Siemens Energy (SMEGF) AI Stock Analysis

Compare

381 Followers

Top Page

Siemens Energy (SMEGF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$79.86B

Dividend YieldN/A

Average Volume (3M)13.92K

Price to Earnings (P/E)365.5

Beta (1Y)1.68

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees98,000

SectorIndustrials

Sector Strength90

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)0.84

Shares Outstanding799,309,700

10 Day Avg. Volume11,265

30 Day Avg. Volume13,916

Financial Highlights & Ratios

PEG Ratio-0.83

Price to Book (P/B)0.48

Price to Sales (P/S)0.00

P/FCF Ratio7.74

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$78.85

Price Target Upside-19.95% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering11

Siemens Energy Business Overview & Revenue Model

Company DescriptionSiemens Energy AG operates as an energy technology company worldwide. It operates in two segments, Gas and Power; and Siemens Gamesa Renewable Energy. The company provides gas and steam turbines, generators, gas engines, instrumentation and controls, and electrical systems, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and transformers, air and gas-insulated switchgears, AC transmission systems, offshore windfarm grid connections, high voltage direct current transmission systems, high voltage substations, digital solutions and components, and other products. It also offers rotating equipment that includes industrial and aero-derivative gas turbines, turbo- and reciprocating compressors, power generation products, and compression trains and modules, as well as solutions in the fields of electrification, automation and digitization, plant safety, plant security, and water treatment. In addition, the company develops technologies in the fields of decarbonized energy and storage systems. Further, it offers onshore wind turbine design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms. The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers. Siemens Energy AG was founded in 1866 and is based in Munich, Germany.

How the Company Makes Money

Siemens Energy Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q2-2025)

% Change Since: 22.06%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong overall performance with significant improvements across key financial metrics, leading to raised guidance for the fiscal year. However, potential tariff impacts and ongoing challenges in Siemens Gamesa's onshore wind business present notable concerns.

Q2-2025 Updates

Positive Updates

Record Order Backlog

The order backlog reached a new record high of EUR 133 billion, with a book-to-bill ratio of 1.45, reflecting strong market demand and effective operational performance.

Significant Revenue Growth

Revenue for the quarter was EUR 10 billion, reflecting a growth of just over 20% compared to the prior year, driven by strong performance across all segments.

Raised Full-Year Guidance

Guidance for the full fiscal year 2025 was raised across all KPIs: growth, margin, net income, and cash flow, reflecting the company's strong performance and market conditions.

Gas Services Expansion

Gas Services reported its highest order intake in history, with orders of EUR 7 billion, more than doubling from the previous year.

Improved Profit Margins

Profit before special items rose to EUR 900 million, with a profit margin of 9.1% for the quarter, an improvement of 700 basis points year-over-year.

Strong Cash Flow

Cash flow of EUR 1.4 billion exceeded expectations, driven by better results, customer payments, and reservation fees, taking cash flow for the first half year to EUR 2.9 billion.

Successful Cost Management

Grid Technologies benefited from significant cost degression and operational improvements, contributing to the overall margin improvement.

Strategic Investments and Partnerships

Siemens Energy entered a partnership with Rolls-Royce for small modular reactors and is expanding production capacities for medium-sized gas turbines.

Negative Updates

Potential Tariff Impact

The outlook for the global economy has become more uncertain due to potential global tariffs, with an estimated limited direct impact of up to a high double-digit million euro impact after mitigation measures.

Challenges in Siemens Gamesa

Siemens Gamesa reported a loss of EUR 249 million before special items, although this marked an improvement year-over-year. The onshore wind business continues to face challenges, with orders affected by temporary interruption of sales activities.

Divestment of Wind Business in India and Sri Lanka

Siemens Gamesa agreed to divest its wind business in India and Sri Lanka, leading to a non-cash impairment charge of EUR 265 million.

