Siemens (SIE) AI Stock Analysis

• Market Cap: €163.65B
• Dividend Yield: 2.48%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.59
• Revenue Growth: -1.13%
• EPS Growth: 8.98%
• Country: DE
• Employees: 313,000
• Sector: Industrials
• Sector Strength: 80
• Industry: Industrial - Machinery
• EPS (TTM): 2.06
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 1,280,438
• 30 Day Avg. Volume: 1,755,012
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €230.36
• Price Target Upside: 8.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

Siemens receives a strong overall stock score of 75, driven primarily by its robust financial performance, characterized by strong profitability, a solid balance sheet, and healthy cash flows. Moderate technical analysis signals suggest caution with potential short-term volatility. Valuation metrics indicate that the stock is fairly valued with an attractive dividend yield.

Positive Factors

Acquisition Benefits

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

Financial Performance

Siemens has achieved 10.5% CAGR over the past four years, ahead of Eaton Global and ABB Electrification.

Negative Factors

Demand Dynamics Uncertainty

Considerable uncertainty about near-term demand dynamics, thus inhibiting any further re-rating from the c13x 2026E EV/EBITA.

Investor Concerns

Investor concerns have been raised due to Siemens' lagging share price, and its margins are at the bottom of the peer group.

Siemens Business Overview & Revenue Model

Company Description

Siemens AG is a global technology company that operates in various sectors including digital industries, smart infrastructure, mobility, and healthcare. With headquarters in Munich, Germany, Siemens focuses on electrification, automation, and digitalization, providing innovative solutions and services across industries such as energy, transportation, manufacturing, and healthcare. The company's core products and services include industrial automation equipment, smart building solutions, mobility and transportation systems, and medical devices.

How the Company Makes Money

Siemens makes money through a diversified revenue model that encompasses multiple business segments. Key revenue streams include the sale of industrial automation and digitalization solutions through its Digital Industries division, which serves manufacturing and process industries with products like programmable logic controllers and factory automation systems. The Smart Infrastructure division generates revenue by providing services and products for sustainable energy, building technology, and grid solutions. Siemens' Mobility segment contributes to earnings by delivering rail systems, services, and digital solutions for transportation infrastructure. Additionally, Siemens Healthineers, a separately managed healthcare business, drives revenue through the sale of medical imaging and laboratory diagnostics equipment. The company also benefits from strategic partnerships and collaborations that enhance its product offerings and market reach.

Siemens Financial Statement Overview

Summary

Siemens shows strong financial health with robust profitability and growth. The income statement reflects efficient cost management and solid operational efficiency. The balance sheet is strong with no leverage risk, and cash flows are healthy, supporting continued growth and shareholder returns.

Income Statement

Siemens demonstrates strong profitability with a consistent rise in net income and revenue over the years. The TTM gross profit margin stands at 38.89%, with a net profit margin of 12.45%, indicating efficient cost management. Revenue growth is robust, with a 7.25% increase from 2022 to 2023. EBIT and EBITDA margins are solid at 9.63% and 19.69%, respectively, suggesting strong operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 37.64% for the TTM period. The debt-to-equity ratio is 0.00, indicating no long-term debt, which enhances financial stability. The return on equity is impressive at 16.19%, reflecting effective management of equity capital. Overall, the balance sheet reflects a robust financial structure, though the absence of debt may limit leverage opportunities.

Cash Flow

Siemens reports a healthy cash flow position, with a TTM operating cash flow to net income ratio of 1.19, showing strong cash generation relative to profits. Free cash flow has grown steadily, with a TTM free cash flow of €9.25 billion. The free cash flow to net income ratio is 0.96, indicating efficient conversion of income into free cash flow, supporting investment and shareholder returns.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
75.93B	77.77B	71.98B	62.27B	55.25B
	Gross Profit
29.82B	29.65B	25.85B	22.74B	19.89B
	EBIT
9.56B	9.36B	7.34B	6.42B	4.39B
	EBITDA
15.34B	15.27B	13.48B	11.64B	6.58B
	Net Income Common Stockholders
8.30B	7.95B	3.72B	6.16B	4.03B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.22B	11.13B	12.99B	12.05B	16.72B
	Total Assets
147.81B	145.07B	151.50B	139.61B	123.90B
	Total Debt
47.92B	46.60B	50.64B	48.70B	44.57B
	Net Debt
38.76B	36.51B	40.17B	39.16B	30.53B
	Total Liabilities
91.58B	92.01B	96.70B	90.33B	84.07B
	Stockholders Equity
51.26B	47.79B	48.90B	44.37B	36.39B
Cash Flow		Free Cash Flow
9.58B	10.02B	8.16B	8.27B	7.31B
	Operating Cash Flow
11.66B	12.24B	10.24B	10.00B	8.86B
	Investing Cash Flow
-3.28B	-3.18B	-2.49B	-15.49B	-5.18B
	Financing Cash Flow
-8.88B	-8.73B	-7.50B	785.00M	3.17B

Siemens Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 213.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 213.2 is above the 20-day moving average (MA) of 196.33, above the 50-day MA of 211.64, and above the 200-day MA of 187.97, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 59.13 is Neutral, neither overbought nor oversold. The STOCH value of 85.08 is Negative, 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	€163.65B	17.30	14.18%	2.48%	-1.13%	8.98%
DTE	73 Outperform	€159.15B	14.10	18.65%	2.81%	3.39%	-36.50%
RWE	68 Neutral	€24.70B	4.81	16.28%	3.05%	-15.16%	254.42%
SAP	66 Neutral	€305.20B	53.21	12.91%	0.84%	10.51%	203.70%
FME	65 Neutral	€14.21B	21.86	4.37%	2.46%	0.10%	27.83%
Sector *	64 Neutral	$4.24B	11.64	5.23%	249.83%	4.07%	-10.54%
BAS	56 Neutral	€39.62B	53.61	2.02%	8.00%	-2.04%	2258.97%