Siemens AG (SIEGY) AI Stock Analysis

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Siemens AG

(OTC:SIEGY)

Rating:80Outperform

Price Target:

$143.00

▲(14.45%Upside)

Siemens AG demonstrates strong financial performance with robust profitability and solid cash flow management. The technical analysis indicates a bullish trend, supported by the stock's position above key moving averages. Valuation is reasonable, although not particularly attractive for dividend-focused investors. The positive earnings call, highlighting strong order growth and strategic acquisitions, reinforces the company's resilience and growth potential despite some challenges in automation and trade uncertainties.

Siemens AG (SIEGY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$195.61B

Dividend Yield1.6%

Average Volume (3M)187.90K

Price to Earnings (P/E)18.6

Beta (1Y)1.08

Revenue Growth-1.01%

EPS Growth31.83%

CountryUS

Employees313,000

SectorIndustrials

Sector Strength91

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)1.58

Shares Outstanding1,600,000,000

10 Day Avg. Volume133,369

30 Day Avg. Volume187,901

Financial Highlights & Ratios

PEG Ratio1.04

Price to Book (P/B)2.76

Price to Sales (P/S)0.00

P/FCF Ratio17.90

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$125.30

Price Target Upside0.29% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Siemens AG Business Overview & Revenue Model

Company DescriptionSiemens 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 MoneySiemens AG generates revenue through its diversified portfolio of products and services across its various business segments. The Digital Industries segment offers automation systems, industrial software, and related services, earning revenue from the sale of hardware and software, as well as long-term service contracts. The Smart Infrastructure segment provides solutions for intelligent building technologies and grid systems, generating income from the sale of equipment and software, as well as maintenance services. The Mobility segment focuses on rail and road transportation systems, earning revenue from the sale of trains, rail automation systems, and related services. Siemens Healthineers, a separately managed business, offers medical devices and solutions, such as imaging systems and diagnostics, contributing significantly to Siemens' overall revenue. Additionally, Siemens benefits from strategic partnerships and collaborations, as well as its financial services division, which provides financing solutions and contributes to its earnings.

Siemens AG Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q2-2025)

% Change Since: 0.88%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

Siemens delivered a strong performance in the second quarter with growth in key segments like Mobility and Healthineers and maintained a healthy order backlog. However, the company faced challenges such as a decline in automation revenue and trade uncertainties. Despite these challenges, Siemens confirmed its guidance for fiscal 2025.

Q2-2025 Updates

Positive Updates

Strong Book-to-Bill Ratio

Siemens achieved a strong book-to-bill ratio of 1.1, indicating a solid demand for its products across all business segments.

Significant Order Backlog

The company reported a high-quality order backlog totaling €117 billion, supporting future profitable growth.

Growth in Mobility and Healthineers

Group orders reached €21.6 billion, up 9% year-over-year, driven by strong performance in Mobility and Healthineers segments.

Robust Revenue Growth

Revenue grew by 6%, with significant double-digit contributions from Mobility and Smart Infrastructure segments.

Operational Profit Margin

The Industrial business achieved an operational profit margin of 15.3%, excluding the wiring accessories gain.

Positive Free Cash Flow

Siemens reported a strong free cash flow of €2.1 billion in the Industrial business.

Strategic Acquisitions

Siemens closed the Altair acquisition earlier than expected and acquired Dotmatics to expand offerings in the life sciences sector.

Negative Updates

Decline in Automation Revenue

Automation revenue decreased by 6% compared to the prior year, with discrete automation down 8%.

Tariff and Trade Uncertainties

Rising tariffs and trade tensions have created uncertainty, affecting customer investment sentiment in core industries.

Challenges in Software Segment

The software business saw a modest decline of 2%, with a significant drop in the EDA business due to tough comparables.

High Severance Costs Expected

Siemens anticipates material severance charges in the second half of fiscal 2025, which will impact margins.

