positive with TTM operating cash flow of ~€11.4B and free cash flow of ~€9.0B, and free cash flow covering a large portion of net income (TTM ~81%), which supports earnings quality. However, free cash flow growth is negative in the latest periods (TTM and annual), pointing to near-term pressure on cash conversion. In addition, operating cash flow is relatively modest versus the debt balance (coverage ~0.27 TTM), which is acceptable but not especially strong for deleveraging capacity.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	79.70B	78.91B	75.93B	74.88B	71.98B	62.27B
Gross Profit	30.94B	30.40B	29.82B	29.12B	25.85B	22.74B
EBITDA	15.31B	15.86B	15.34B	15.11B	13.48B	11.64B
Net Income	7.95B	9.62B	8.30B	7.95B	3.72B	5.26B
Balance Sheet
Total Assets	170.13B	166.20B	147.81B	145.07B	151.50B	139.61B
Cash, Cash Equivalents and Short-Term Investments	15.26B	15.52B	10.22B	11.13B	11.70B	10.68B
Total Debt	56.47B	56.01B	47.92B	46.60B	50.64B	48.70B
Total Liabilities	98.11B	97.83B	91.58B	92.01B	96.70B	90.33B
Stockholders Equity	65.48B	62.24B	51.26B	47.79B	48.90B	44.37B
Cash Flow
Free Cash Flow	8.96B	9.08B	9.58B	10.09B	8.16B	8.27B
Operating Cash Flow	11.40B	11.52B	11.66B	12.24B	10.24B	10.00B
Investing Cash Flow	-14.38B	-11.31B	-3.28B	-3.18B	-2.49B	-15.49B
Financing Cash Flow	5.00B	5.37B	-8.88B	-8.73B	-7.50B	785.00M

Siemens Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 245.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 245.15 is below the 20-day moving average (MA) of 246.73, above the 50-day MA of 243.36, and above the 200-day MA of 228.28, indicating a neutral trend. The MACD of -0.66 indicates Positive momentum. The RSI at 49.85 is Neutral, neither overbought nor oversold. The STOCH value of 26.87 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
KRN	75 Outperform	€4.45B	14.90	14.99%	1.95%	8.15%	16.17%
ENR	74 Outperform	€141.97B	73.31	18.39%	―	13.38%	22.22%
JUN3	73 Outperform	€3.74B	13.11	11.92%	2.29%	-1.50%	2.01%
SIE	70 Outperform	€191.01B	24.13	13.32%	2.18%	2.11%	16.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
G1A	61 Neutral	€10.54B	26.28	17.71%	2.01%	2.26%	6.49%
DUE	54 Neutral	€1.74B	-53.47	-7.86%	3.12%	-18.21%	-137.62%