Siemens (SIE) AI Stock Analysis

• Market Cap: €171.71B
• Dividend Yield: 2.38%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.59
• Revenue Growth: -0.04%
• EPS Growth: 33.26%
• Country: DE
• Employees: 313,000
• Sector: Industrials
• Sector Strength: 93
• Industry: Industrial - Machinery
• EPS (TTM): 2.83
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 1,236,555
• 30 Day Avg. Volume: 1,202,127
• PEG Ratio: 1.10
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.16
• 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: €229.50
• Price Target Upside: 4.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 75 Outperform
• Price Target: ―

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 Impact

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 Prospects

A mid-term guidance upgrade is expected, with Siemens raising forecasts to 7.5% growth to 2028 and a margin gain to 19%.

Negative Factors

Investor Concerns

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

Market Concerns

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

Valuation Issues

Siemens still labors under a sizeable valuation discount.

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 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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
77.23B	75.93B	77.77B	71.98B	62.27B	55.25B
	Gross Profit
30.03B	29.82B	29.65B	25.85B	22.74B	19.89B
	EBIT
9.50B	9.56B	9.36B	7.34B	6.42B	4.39B
	EBITDA
15.11B	15.34B	15.27B	13.48B	11.64B	6.58B
	Net Income Common Stockholders
9.62B	8.30B	7.95B	3.72B	6.16B	4.03B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.71B	10.22B	11.13B	12.99B	12.05B	16.72B
	Total Assets
157.85B	147.81B	145.07B	151.50B	139.61B	123.90B
	Total Debt
0.00	47.92B	46.60B	50.64B	48.70B	44.57B
	Net Debt
-13.93B	38.76B	36.51B	40.17B	39.16B	30.53B
	Total Liabilities
93.02B	91.58B	92.01B	96.70B	90.33B	84.07B
	Stockholders Equity
59.40B	51.26B	47.79B	48.90B	44.37B	36.39B
Cash Flow		Free Cash Flow
9.25B	9.58B	10.02B	8.16B	8.27B	7.31B
	Operating Cash Flow
11.43B	11.66B	12.24B	10.24B	10.00B	8.86B
	Investing Cash Flow
-151.00M	-3.28B	-3.18B	-2.49B	-15.49B	-5.18B
	Financing Cash Flow
-8.56B	-8.88B	-8.73B	-7.50B	785.00M	3.17B

Siemens Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 218.80
• 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 218.8 is above the 20-day moving average (MA) of 218.63, above the 50-day MA of 207.53, and above the 200-day MA of 194.26, indicating a bullish trend. The MACD of 1.88 indicates Positive momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 69.94 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	€171.71B	17.53	15.14%	2.38%	-0.04%	33.26%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
0J9C		€1.61B	15.23	4.78%	3.01%	―	―
0MPJ		€9.70B	25.63	16.56%	1.92%	―	―
0EXP		€3.90B	13.47	12.41%	2.10%	―	―
0LQ4		€4.51B	15.73	15.25%	1.82%	―	―
SMEGF		$79.69B	374.81	1.79%	―	―	―