Introduction
Siemens aktie (SIEGY) is a German multinational business corporation renowned for its industrial manufacturing, transportation, power generation, and transmission. It is listed on the Frankfurt Stock Exchange, where its trading shares are referred to by the symbol SIE. Siemens is a leading global company that was established in 1847. Its operational hub is in Munich, Germany. They are in almost all countries globally through their affiliates and employ more than 303,000 people. Siemens Aktie is a part of Germany’s primary stock market index, the DAX index, and is ranked among the most traded stocks in Europe. The features of its operation show that the company has been consistently innovative and has adapted to the shifts in business environments for more than 175 years.
Siemens Aktie’s Business Segments
Siemens organizes its operations into four main business segments:
- Digital Industries – Provides solutions and services in industrial automation systems and software. Its essential products include factory automation solutions, industrial control products, and machine tools.
- Smart Infrastructure – Specializes in energy management systems for distribution networks, building automation technologies, fire safety, and security solutions for infrastructures and properties in the commercial real estate market.
- Mobility – Offers rail transportation products and services like high-speed trains, locomotives, rail electrification, and rail automation systems.
- Siemens Healthineers – A separately listed subsidiary (SHL) that provides medical imaging systems, in-vitro diagnostics equipment, advanced healthcare software, and lab testing services.
Digital industries and intelligent infrastructure contribute over 60% of Siemens Aktie’s sales and provide global industrial manufacturing and energy infrastructure solutions.
Recent Financial Performance
For the fiscal year 2022 ended September 30, Siemens Aktie reported:
- Revenues of €72.0 billion per annum and an annual growth rate of 7.2 percent.
- Net income of €7.89 billion – a year-on-year growth of over 100%.
- EBIT of €640 million and EPS of €8.32 per share.
- Adoption of new technologies and increasing growth in digital industries and smart infrastructure segments.
After the large-scale corporate restructuring and optimization of its asset portfolio, the company has regained earnings growth momentum in the last three years. Free cash flows are also high, exceeding €5 billion, meaning that Siemens Aktie can continue to pay dividends and invest in strategic growth initiatives.
Siemens Aktie’s Market Analysis
As of early February 2023, some key stats for Siemens shares are:
- Market Cap – €100 billion+
- 52 Week Range: €113 to €142 per share
- P/E Ratio – close to 14 times.
- Dividend Yield – 3.6% safe yield.
Siemens Aktiv’s stock price has preserved its strength despite continued market fluctuations worldwide originating from macroeconomic forces, increasing interest rates, and concerns over the global slowdown. The shares are trading almost at their 52-week low, which suggests they may be an exciting proposition for long-term shareholders.
Growth Drivers and Potential
Siemens is a global industrial and technology company with management skills in most of its segments. The company remains at the vanguard of the worldwide digital revolution affecting industrial, energy, healthcare, and mobility structures.
Some of the key growth drivers for Siemens Aktie are:
- Growth in demand for automation across industries, artificial intelligence, IoT CPS for intelligent manufacturing, effective product servicing, and advanced supply chain networks.
- Renewable energy systems on a global level, integrated effective power transmission and distribution for energy security and transition to sustainable energy systems.
- Connected health systems, remote diagnostics, and telemedicine solutions – the further trend in healthcare digitization.
Further, Siemens has over €85 billion order backlogs across its business segments, guaranteeing revenue certainty in the following 3-5 years even if macro headwinds persist in 2023. Getting optimizations also raises margins for further bottom-line growth, which also looks suitable for the company.
Siemens Aktie has a relatively strong focus on emerging markets that can boost the company’s performance when global problems with supply chains in manufacturing are resolved and demand growth is back in Asia and Latin America.
Investment Thesis
While evaluating Siemens’ stock, it appears that the shares are fairly valued in the current market for buyers willing to invest in future megatrends in industrial technology. It has sound financials with no debt, a high credit rating of AA- S&P, high profitability (EBITA margins greater than 11%), and market leadership in many end markets.
Further, as macro and geopolitical drivers become less of an issue over 2023-24, more order strength may drive mid-high single-digit growth. Further, its consistency in issuing dividends and share repurchases makes it attractive to income investors.
Siemens is making strategic wagers on AI, cloud, blockchain cybersecurity, and clean hydrogen value chain—the fields that will be the key disruptors in the next decade. While these technology areas are still a tiny fraction of the overall revenues even today, they could add to Siemens Aktie’s group margins and valuations in the future.
Siemens Aktie – Answers To The Most Commonly Asked Questions
Here are some common questions investors have about Siemens stock:
Is Siemens Aktie an excellent stock to buy right now?
Currently, Siemens stock is about 23% lower than its all-time high, which indicates reasonable valuations for long-term investments. There are macro risks, but the company-specific factors are favorable.
What are the expectations for Siemens’s earnings in 2023?
The consensus is mid-single-digit revenue growth with EPS of approximately €8.5 from executing large orders in the backlog. Margin improvements seem likely.
Is Siemens’s dividend safe?
Further, Siemens’ payout ratio seems quite conservative, at under 50% of earnings; thus, the company can easily sustain its dividends given its healthy cash flows. It has been paying dividends to its shareholders for over two decades and has done it well, with a steady increase in its dividend payment.
What is Siemens AG’s credit rating?
Siemens has a healthy balance sheet, an S&P credit rating, and the financial freedom to invest.
Siemens Company: Which business segment has the highest growth rate at present?
Digital Industries, which concentrates on systems, software, and services for industrial automation, has the most robust growth and margin drivers.
Conclusion
In conclusion, despite the current economic environment and the controversies surrounding Foken’s memo, Siemens Aktie stock is still a sound investment for future megatrends such as automation, urbanization, climate technology, and health care. This is mainly due to the company’s aggressive repositioning from a diversified conglomerate into a technology and industrial solutions firm.
Siemens appears well-placed as the demand outlook strengthens for 2023-2024 across key end markets. The current valuations seem to factor in most of the near-term macro headwinds and could, therefore, be seen as providing reasonable entry points for long-term focused investors. Strategic technology bets offer option-like gains without being overly threatened by still somewhat moderate core industrial operations.
