Siemens SIE.DE
What does Siemens do?
Siemens is a globally active technology group focused on automation, digitalization and infrastructure. The company earns money from hardware, software, services and solutions for industry, buildings, energy and rail transport. The Digital Industries segment supplies automation systems, drives, controls and industrial software for product development and manufacturing. Smart Infrastructure offers products and systems for power distribution, building technology and energy management.
Mobility provides rail vehicles, signaling technology and rail infrastructure and often works with public-sector customers. Siemens Healthineers specializes in medical technology, imaging and diagnostics. Siemens Financial Services supports customers with financing solutions. Competitively, Siemens has a broad installed base, close customer relationships and a combination of automation technology and software. Depending on the business area, competitors include international industrial groups, software providers and specialists in medical technology or rail technology.
Score profile
Rank vs. Specialty Industrial Machinery (49 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Siemens ranks in the middle in the group Specialty Industrial Machinery (4.3/10). On growth, the company ranks in the middle in the group Specialty Industrial Machinery (5.0/10). On valuation (higher = cheaper), the stock ranks below average in the group Specialty Industrial Machinery (3.4/10). On financial strength, Siemens ranks below average in the group Specialty Industrial Machinery (4.0/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 20.9x | 18.4x | better than 38 % |
| Trailing P/E | 27.2x | 26.2x | better than 46 % |
| PEG ratio | 2.9x | 1.7x | better than 14 % |
| EV/EBITDA | 20.4x | 16.5x | better than 24 % |
| Price/sales | 2.6x | 3.0x | better than 58 % |
| Price/book | 3.1x | 4.1x | better than 68 % |
| Revenue growth | 7.3% | 7.1% | better than 52 % |
| Earnings growth | 12.8% | 12.9% | better than 48 % |
| Gross margin | 39.4% | 40.2% | better than 46 % |
| Operating margin | 14.9% | 16.5% | better than 44 % |
| Net margin | 9.8% | 10.3% | better than 42 % |
| Return on equity | 12.5% | 13.5% | better than 42 % |
| Debt/equity | 66.4% | 47.2% | better than 34 % |
| Current ratio | 1.4x | 1.9x | better than 32 % |
| Free cash flow yield | 3.1% | 3.1% | better than 54 % |
| Dividend yield | 2.0% | 1.2% | – |
| Payout ratio | 53.5% | 32.4% | – |
| Beta | 1.34 | 1.06 | – |
Valuation: what is Siemens worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Siemens a model range of 133.53 EUR to 239.46 EUR per share.
24 analysts, average rating “Buy”, average price target 305.18 EUR (+12.4%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Industrial companies' willingness to invest in automation and digitalization largely determines demand in the largest segment.
- Recurring revenue from software, services and the installed base supports earnings quality across economic cycles.
- Public and private infrastructure investment in power, buildings and rail secures long-term project and order volumes.
Risks
- Economic weakness in manufacturing industries can noticeably weigh on orders and lead to inventory reductions at customers.
- Complex large-scale projects in the mobility business carry cost, schedule and quality risks.
- A complex group structure, exchange rates and geopolitical trade restrictions make management and global supply chains more difficult.
What to look for with Siemens
The ratio of orders received to revenue (book-to-bill) shows how well the project pipeline is filled and where revenue is likely to head in this cyclical business.