Siemens AG (SIEGY) AI Stock Analysis

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Siemens AG

(OTC:SIEGY)

Rating:78Outperform

Price Target:

$155.00

▲(25.40%Upside)

Siemens AG scores well due to strong financial performance and a positive earnings call, indicating robust growth prospects and strategic positioning. The technical indicators support the positive outlook but highlight potential overbought conditions. Valuation remains a concern with a high P/E ratio and low dividend yield. Continued monitoring of liabilities and macroeconomic factors is advised.

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

Market Cap

$193.02B

Dividend Yield2.3%

Average Volume (3M)166.45K

Price to Earnings (P/E)18.4

Beta (1Y)1.10

Revenue Growth-1.01%

EPS Growth31.83%

CountryUS

Employees313,000

SectorIndustrials

Sector Strength87

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)1.58

Shares Outstanding1,600,000,000

10 Day Avg. Volume159,863

30 Day Avg. Volume166,447

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.24

Enterprise Value/Revenue3.07

Enterprise Value/Gross Profit7.84

Enterprise Value/Ebitda14.78

Forecast

1Y Price Target

$138.00

Price Target Upside11.65% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Siemens AG Business Overview & Revenue Model

Company DescriptionSiemens AG, headquartered in Munich, Germany, is a global technology powerhouse focusing on the areas of electrification, automation, and digitalization. The company operates through several business segments, including Digital Industries, Smart Infrastructure, Siemens Mobility, Siemens Healthineers, and Siemens Financial Services. Siemens is known for its wide range of products and services, including industrial automation equipment, building technologies, mobility solutions, medical technology, and financing solutions.

How the Company Makes MoneySiemens AG generates revenue through its diverse portfolio of businesses, each contributing to its overall earnings. The Digital Industries segment provides automation technologies and software solutions for industrial processes, generating income from hardware sales, software licenses, and digital services. The Smart Infrastructure segment focuses on products and systems for building technologies, energy distribution, and smart grid solutions, earning revenue from equipment sales and associated services. Siemens Mobility contributes through the sale of rail vehicles, rail automation, and intelligent traffic systems, often involving long-term contracts and maintenance agreements. Siemens Healthineers, a separately listed entity, provides medical imaging, laboratory diagnostics, and healthcare IT, with revenue from equipment sales and service agreements. Siemens Financial Services supports these segments by offering tailored financing solutions, leasing, and insurance services, generating income through interest, fees, and leasing arrangements. Strategic partnerships and joint ventures, such as with Alstom in the mobility sector, further enhance Siemens' revenue opportunities.

Siemens AG Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q2-2025)

% Change Since: -0.20%|

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 financial health with consistent revenue growth, robust profitability margins, and efficient cash management. While leverage is manageable, it requires monitoring to ensure stability.

Income Statement

Very Positive

Siemens AG exhibits a strong income statement performance, characterized by consistent revenue growth and solid profitability margins. The TTM revenue of €77.82 billion represents a 2.49% growth from the previous annual report. The gross profit margin stands at a robust 39.11%, indicating efficient production and cost management. Furthermore, the net profit margin increased to 12.64%, reflecting improved earnings efficiency. The EBIT and EBITDA margins are strong at 12.85% and 20.75% respectively, showcasing strong operational performance.

Balance Sheet

Positive

The balance sheet of Siemens AG is stable with a debt-to-equity ratio of 1.00, reflecting a balanced approach to leveraging. The company maintains a healthy equity ratio of 35.41%, indicating solid financial stability. The return on equity is impressive at 17.08%, suggesting effective utilization of shareholders' funds to generate profits. However, the high level of total liabilities relative to assets may pose a risk if leverage increases.

Cash Flow

Positive

Siemens AG's cash flow statement indicates healthy cash generation capabilities, with a TTM operating cash flow of €12.01 billion. The free cash flow to net income ratio of 0.99 reflects efficient conversion of profits into cash. The free cash flow growth rate shows a slight increase, suggesting stable cash flow management. The operating cash flow to net income ratio of 1.22 demonstrates a strong ability to generate cash relative to net earnings.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	77.82B	75.93B	74.88B	71.98B	62.27B	55.25B
Gross Profit	30.43B	29.82B	29.12B	25.85B	22.74B	19.89B
EBITDA	16.15B	16.17B	16.04B	11.40B	11.21B	9.41B
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	11.46B	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	10.02B	8.16B	8.27B	7.31B
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 AG Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price123.60

Price Trends

50DMA

126.81

Negative

100DMA

121.74

Positive

200DMA

112.00

Positive

Market Momentum

MACD

0.23

Positive

RSI

44.51

Neutral

STOCH

10.43

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIEGY, the sentiment is Neutral. The current price of 123.6 is below the 20-day moving average (MA) of 130.12, below the 50-day MA of 126.81, and above the 200-day MA of 112.00, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 10.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SIEGY.

Siemens AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETN	81 Outperform	$149.20B	38.49	20.84%	1.04%	7.00%	16.84%
SIEGY	78 Outperform	$193.02B	18.45	15.04%	2.30%	-1.01%	31.83%
PH	77 Outperform	$90.99B	27.41	27.16%	0.94%	-0.23%	22.41%
ITW	73 Outperform	$73.93B	22.14	109.06%	2.38%	-1.40%	11.65%
EMR	69 Neutral	$79.75B	33.84	9.82%	1.49%	6.49%	24.14%
ROK	69 Neutral	$38.83B	43.37	25.86%	1.50%	-11.19%	-22.50%
Sector *	64 Neutral	$10.61B	16.56	6.55%	2.15%	2.87%	-30.79%

* Industrials Sector Average

Performance Comparison

SIEGY

Siemens AG

125.75

42.26

50.62%

ETN

Eaton

384.76

114.94

42.60%

EMR

Emerson Electric Company

142.62

38.10

36.45%

ITW

Illinois Tool Works

253.58

19.84

8.49%

Parker Hannifin

719.04

217.92

43.49%

ROK

Rockwell Automation

350.16

106.36

43.63%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 24, 2025