One-glance verdict
Within fair range
$130.32 our estimate vs market $150.07
Wall Street consensus: $179.35 (37.6% higher than our fair-value estimate)
15% above our estimate
Fundamentals snapshot
Siemens Aktiengesellschaft
SIEGY · PNK · Industrials · Specialty Industrial Machinery
Current price
$150.07
52-week range
$115.56 - $169.47
Market cap
$229.75B
Balance sheet
Watch
5.54x Adequate
Net debt $43.84B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.9% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 32.8% above its 5-year average P/E.
- Risk Net debt grew 4.5% over 3 years.
What this company does
Siemens Aktiengesellschaft
Siemens is a massive German technology company that builds the "behind-the-scenes" equipment and software that modern society relies on. It makes money by selling a huge range of products, from factory automation systems and high-speed trains to smart building technology and MRI machines for hospitals. Because its business is spread across so many essential sectors like manufacturing, infrastructure, and healthcare, its success is often linked to the overall health of the global economy.
How the company got here
Founded in Berlin in 1847 by Werner von Siemens, the company started by building long-distance telegraph lines in Europe. It quickly grew into a global pioneer in electrical engineering, contributing to railroads, power supply, and industrial automation. Over its long history, Siemens has evolved by entering new markets and spinning off major businesses, like its former chip division Infineon and Siemens Energy, to focus on its core strengths. A key moment was the 1966 merger of three of its businesses to form the modern Siemens AG. Today, it is a global technology giant focused on combining the real and digital worlds in industry, infrastructure, and transportation.
What it actually does
Siemens is a technology company that builds many of the systems that run our modern world, from factory automation to smart buildings and trains. You might not buy their products directly, but they are behind the scenes making things work. For example, they create the software and hardware that automate production lines in factories, develop the technology for smart electrical grids that manage power in cities, and build trains and the signaling systems that control them. They also have a major healthcare business that makes medical imaging equipment like MRI and CT scanners.
Digital Industries
This is Siemens' automation and software business, which helps factories become more digital and efficient. Customers in industries like automotive and aerospace pay for software and automated systems that help them design, simulate, and manufacture products. This segment is a strategic priority because it combines hardware with high-value software, helping companies create a 'digital twin' (a virtual model of a product or process) to test and improve things before they are built in the real world. This part of the company is a significant contributor to Siemens' overall business.
Smart Infrastructure
This segment focuses on making buildings and energy systems intelligent and sustainable. It provides everything from building automation and fire safety systems to electrical grids and power distribution products. Customers like building owners, utilities, and data centers pay for these technologies to make their infrastructure more efficient and resilient. This is a large and growing part of Siemens, representing about a quarter of its revenue, as the world moves toward electrification and smarter cities.
Mobility
This is Siemens' transportation business, primarily focused on rail. It builds trains, from high-speed and commuter trains to metros and trams, as well as the signaling and electrification systems that allow them to run safely and efficiently. Customers are typically public and state-owned transportation companies who invest in large infrastructure projects. This segment also provides maintenance and digital services to keep transportation networks running smoothly.
Siemens Healthineers
This is a separate, publicly-traded company in which Siemens holds a majority stake. It is a leading medical technology company that develops and sells diagnostic and therapeutic products and services. Hospitals and healthcare providers are the main customers, purchasing things like MRI scanners, CT scanners, and equipment for laboratory diagnostics and cancer therapy. This is the largest single segment by revenue for Siemens.
What management is betting on now
Siemens is heavily focused on digitalization, which means helping its customers use technology and data to improve their operations. A key part of this strategy is their open digital business platform, Siemens Xcelerator, which helps connect their hardware and software with a powerful ecosystem of partners. The company is also investing heavily in artificial intelligence (AI) to make factories, grids, and transportation networks smarter and more efficient. Another major focus is sustainability, providing technologies that help customers reduce their carbon emissions and use resources more efficiently.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $130.32 vs current price $150.07
Wall Street consensus is the average analyst price target: $179.35 (37.6% higher than our fair-value estimate).
Our most-likely fair value is $130.32 a share — about 13.2% away from today's price of $150.07, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $43.8B. Interest coverage 5.5x.
Net debt
$43.84B
Interest coverage
5.54x
Siemens Aktiengesellschaft's profit covers its interest bill about 5.5 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
SIEGY
BASELINE
Siemens Aktiengesellschaft
Total debt $56.13B Interest coverage 5.54x This is the baseline the peer rows are being compared against.
Total debt $20.23B Interest coverage 10.30x +86% vs SIEGY Carries about 1.9x more debt cushion than SIEGY.
Total debt $34.96B Interest coverage 4.89x -12% vs SIEGY Has roughly the same debt cushion as SIEGY.
Total debt $21.33B Interest coverage 21.61x +290% vs SIEGY Carries about 3.9x more debt cushion than SIEGY.
What you should know
The case for and against SIEGY
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.9% last year.
-
Free cash flow was positive in 4/10 years.
-
Trades at 25.7x P/E vs peer median 37.0x (30.4% cheaper).
Risks
-
Stock trades 32.8% above its 5-year average P/E.
-
Net debt grew 4.5% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
25.74x
Forward P/E
20.61x
P/B
3.03x
P/S
2.83x
EV/EBITDA
22.23x
PEG ratio
2.90x
Profitability
How much profit each dollar creates
Gross margin
39.4%
Operating margin
14.9%
Net margin
9.8%
ROE
12.5%
ROA
3.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.66x
Current ratio
1.44x
Quick ratio
0.88x
Total debt
$56.13B
Total cash
$12.29B
Growth
How the business has been compounding
Revenue TTM
$91.19B
Revenue 5Y CAGR
3.1%
EPS TTM
5.83
EPS 5Y CAGR
38.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$14.90B
Free CF TTM
$12.16B
FCF margin
13.3%
Dividend
Shareholder payout
Yield
2.1%
Payout ratio
55.0%
Last ex-div date
2026-02-13