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1. Company Snapshot

1.a. Company Description

Siemens Healthineers AG, through its subsidiaries, develops, manufactures, and sells a range of diagnostic and therapeutic products and services to healthcare providers worldwide.The company operates through four segments: Imaging, Diagnostics, Varian, and Advanced Therapies.The Imaging segment provides magnetic resonance imaging, computed tomography, X-ray systems, molecular imaging, and ultrasound systems.


The Diagnostics segment offers in-vitro diagnostic products and services to healthcare providers in laboratory, molecular and point-of-care diagnostics; and workflow solutions for laboratories and informatics products.The Varian segment provides cancer care technologies, and solutions and services to oncology departments in hospitals and clinics; and technology-enabled optimized workflows, clinical services and consulting capabilities, and digital solutions and applications for managing treatment and therapy.The Advanced Therapies segment offers products that are designed to support image-guided minimally invasive treatments in various areas, such as cardiology, interventional radiology, and surgery; and angiography systems and mobile C-arms, including a robotic-assisted platform for endovascular coronary and peripheral vascular interventions.


It also provides equipment performance management, clinical education and e-learning, asset management, and managed departmental services for laboratories and healthcare facilities, as well as consulting and digital health services.The company is headquartered in Erlangen, Germany.Siemens Healthineers AG operates as a subsidiary of Siemens Aktiengesellschaft.

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1.b. Last Insights on SHL

Siemens Healthineers' recent performance was negatively impacted by a fall in profits, primarily due to the hit from U.S. tariffs. The company's comparable revenue growth was offset by tariff impacts, which are expected to double. Additionally, market challenges in China and a modest dip in share price earlier this year affected performance. Despite steady revenue growth and strategic advancements, the company's profit decline and tariff concerns are key short-term concerns. The recent earnings call highlighted these challenges.

1.c. Company Highlights

2. Siemens Healthineers' FY25 Results: A Strong Close with Cautious Outlook

Siemens Healthineers closed fiscal year '25 with a solid quarter, achieving revenue growth across all regions except China. The company's adjusted EPS came in at EUR 0.694, slightly below estimates of EUR 0.701. Revenue growth was fueled by healthy global demand and the company's leading market position, reflected in a book-to-bill ratio of 1.14 for FY25. The Imaging segment drove growth, with an 8.5% increase in revenue, thanks to strong performances from Photon Counting CT and Molecular Imaging.

Publication Date: Nov -06

📋 Highlights
  • Fiscal Year 2025 Growth:: Achieved upper end of growth outlook with 8% revenue increase in Imaging, Varian, and Advanced Therapies, driven by a 1.14 book-to-bill ratio.
  • Adjusted EPS Performance:: Exceeded upper half of guidance; excluding tariffs, EPS would surpass initial November 2024 targets, with a proposed dividend hike to EUR 1.
  • 2026 Guidance:: Projects 5-6% revenue growth but adjusted EPS of EUR 2.20-2.40 due to macro challenges like tariffs and a strong euro, with Imaging expected to lead at 8.5% growth.
  • Diagnostics Turnaround:: Transformed margins from negative to high single digits amid volume-based procurement pressures, maintaining a 350-basis-point EBIT margin headwind in Q4 2025.
  • Tariff Mitigation Strategy:: Anticipates peak tariff impact in 2026, with smart pricing and cost controls to reduce effects annually, aiming for full mitigation by 2028.

Segment Performance

The company's segments performed well, with Imaging, Varian, and Advanced Therapies increasing revenue by almost 8%. Imaging's adjusted EBIT margin faced headwinds from tariffs, unfavorable business mix, and negative impacts from special items. Varian's growth trajectory is expected to continue in the high single digits, while Advanced Therapies is expected to grow within mid-single digits.

Outlook and Guidance

For FY26, Siemens Healthineers expects comparable revenue growth of 5% to 6%, with adjusted EPS between EUR 2.20 and EUR 2.40. The company is cautious about the impact of tariffs and a strong euro on earnings growth. The Diagnostics segment is expected to be flattish due to the annualizing of volume-based procurement in 2026. The company's CFO highlighted that the impacts from tariffs are expected to become less significant over time, with full mitigation expected in the medium term.

Valuation and Metrics

With a P/E Ratio of 23.23 and an EV/EBITDA of 13.58, Siemens Healthineers' valuation suggests that the market is pricing in moderate growth expectations. The Dividend Yield of 2.12% and Free Cash Flow Yield of 5.22% indicate a relatively attractive return profile. The company's ROIC of 7.86% and ROE of 11.69% suggest a decent return on capital, although there is room for improvement.

China Market Dynamics

Siemens Healthineers is cautious about the China market, where revenue declined in FY25. The company has maintained its market share, but sees changes in competitive dynamics, with local competitors gaining share. Despite this, the company's scale and local presence in China are expected to help it maintain its position in the future.

Tariff Mitigation and Cost Control

The company is implementing smart pricing and tight cost control measures to mitigate the impact of tariffs. These efforts are expected to have a more pronounced impact in 2027 and 2028. The company's CFO highlighted that shifting manufacturing is a major decision that requires careful consideration.

3. NewsRoom

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Siemens Healthineers introduces new AI CCTA analysis software

Dec -03

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Are Shares of Siemens Healthineers Attractive After 16.8% Slide and New Digital Health Focus?

