Download PDF

1. Company Snapshot

1.a. Company Description

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 segments.The Digital Industries segment offers automation systems and software for factories, numerical control systems, motors, drives and inverters, and integrated automation systems for machine tools and production machines; process control systems, machine-to-machine communication products, sensors and radio frequency identification systems; software for production and product lifecycle management, and simulation and testing of mechatronic systems; and cloud-based industrial Internet of Things operating systems.


The Smart Infrastructure segment offers products, systems, solutions, services, and software to support sustainable transition in energy generation from fossil and renewable sources; sustainable buildings and communities; and buildings, electrification, and electrical products.The Mobility segment provides passenger and freight transportation, such as vehicles, trams and light rail, and commuter trains, as well as trains and passenger coaches; locomotives for freight or passenger transport and solutions for automated transportation; products and solutions for rail automation; electrification products; and intermodal solutions.The Siemens Healthineers segment develops, manufactures, and sells various diagnostic and therapeutic products and services; and provides clinical consulting services.


The Siemens Financial Services segment offers debt and equity investments; leasing, lending, and working capital financing solutions; and equipment, project, and structured financing solutions.Siemens Aktiengesellschaft was founded in 1847 and is headquartered in Munich, Germany.

Show Full description

1.b. Last Insights on SIE

Siemens' recent performance has been impacted by several negative factors. The company's medium-term sales growth forecast hike failed to alleviate investor concerns, leading to a nearly 6% share price drop. Disappointment about next year's profit outlook also contributed to the decline. Additionally, Siemens expects currency headwinds to weigh on results, particularly as it plans to spin off a portion of its stake in Siemens Healthineers. Despite a strong sales outlook, the company's net profit fell, and revenue growth is expected to be impacted by currency fluctuations.

1.c. Company Highlights

2. Siemens Q3 Earnings: Robust Growth Despite Macro Headwinds

Siemens delivered solid fiscal Q3 2025 results, with revenue growing 5% year-over-year, reaching EUR 24.7 billion. Operational profit margin stood at 17.7%, a slight increase from the prior year. Earnings per share reached EUR 1.79, exceeding analyst expectations. This strong performance was driven by robust growth in the mobility, smart infrastructure, and Siemens Healthineers businesses.

Publication Date: Aug -08

📋 Highlights
  • Group Orders Surge: Siemens achieved EUR 24.7 billion in Q3 orders, a 28% YoY increase, primarily driven by the mobility segment.
  • DI Automation Growth: Digital Industries reported a 19% YoY rise in automation orders, marking the first annual growth in almost two years despite a 10% revenue decline.
  • Smart Infrastructure Performance: The electrification business under Smart Infrastructure surged 16% YoY, fueled by data center projects, while overall revenue grew 9% with margin expansion.
  • Strategic Investments: Siemens allocated EUR 1 billion to upgrade IT infrastructure (ERP, CRM, data fabric), reinforcing its "ONE Tech Company" strategy and digital capabilities.
  • Software Momentum: The software business is gaining traction, with new orders and revenue in Q3 reaching EUR 2 billion, driven by PLM SaaS transitions and a backlogged sales funnel.

Digital Industries: Facing Challenges But Showing Signs of Improvement

While Digital Industries (DI) saw a sequential increase in orders, they remained below the prior year due to tough comparisons and ongoing trade tensions impacting customer investment sentiment. Automation orders saw a significant year-over-year increase of 19%, while software orders were impacted by a decline in large license deals. Revenue declined 10%, with automation revenue showing year-over-year growth for the first time in almost two years. This slowdown in DI reflects a broader trend in the industrial automation sector, which is facing headwinds from weakening demand in China and Europe.

Smart Infrastructure: Continued Strong Performance

Smart Infrastructure continued its strong performance with 9% revenue growth and continued margin expansion. The electrification business was a standout, growing 16% on strong backlog execution driven by the data center vertical. This robust growth is driven by increasing demand for data center infrastructure and Siemens' strong position in this growing market.

Mobility: Riding High on Demand for Rolling Stock

Mobility also performed strongly, with a 19% revenue increase, driven by high demand for rolling stock. This segment benefited from strong backlog execution and contributions from customer services. The global push for electrification and sustainable transportation is driving strong demand for Siemens' rail solutions.

Guidance and Outlook: Confident in Future Growth

Siemens reaffirmed its fiscal 2025 guidance, projecting 6% to 9% comparable revenue growth and an operational profit margin at the upper end of 17% to 18%, excluding the gain from divesting the wiring accessories business. The company is well-positioned for continued growth, driven by its strong execution, strategic investments, and focus on key growth areas such as data centers and software.

Valuation: Reflecting Strong Growth Prospects

Siemens' current valuation metrics indicate that the market is pricing in strong growth prospects. The company's P/E ratio of 18.54 is above the industry average, suggesting that investors are willing to pay a premium for its growth potential. The P/B ratio of 3.17 also indicates that the market values Siemens' assets highly.

3. NewsRoom

Card image cap

AWS Introduces Graviton5—the Company’s Most Powerful and Efficient CPU

Dec -04

Source:

Card image cap

Can GE Vernova's R&D Pipeline Boost Its Clean-Energy Position?

