Siemens AG (SIEGY) AI Stock Analysis

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Siemens AG

(OTC:SIEGY)

74Outperform

Siemens AG demonstrates strong financial performance with robust profitability and efficient operations. Despite positive earnings call highlights, including growth in Smart Infrastructure and sustainability, challenges in automation and certain regional markets temper enthusiasm. Technical analysis indicates a neutral to slightly bearish short-term trend. The stock is fairly valued, with a slight premium justified by its strong fundamentals.

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

Market Cap

$185.61B

Dividend Yield1.67%

Average Volume (3M)306.41K

Price to Earnings (P/E)18.2

Beta (1Y)1.14

Revenue Growth-1.04%

EPS Growth9.00%

CountryUS

Employees313,000

SectorIndustrials

Sector Strength82

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)1.07

Shares Outstanding1,600,000,000

10 Day Avg. Volume255,088

30 Day Avg. Volume306,412

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

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 Upside4.51% 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 that focuses on the areas of electrification, automation, and digitalization. The company operates through several business segments, including Digital Industries, Smart Infrastructure, Mobility, and Siemens Healthineers, each offering a range of innovative products and services. Siemens is known for its engineering excellence and is a leader in industrial manufacturing solutions, infrastructure solutions, and medical technology solutions.

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 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.

Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
75.93B	77.77B	71.98B	62.27B	55.25B
	Gross Profit
29.82B	29.65B	25.85B	22.74B	19.89B
	EBIT
9.46B	9.36B	7.34B	6.42B	4.39B
	EBITDA
16.17B	15.27B	13.48B	11.64B	6.58B
	Net Income Common Stockholders
8.30B	7.95B	3.72B	6.16B	4.03B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.46B	11.13B	12.99B	12.05B	16.72B
	Total Assets
147.81B	145.07B	151.50B	139.61B	123.90B
	Total Debt
47.92B	46.60B	50.64B	48.70B	44.57B
	Net Debt
38.76B	36.51B	40.17B	39.16B	30.53B
	Total Liabilities
91.58B	92.01B	96.70B	90.33B	84.07B
	Stockholders Equity
51.26B	47.79B	48.90B	44.37B	36.39B
Cash Flow		Free Cash Flow
9.58B	10.02B	8.16B	8.27B	7.31B
	Operating Cash Flow
11.66B	12.24B	10.24B	10.00B	8.86B
	Investing Cash Flow
-3.28B	-3.18B	-2.49B	-15.49B	-5.18B
	Financing Cash Flow
-8.88B	-8.73B	-7.50B	785.00M	3.17B

Siemens AG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price119.89

Price Trends

50DMA

116.36

Positive

100DMA

110.13

Positive

200DMA

101.83

Positive

Market Momentum

MACD

2.10

Negative

RSI

61.72

Neutral

STOCH

85.77

Negative

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 119.89 is above the 20-day moving average (MA) of 113.28, above the 50-day MA of 116.36, and above the 200-day MA of 101.83, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of 85.77 is Negative, 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETN	81 Outperform	$116.65B	30.14	20.84%	1.26%	7.00%	16.84%
EMR	76 Outperform	$61.08B	25.76	9.82%	1.87%	6.49%	24.14%
PH	76 Outperform	$79.71B	23.83	27.16%	1.02%	-0.23%	22.41%
SIEGY	74 Outperform	$185.61B	18.21	14.40%	1.67%	-1.04%	9.00%
ITW	74 Outperform	$70.28B	21.20	107.62%	2.43%	-1.85%	12.04%
ROK	69 Neutral	$28.61B	31.59	25.86%	1.76%	-11.19%	-22.50%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.06%	-10.21%

* Industrials Sector Average

Performance Comparison

SIEGY

Siemens AG

120.55

20.77

20.82%

ETN

Eaton

309.87

-16.33

-5.01%

EMR

Emerson Electric Company

112.55

-0.94

-0.83%

ITW

Illinois Tool Works

242.50

-1.98

-0.81%

Parker Hannifin

647.59

92.21

16.60%

ROK

Rockwell Automation

294.80

24.99

9.26%

Siemens AG Earnings Call Summary

Earnings Call Date:Feb 13, 2025

(Q1-2025)

% Change Since: 9.02%|

Next Earnings Date:May 15, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive sentiment overall, with strong financial performance and strategic advancements in key areas like Smart Infrastructure and sustainability. However, there are some challenges, particularly in automation and certain regional markets like Europe and China.

Q1-2025 Updates

Positive Updates

Record Book-to-Bill Ratio

Siemens achieved a book-to-bill ratio of 1.09, increasing their order backlog to a record high of €118 billion.

Strong Free Cash Flow

Siemens generated an impressive €1.6 billion of free cash flow, surpassing market expectations.

Smart Infrastructure Growth

Smart Infrastructure orders and revenue grew significantly, with electrification business seeing double-digit growth.

Sustainability Achievements

Siemens reduced CO2 equivalent emissions by 60% since 2019 and received recognition for its sustainability efforts.

Software Business Growth

The software business of Digital Industries grew by 15%, driven by strong performance in the EDA and PLM segments.

Solid Profit Margin

Siemens achieved a solid profit of €2.5 billion in the Industrial business, with strong market performance.

Negative Updates

Decline in Group Orders

Group orders were 8% below the prior year, with challenges seen in large contract volumes.

Automation Revenue Decline

The automation business revenue was down 19% due to destocking, particularly impacting the discrete automation segment.

Weak Economic Activity in Europe

Europe, particularly Germany, experienced a lack of momentum and is still in crisis mode due to economic uncertainties.

Softness in China

Despite some recovery, overall economic activity in China remained sluggish, impacting revenue.

Company Guidance

During Siemens' 2025 Q1 conference call, the company provided several key metrics and guidance on its performance and outlook. Siemens reported a book-to-bill ratio of 1.09, with group orders at €20.1 billion, marking an 8% decrease compared to the previous year. The backlog reached a record high of €118 billion. The company saw strong momentum in Smart Infrastructure, with orders rising and revenue growth at 3%, driven by the electrification business. Digital Industries showed signs of recovery with a book-to-bill above one for the first time in two years, despite a 19% drop in automation revenue due to destocking, particularly in China. However, the software business within Digital Industries grew by 15%. Siemens reported a solid profit of €2.5 billion in its Industrial business, with earnings per share pre-PPA at €2.22. Free cash flow was robust at €1.6 billion. Regionally, the Americas grew by 17%, while EMEA remained flat and Asia and Australia declined by 4%. Looking forward, Siemens expects revenue growth for Digital Industries to be between -6% and +1%, with a profit margin of 15% to 19%. The company highlighted its strategic focus on AI and sustainability, with offerings that could potentially avoid 144 million tons of greenhouse gas emissions over their lifetime.

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.