Company Guidance

During the Siemens Energy Q2 Analyst Call, the company announced a significant improvement in its fiscal year 2025 guidance across all key performance indicators (KPIs), including growth, margin, net income, and cash flow. Siemens Energy reported a strong quarterly performance, with orders reaching EUR 14.4 billion, a 52.3% increase compared to the previous year, and a book-to-bill ratio of 1.45. The order backlog hit a record high of EUR 133 billion. Revenue grew by over 20% to EUR 10 billion, while profit before special items rose to EUR 900 million, resulting in a profit margin of 9.1%. Cash flow also exceeded expectations, reaching EUR 1.4 billion for the quarter, contributing to a first-half total of EUR 2.9 billion. The company raised its full-year revenue growth outlook to 13% to 15%, up from the previous 8% to 10%, and increased its profit margin expectation by 100 basis points, driven by strong execution and cost efficiencies, particularly in Grid Technologies. Siemens Energy also highlighted a strong demand for its products, with notable orders in the gas services sector and significant contracts in regions like North America and the Middle East. Despite uncertainties surrounding global tariffs, the company remains optimistic about its market position and the resilience of its business model.

Siemens Energy Financial Statement Overview

Summary

Siemens Energy shows strong revenue growth and cash flow generation, although profitability remains a challenge. The balance sheet is healthier with no debt, providing a solid foundation for future growth.

Income Statement

Positive

Siemens Energy's revenue has shown a steady growth trajectory with a notable increase in the most recent TTM period. The gross profit margin has improved from the previous periods, indicating better cost management. However, the net profit margin remains negative due to the net loss in the TTM period, highlighting ongoing profitability challenges. The EBIT and EBITDA margins have improved but still reflect the need for operational efficiency improvements.

Balance Sheet

Positive

The balance sheet reflects a solid equity position with an improving equity ratio. Siemens Energy's debt-to-equity ratio has significantly improved with zero debt reported in the TTM period, indicating strong financial restructuring. The return on equity has turned negative due to the net loss, which is a concern for shareholder returns. Nevertheless, the company's increasing asset base and substantial cash reserves are positive signs for financial stability.

Cash Flow

Positive

Operating cash flow has shown strong growth, indicating robust cash generation capabilities. The free cash flow has also increased significantly, showcasing improved capital expenditure management and cash efficiency. The operating cash flow to net income ratio is high due to net loss, which reflects a strong operational cash flow despite profitability challenges.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
37.44B	34.47B	31.12B	29.00B	28.48B	27.46B
	Gross Profit
5.59B	4.50B	753.00M	3.42B	3.42B	2.14B
	EBIT
707.00M	2.13B	-3.26B	-371.00M	-335.00M	-1.95B
	EBITDA
2.92B	3.67B	-1.67B	1.18B	1.07B	80.00M
	Net Income Common Stockholders
198.00M	1.18B	-4.53B	-646.00M	-560.00M	-1.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.82B	7.25B	4.59B	8.52B	5.92B	5.18B
	Total Assets
54.94B	50.87B	47.91B	51.17B	44.14B	43.03B
	Total Debt
0.00	3.77B	4.78B	3.22B	2.73B	2.39B
	Net Debt
-8.98B	-2.60B	193.00M	-2.74B	-2.60B	-2.24B
	Total Liabilities
44.50B	41.51B	39.12B	33.99B	28.92B	27.64B
	Stockholders Equity
10.12B	9.07B	8.50B	17.19B	14.96B	14.94B
Cash Flow		Free Cash Flow
3.93B	1.38B	394.00M	1.06B	959.00M	674.00M
	Operating Cash Flow
5.48B	2.89B	1.62B	2.22B	1.95B	1.60B
	Investing Cash Flow
-1.52B	1.25B	-1.63B	-1.12B	-958.00M	-1.04B
	Financing Cash Flow
-787.00M	-2.26B	-1.13B	-568.00M	-340.00M	2.35B

Siemens Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMEGF		$79.86B	365.49	1.79%	―	―	―
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
NRDXF		$4.84B	152.12	3.02%	―	―	―
0J9C		€1.62B	15.33	4.78%	2.99%	―	―
0BQD		€1.42B	12.40	11.29%	3.17%	―	―
0BQE		€1.42B	11.50	11.29%	3.46%	―	―
0P6M		€171.36B	17.50	15.14%	2.38%	―	―

* Industrials Sector Average

Performance Comparison

SMEGF

Siemens Energy

98.50

73.58

295.26%

NRDXF

Nordex

19.79

5.49

38.39%

GB:0J9C

Durr AG

23.45

1.24

5.58%

GB:0BQD

KSB AG

835.00

170.99

25.75%

GB:0BQE

KSB AG

766.00

134.27

21.25%

GB:0P6M

Siemens

219.05

48.70

28.59%

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.