Dec -04

Source: zacks.com

Card image cap

Censys and Rilian Technologies Partner to Strengthen Cyber Defense and Critical Infrastructure Security Across the Middle East

Dec -04

Source:

Card image cap

Nebius leverages Microsoft, Meta contracts for AI expansion 

Dec -03

Source:

Card image cap

Siemens (XTRA:SIE) Valuation Check After Recent 7% Pullback and Strong Five-Year Shareholder Returns

Dec -03

Source:

Card image cap

Siemens USA Commits to Train 200,000 Electricians and Manufacturing Experts by 2030

Dec -02

Source:

Card image cap

Siemens Mobility lands ETCS Level 2 contract for Chilean rail digitalisation

Nov -28

Source:

Card image cap

North America Power Quality Equipment Market Forecast and Company Analysis Report 2025-2033 Featuring Hitachi, Siemens, EATON, Emerson Electric, Schneider Electric, GE, Toshiba, Schaffner

Nov -28

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.50%)

6. Segments

Industrial Businesses (IB) - Siemens Healthineers

Expected Growth: 7.0%

The healthcare industry is expected to experience significant growth due to aging populations and increasing healthcare needs. Siemens Healthineers is well-positioned to capitalize on this trend, with a strong presence in key markets and a commitment to innovation. The segment's growth is expected to be driven by the increasing demand for diagnostic and therapeutic products.

Industrial Businesses (IB) - Smart Infrastructure

Expected Growth: 6.8%

The demand for smart infrastructure is expected to drive growth in this segment, as cities and buildings become increasingly connected and automated. Siemens is well-positioned to capitalize on this trend, with a strong portfolio of products and services. The segment's growth is expected to be driven by the increasing need for energy efficiency and the adoption of smart technologies.

Industrial Businesses (IB) - Digital Industries

Expected Growth: 8.0%

The demand for digitalization is expected to drive growth in this segment, as manufacturers increasingly adopt Industry 4.0 technologies. Siemens is well-positioned to capitalize on this trend, with a strong portfolio of products and services. The segment's growth is expected to be driven by the increasing need for industrial automation and the adoption of digital technologies.

Industrial Businesses (IB) - Mobility

Expected Growth: 6.2%

The demand for transportation infrastructure is expected to drive growth in this segment, as governments and cities invest in sustainable mobility solutions. Siemens is well-positioned to capitalize on this trend, with a strong portfolio of products and services. The segment's growth is expected to be driven by the increasing need for sustainable transportation systems.

Reconciliation Consolidated Financial Statements

Expected Growth: 0.0%

This segment is not expected to contribute to revenue growth, as it is primarily focused on financial reporting and reconciliation. The growth rate is expected to be minimal, as the segment is not directly related to the company's operational activities.

Siemens Financial Services (SFS)

Expected Growth: 6.5%

The demand for financial services is expected to drive growth in this segment, as industrial customers increasingly require financing options for projects. Siemens is well-positioned to capitalize on this trend, with a strong portfolio of financial products and services. The segment's growth is expected to be driven by the increasing need for financing options for industrial customers.

7. Detailed Products

Industrial Automation

Siemens' industrial automation products and solutions enable the efficient and flexible automation of manufacturing processes, including industrial control systems, industrial communication networks, and industrial software.

Drive Technology

Siemens' drive technology products and solutions provide efficient and reliable electric drives, motors, and gear units for industrial applications.

Digital Grid

Siemens' digital grid products and solutions enable the efficient and reliable transmission and distribution of electrical energy, including smart grid systems and energy storage solutions.

Industrial Software

Siemens' industrial software products and solutions provide a range of tools for product design, simulation, and manufacturing, including computer-aided design (CAD) and product lifecycle management (PLM) software.

Mobility

Siemens' mobility products and solutions provide rail and road transportation systems, including rail electrification, signaling, and train control systems.

Healthineers

Siemens Healthineers provides medical imaging and diagnostics equipment, including MRI and CT scanners, as well as healthcare IT solutions.

Gas and Power

Siemens' gas and power products and solutions provide efficient and reliable power generation, transmission, and distribution systems, including gas turbines and generators.

8. Siemens Aktiengesellschaft's Porter Forces

Forces Ranking

Threat Of Substitutes

Siemens Aktiengesellschaft operates in a industry with moderate threat of substitutes. While there are some substitutes available, they are not a significant threat to the company's business.

Bargaining Power Of Customers

Siemens Aktiengesellschaft has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often customized, making it difficult for customers to switch to competitors.

Bargaining Power Of Suppliers

Siemens Aktiengesellschaft has a large and diverse supplier base, which reduces the bargaining power of individual suppliers. However, some suppliers may have significant bargaining power due to their size or specialized products.

Threat Of New Entrants

The capital requirements and regulatory barriers to entry in Siemens Aktiengesellschaft's industries are high, making it difficult for new entrants to enter the market.

Intensity Of Rivalry

Siemens Aktiengesellschaft operates in highly competitive industries, with many established players competing for market share. The company must continuously innovate and improve its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.37%
Debt Cost 3.95%
Equity Weight 50.63%
Equity Cost 10.22%
WACC 7.12%
Leverage 97.50%

11. Quality Control: Siemens Aktiengesellschaft passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Siemens

A-Score: 5.5/10

Value: 3.6

Growth: 5.0

Quality: 5.6

Yield: 5.0

Momentum: 7.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Alfa Laval

A-Score: 5.4/10

Value: 2.7

Growth: 6.9

Quality: 6.8

Yield: 3.8

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Schindler

A-Score: 5.3/10

Value: 1.1

Growth: 3.9

Quality: 7.2

Yield: 3.1

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Eaton

A-Score: 4.5/10

Value: 0.7

Growth: 5.9

Quality: 6.9

Yield: 2.5

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
KONE

A-Score: 4.3/10

Value: 1.8

Growth: 3.3

Quality: 6.4

Yield: 5.6

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Schneider Electric

A-Score: 4.3/10

Value: 1.3

Growth: 5.6

Quality: 6.3

Yield: 2.5

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

233.45$

Current Price

233.45$

Potential

-0.00%

Expected Cash-Flows