Shares in Siemens Energy jumped higher after the German energy company reported a preliminary increase in profitability, and orders and revenue in its first quarter which exceeded expectations. Analysts and investors alike will be keeping a close eye on the performance of Siemens AG in its upcoming earnings disclosure. The company is expected to report EPS of $1.24, up 29.17% from the prior-year quarter. As an investor, it is important to be aware of the latest developments. In the graph below, you can see the current price of the Siemens stock.
- Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.25% higher.
- S&P Global’s 24 analysts, 18 of which are still, compared to my last article, at “BUY” or “Outperform” here, are being very positive with their assumptions for the various segments.
- All its businesses have strong product portfolios to compete in long-term attractive end markets that benefit from the secular growth trends of digitalization and the energy transition.
- The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups.
- At the time of writing, the company is active in no less than 190 different countries.
S&P Global targets a valuation range between €117 on the low end and €207 on the high end. I do not know how anyone could reach €207/share for Siemens, except by applying such positive premia or growth assumptions that you’re really out in troubled waters – as I see it. S&P Global’s 24 analysts, 18 of which are still, compared to my last article, at “BUY” or “Outperform” here, are being very positive with their assumptions for the various segments.
Siemens is a disparate portfolio of high-quality businesses in different sectors. The spin off of its cyclical energy and wind turbine divisions has enhanced the group’s return profile and provides more durable returns than in the past. All its businesses have strong product portfolios to compete in long-term attractive end markets that benefit from the secular growth trends of digitalization and the energy transition. In addition, its installed base of long-life industrial equipment requires a constant stream of aftermarket upgrades and maintenance, underpinning its high-single-digit earnings growth target. However, it is important to note that over 40% of the revenue comes from the energy divisions.
Are you curious about what analysts think Siemens will do in 2024 and the years after? We have combined the forecasts of analysts using Alpha Vantage data. Remember that this figure is only a prediction of the stock price of Siemens and that this prediction does not necessarily have to come true. I’ve gotten a few requests to look at the business, and there’s a lot to like about Siemens at the right price. The Industrial Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.
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However, readers and followers shouldn’t expect me to change my targets all that much, because the company’s current trends don’t warrant or justify it. Analysts at Citi highlighted the company’s pretax cash outflow of EUR283 million as its most positive result as it reduces the risk of worse-than-expected year-end net debt and of an equity raise. Siemens AG (SIEGY) closed the most recent trading day at $90.82, moving +0.01% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.64%, while the tech-heavy Nasdaq appreciated by 0.19%. During World War II, Siemens used forced labourers to work on products for Siemens & Halske.
There are several pros and cons when it comes to Siemens shares. Siemens has diversified its business activities well into eight different divisions. This is advantageous, as it leads to a good level of risk diversification. This can make an investment in https://g-markets.net/ Siemens shares less risky and therefore more attractive. Therefore, when investing in Siemens shares, it is important to analyze these regions carefully. When the economy performs well in these regions, the profitability of Siemens will likely increase.
How can you invest in Siemens shares?
These forced labourers were located in the concentration camp Groß-Rosen and in an estimated 20 different factories that were set up around the Ravensbrück concentration camp. Before deciding whether to buy or sell Siemens, it is essential to analyze the share. In the overview below, you can see how Siemens developed over the past period. We’d like to share more about how we work and what drives our day-to-day business.
Siemens Reduces Stake in Siemens Energy
The consequences were limited, but if the company were to face a larger scandal in the future, this could significantly lower the share price. Siemens is an originally German conglomerate that has grown into a global player in the field of electronics and electrical engineering over the years. At the time of writing, Siemens is also active in various sectors. Siemens is, for example, active in industry, the energy sector, and healthcare. The upside for this ADR, and for Siemens is enhanced, as you might expect from what I’ve written. This means that the average upside for Siemens here is no less than a 35% average annual upside to an 18.5X until 2022, almost 100% on an A-rated conglomerate.
Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.25% higher. Siemens AG presently features a Zacks Rank of #1 (Strong Buy). The the stock of company has fallen by 2.97% in the past month, lagging the Industrial Products sector’s loss of 1.63% and the S&P 500’s gain of 2.48%.
This opens valuation up to NAV sensitivity, given that we need to be careful exactly how we value DI and SI to reflect the potential of large sales growth in the future. Due to the high margins and growth, I’m using valuation ranges in NAV of 12-15X EBIT multiples. This is admitting also, that the DI segment can be somewhat volatile. That means that based on company guidance, Siemens at a native share price of €99/share is trading at less than 11X P/E.
Siemens Energy AG: Q1 Preliminary Results Above Market Expectations
The company’s CFO stood at €1.8B quarterly, and the company’s industrial net debt remained at below 1.7X to EBITDA. This company is a business that’s active in a variety of different fields. It’s an industrial conglomerate that’s gone from a corporate structure similar to General Electric (GE) to a structure somewhat different following some spin-offs, divestments, and rotations.
Is it wise to invest in Siemens shares?
Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. It operates through Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services (SFS) segments. The Siemens Healthineers segment develops, manufactures, siemens trading and sells various diagnostic and therapeutic products and services; and provides clinical consulting and training services. The SFS segment offers debt and equity investments; leasing, lending, and working capital, structured, equipment, and project financing; and financial advisory services. Siemens Aktiengesellschaft was founded in 1847 and is headquartered in Munich, Germany.
My early estimates have been adjusted accordingly for the impact, and I’ve fine-tuned my models somewhat. Siemens has divested its low-margin businesses to operate independently while keeping its high-margin businesses to allow them to really deliver value. All of the company’s business segments are heavily aligned with where Siemens sees the world going and focusing for the next years.
The headquarters of Siemens are located in the German cities of Berlin and Munich. Siemens shares are listed on the Deutsche Börse with the ticker SIE. In this article, you can read whether it is wise to buy Siemens shares. Wolf Report is a senior analyst and private portfolio manager with over 10 years generating value ideas in European and North American markets.