Company Guidance

In the Siemens 2025 Second Quarter Conference Call, the company provided a robust outlook for the fiscal year despite rising macroeconomic and geopolitical uncertainties. Key metrics included a book-to-bill ratio of 1.1 and group orders reaching €21.6 billion, up 9% from the previous year. The order backlog stands at €117 billion, with significant contributions from Mobility and Healthineers. Revenue growth was 6%, driven by strong performances in Mobility and Smart Infrastructure, with the latter achieving 18% growth in electrification. The Industrial business reported a profit of €3.2 billion with a 15.3% operational profit margin, excluding gains from divestments. Siemens confirmed its group outlook for fiscal year 2025, expecting revenue growth between 3% and 7% and earnings per share pre-PPA of €10.40 to €11. The company highlighted strategic moves, including the acquisition of Dotmatics and the completion of the Altair acquisition to enhance its software offerings and expand its market presence in life sciences and industrial AI.

Siemens AG Financial Statement Overview

Summary

Siemens AG demonstrates strong profitability with robust revenue growth, efficient operations, and solid cash flow management. The company effectively balances growth with financial stability, positioning it favorably in the industrial goods sector.

Income Statement

Very Positive

Siemens AG exhibits strong profitability with a TTM gross profit margin of 38.89% and a net profit margin of 12.45%. The company has shown consistent revenue growth, with a notable 7.18% increase from 2022 to 2023. Its EBIT margin is robust at 12.34%, and the EBITDA margin stands at 18.01%, highlighting efficient operations and cost management. Overall, Siemens demonstrates strong revenue growth and profitability, positioning it well within the industrial goods sector.

Balance Sheet

Very Positive

The balance sheet of Siemens AG reflects a healthy financial position with a debt-to-equity ratio of 0.84, indicating moderate leverage. The return on equity (ROE) is impressive at 16.19%, showcasing effective use of equity to generate profits. With an equity ratio of 37.64%, the company maintains a solid equity base relative to its assets, providing stability and reducing financial risk.

Cash Flow

Very Positive

Siemens AG's cash flow statement is strong, with a notable free cash flow growth rate of 13.40% over the past year. The operating cash flow to net income ratio is 1.19, indicating efficient conversion of net income into cash. The free cash flow to net income ratio of 0.96 further supports the company's strong cash generation capabilities, underpinning its ability to fund operations and investments effectively.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
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
9.53B	9.46B	9.36B	7.34B	6.42B	4.39B
	EBITDA
13.90B	16.17B	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	11.46B	11.13B	12.99B	12.05B	16.72B
	Total Assets
157.85B	147.81B	145.07B	151.50B	139.61B	123.90B
	Total Debt
49.88B	47.92B	46.60B	50.64B	48.70B	44.57B
	Net Debt
35.96B	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 AG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price124.94

Price Trends

50DMA

116.19

Positive

100DMA

115.12

Positive

200DMA

105.30

Positive

Market Momentum

MACD

1.74

Positive

RSI

58.59

Neutral

STOCH

74.04

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIEGY, the sentiment is Positive. The current price of 124.94 is above the 20-day moving average (MA) of 123.39, above the 50-day MA of 116.19, and above the 200-day MA of 105.30, indicating a bullish trend. The MACD of 1.74 indicates Positive momentum. The RSI at 58.59 is Neutral, neither overbought nor oversold. The STOCH value of 74.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIEGY.

Siemens AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIEGY	80 Outperform	$195.61B	18.65	15.04%	1.60%	-1.01%	31.83%
ETN	80 Outperform	$129.70B	33.46	20.84%	1.16%	7.00%	16.84%
ITW	79 Outperform	$72.54B	21.79	107.62%	2.38%	-1.85%	12.04%
PH	76 Outperform	$85.77B	25.84	27.16%	1.00%	-0.23%	22.41%
EMR	73 Outperform	$69.47B	29.48	9.82%	1.71%	6.49%	24.14%
ROK	68 Neutral	$36.56B	40.83	25.86%	1.60%	-11.19%	-22.50%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%

* Industrials Sector Average

Performance Comparison

SIEGY

Siemens AG

124.94

32.33

34.91%

ETN

Eaton

331.45

12.74

4.00%

EMR

Emerson Electric Company

123.51

16.69

15.62%

ITW

Illinois Tool Works

247.56

13.78

5.89%

Parker Hannifin

671.26

150.65

28.94%

ROK

Rockwell Automation

324.33

73.69

29.40%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.