Siemens (SIE) AI Stock Analysis

• Market Cap: €177.82B
• Dividend Yield: 2.31%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.59
• Revenue Growth: -0.04%
• EPS Growth: 33.26%
• Country: DE
• Employees: 313,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 2.83
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 875,288
• 30 Day Avg. Volume: 1,030,640
• PEG Ratio: 7.40
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.73
• 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: €224.00
• Price Target Upside: -0.40% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: €248.00 ▲(10.27%Upside)

Siemens' strong financial performance, characterized by robust growth and efficient cash management, heavily influences its positive stock score. The technical analysis supports a stable outlook, while the valuation indicates a fair market pricing. The absence of notable corporate events or earnings call highlights does not affect the overall assessment.

Positive Factors

Acquisition

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

Financial Performance

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

Profitability

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

Negative Factors

Market Concerns

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

Profit Expectations

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

Siemens Business Overview & Revenue Model

Company Description

Siemens AG is a global powerhouse in electronics and electrical engineering, operating in more than 200 countries. The company focuses on the areas of electrification, automation, and digitalization. Siemens is a leading supplier of systems for power generation and transmission, as well as medical diagnostics. The company also plays a significant role in infrastructure solutions, industrial automation, and building technologies.

How the Company Makes Money

Siemens generates revenue through several key business segments: Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services. Digital Industries focuses on automation and digitalization in the industrial sector, providing integrated software and hardware solutions. Smart Infrastructure offers building automation, energy distribution, and smart grid solutions. The Mobility segment provides rail and road transportation solutions, including rolling stock, rail automation, and electrification. Siemens Healthineers, a separately managed business, offers medical technology and diagnostic solutions. Siemens Financial Services supports these segments with financing solutions to facilitate customer investments in technology and infrastructure. Revenue is primarily generated through the sale of products and services across these segments, with long-term contracts and service agreements contributing to steady income streams. Strategic partnerships and joint ventures also play a role in expanding market reach and technological capabilities.

Siemens Financial Statement Overview

Summary

Siemens shows strong financial health with robust revenue growth, solid profitability margins, and efficient cash flow management. Despite moderate leverage, its operational efficiency and cash generation capabilities underscore a leading position in the industrial machinery sector.

Income Statement

Siemens shows strong revenue growth with a 3% increase in TTM revenue from the previous year, supported by solid gross and net profit margins at 39.1% and 12.6% respectively. The EBIT and EBITDA margins, at 12.8% and 20.5%, indicate effective cost management and operational efficiency. The company demonstrates consistent profitability and growth trajectory.

Balance Sheet

The balance sheet of Siemens reflects a stable financial position with a debt-to-equity ratio of 1.00, indicating balanced leverage. A return on equity (ROE) of 17.1% suggests strong shareholder value creation. The equity ratio of 35.4% highlights a solid equity base, though there is potential risk if debt levels rise.

Cash Flow

Siemens' cash flow is robust, with a notable free cash flow growth rate of 1.8% in the TTM period. The operating cash flow to net income ratio of 1.22 and a free cash flow to net income ratio of 0.99 demonstrate strong cash generation and liquidity. The cash flow performance indicates excellent cash management and operational strength.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	77.82B	75.93B	77.77B	71.98B	62.27B	55.25B
Gross Profit	30.43B	29.82B	29.65B	25.85B	22.74B	19.89B
EBITDA	15.97B	15.34B	15.27B	13.48B	11.64B	6.58B
Net Income	9.84B	8.30B	7.95B	3.72B	6.16B	4.03B
Balance Sheet
Total Assets	162.59B	147.81B	145.07B	151.50B	139.61B	123.90B
Cash, Cash Equivalents and Short-Term Investments	23.93B	10.22B	11.13B	12.99B	12.05B	16.72B
Total Debt	57.52B	47.92B	46.60B	50.64B	48.70B	44.57B
Total Liabilities	99.42B	91.58B	92.01B	96.70B	90.33B	84.07B
Stockholders Equity	57.57B	51.26B	47.79B	48.90B	44.37B	36.39B
Cash Flow
Free Cash Flow	9.75B	9.58B	10.09B	8.16B	8.27B	7.36B
Operating Cash Flow	12.01B	11.66B	12.24B	10.24B	10.00B	8.86B
Investing Cash Flow	-5.97B	-3.28B	-3.18B	-2.49B	-15.49B	-5.18B
Financing Cash Flow	-1.05B	-8.88B	-8.73B	-7.50B	785.00M	3.17B

Siemens Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 224.90
• 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 224.9 is above the 20-day moving average (MA) of 223.32, above the 50-day MA of 218.82, and above the 200-day MA of 204.17, indicating a bullish trend. The MACD of 2.55 indicates Negative momentum. The RSI at 53.40 is Neutral, neither overbought nor oversold. The STOCH value of 63.46 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	78 Outperform	€177.82B	18.15	15.14%	2.31%	-0.04%	33.26%
G1A	75 Outperform	€10.20B	26.95	16.56%	1.87%	1.79%	0.06%
ENR	73 Outperform	$80.60B	375.55	1.79%	―	17.17%	―
DUE	72 Outperform	€1.62B	15.36	4.78%	2.97%	-10.85%	-3.64%
KRN	65 Neutral	€4.11B	14.29	15.37%	2.00%	10.25%	20.72%
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%
JUN3	65 Neutral	€3.43B	11.88	12.41%	2.38%	-2.78%	-3.44%