Dec -02

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Akumin Expands Akumin AXIS™ Line with New 1.5T MRI and Akumin AXIS Drop Trailer

Dec -01

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Stratasys completes US rollout of 3D-printed imaging support material

Dec -01

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Stratasys Expands Availability of RadioMatrix™ Radiopaque Material to the United States

Dec -01

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Pediatric Interventional Cardiology Market Competitive Landscape Report 2025: Recent Developments, Strategies, Sustainability Benchmarking, Product Analysis, Key Persons and Revenue

Nov -26

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Autoimmune Disease Diagnostics Market Competitive Landscape Report 2025: Recent Developments, Company Strategies, Sustainability Benchmarking, Product Launches, Key Persons, and Revenue Forecasts

Nov -24

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Siemens Healthineers (XTRA:SHL): Exploring Valuation After Recent Share Price Decline

Nov -20

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.20%)

6. Segments

Imaging

Expected Growth: 7.0%

The Imaging segment is expected to grow at a rate higher than the global average due to the continuous advancements in imaging technologies and the increasing demand for diagnostic procedures. The aging population and the rising incidence of chronic diseases further contribute to this growth.

Diagnostics

Expected Growth: 6.0%

The Diagnostics segment is anticipated to grow at a rate slightly below the global average. While there is a steady demand for diagnostic services, the growth is somewhat tempered by the maturity of certain diagnostic technologies and the competitive landscape.

Varian

Expected Growth: 8.0%

The Varian segment is expected to experience significant growth due to the increasing prevalence of cancer and the need for advanced radiation therapy solutions. The integration of Varian's technologies with Siemens Healthineers' existing portfolio is also expected to drive growth.

Advanced Therapies

Expected Growth: 5.0%

The Advanced Therapies segment is expected to grow, albeit at a slightly lower rate than the global average. While there is a strong demand for minimally invasive treatments, the segment faces challenges related to the complexity of these therapies and the need for specialized training for healthcare professionals.

Reconciliation to Consolidated Financial Statements

Expected Growth: None%

None

7. Detailed Products

Magnetic Resonance Imaging (MRI) Systems

Siemens Healthineers' MRI systems provide high-quality images for accurate diagnosis and treatment of various medical conditions.

Computed Tomography (CT) Scanners

Siemens Healthineers' CT scanners offer high-speed, low-dose imaging for precise diagnosis and treatment planning.

X-ray Systems

Siemens Healthineers' X-ray systems provide high-quality digital imaging for accurate diagnosis and treatment of various medical conditions.

Ultrasound Systems

Siemens Healthineers' ultrasound systems offer high-resolution imaging for accurate diagnosis and treatment of various medical conditions.

Molecular Imaging

Siemens Healthineers' molecular imaging solutions provide precise visualization of biological processes for accurate diagnosis and treatment.

Laboratory Diagnostics

Siemens Healthineers' laboratory diagnostics solutions provide accurate and efficient testing for various medical conditions.

Point of Care Testing

Siemens Healthineers' point of care testing solutions provide rapid and accurate testing at the bedside or in the clinic.

Enterprise Imaging

Siemens Healthineers' enterprise imaging solutions provide a unified platform for image management and analysis.

Artificial Intelligence (AI) and Analytics

Siemens Healthineers' AI and analytics solutions provide insights and automation for improved clinical decision-making and operational efficiency.

Digital Health

Siemens Healthineers' digital health solutions provide a range of digital tools and services for healthcare providers and patients.

8. Siemens Healthineers AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Siemens Healthineers AG is low due to the company's strong brand recognition and customer loyalty in the healthcare industry.

Bargaining Power Of Customers

The bargaining power of customers for Siemens Healthineers AG is medium due to the presence of large hospital chains and healthcare providers, but the company's diversified product portfolio and strong relationships with customers mitigate this power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Siemens Healthineers AG is low due to the company's large scale and diversified supply chain, which reduces dependence on individual suppliers.

Threat Of New Entrants

The threat of new entrants for Siemens Healthineers AG is low due to the high barriers to entry in the healthcare industry, including regulatory hurdles and the need for significant investments in research and development.

Intensity Of Rivalry

The intensity of rivalry for Siemens Healthineers AG is high due to the presence of established competitors such as GE Healthcare and Philips Healthcare, and the need for continuous innovation and investment in research and development to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.38%
Debt Cost 7.60%
Equity Weight 96.62%
Equity Cost 7.60%
WACC 7.60%
Leverage 3.50%

11. Quality Control: Siemens Healthineers AG passed 3 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

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Drägerwerk

A-Score: 5.7/10

Value: 7.7

Growth: 3.3

Quality: 4.8

Yield: 3.8

Momentum: 9.5

Volatility: 5.3

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AstraZeneca

A-Score: 5.5/10

Value: 2.0

Growth: 7.6

Quality: 6.9

Yield: 3.1

Momentum: 6.5

Volatility: 7.0

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Stryker

A-Score: 5.3/10

Value: 1.8

Growth: 6.4

Quality: 6.7

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

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STERIS

A-Score: 5.2/10

Value: 2.0

Growth: 6.6

Quality: 6.5

Yield: 1.2

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Siemens Healthineers

A-Score: 4.6/10

Value: 3.1

Growth: 4.3

Quality: 5.5

Yield: 3.1

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

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Philips

A-Score: 3.5/10

Value: 2.4

Growth: 1.7

Quality: 2.9

Yield: 6.9

Momentum: 1.5

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.51$

Current Price

43.51$

Potential

-0.00%

Expected Cash-Flows