One-glance verdict
Overvalued
$115.69 our estimate vs market $151.91
Wall Street consensus: $171.00 (47.8% higher than our fair-value estimate)
31% above our estimate, beyond the bull case
Fundamentals snapshot
Siemens Aktiengesellschaft
SIEGY · PNK · Industrials · Specialty Industrial Machinery
Current price
$151.91
52-week range
$115.56 - $163.00
Market cap
$233.68B
Balance sheet
Watch
5.54x Adequate
Net debt $52.06B. 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 Returns 12.6% on equity, ahead of 16% of its peers.
- Risk Stock trades 42.5% 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 giant German engineering company that builds the complex "behind-the-scenes" technology that powers modern factories, transportation systems, and power grids. The company makes money by selling essential equipment, software, and services like high-speed trains and medical scanners to large corporations and governments worldwide. Because its products are fundamental to a country's infrastructure, its business often depends on long-term spending by major industries and governments.
How the company got here
Siemens began in 1847 in a Berlin courtyard, founded by Werner von Siemens and Johann Georg Halske to build a better telegraph. The company quickly expanded by taking on major projects, like building Europe's first long-distance telegraph line and a massive network in Russia. Over the next century, it grew into a global giant by pioneering everything from electric trains and power generators to computers and medical devices. More recently, Siemens has focused its strategy, spinning off its energy business and separately listing its healthcare division to concentrate on combining the physical and digital worlds in industry, buildings, and transportation.
What it actually does
Siemens is a technology company that you don't typically see in a shopping mall, but its products are all around you. It creates the 'brains' and systems that run factories, make buildings smarter and more efficient, and power modern train networks. Think of it as a company that builds the complex technology behind the scenes—from the automation that helps a car factory run smoothly to the software that manages a city's power grid or the medical scanners in a hospital. Essentially, Siemens helps other large organizations (its customers) make their operations more digital, efficient, and sustainable.
Digital Industries
This is Siemens' automation and software business, which acts like the nerve center for factories and manufacturing plants. It sells things like automation systems, motors, and highly advanced software that companies use to design, simulate, and manage their entire production process. For example, a carmaker might use Siemens software to create a 'digital twin' (a virtual copy) of a new car and the factory that will build it, allowing them to test everything on a computer before spending money on physical materials. This segment is a core part of the company and a leader in the industrial software market.
Smart Infrastructure
This division focuses on making buildings and power grids intelligent and sustainable. It provides everything from the electrical products in a building, like switchgear (the equipment that distributes power), to complex software that manages a building's heating, cooling, and security systems. Customers are building owners, grid operators, and industrial facilities who pay for these systems to make their operations more energy-efficient, reliable, and safe. This segment is a significant part of Siemens' business, connecting energy systems with the places people live and work.
Mobility
This is Siemens' train and transportation business, a global leader in the rail industry. It builds everything from high-speed trains, commuter and subway cars, and locomotives to the signaling and control systems that allow trains to run safely and efficiently. The customers are typically governments and private transportation operators who buy not just the trains themselves but also long-term service and maintenance contracts. This segment is a major business for Siemens, focused on making rail travel more sustainable and reliable.
Siemens Healthineers
This is a separately managed but majority-owned company that is a major player in the healthcare technology world. It develops, manufactures, and sells medical imaging equipment that hospitals and clinics use, such as MRI and CT scanners, X-ray machines, and ultrasound devices. It also provides laboratory diagnostic equipment that automates the testing of blood and tissue samples. Hospitals and healthcare providers are the main customers, paying for this high-tech equipment to diagnose and treat patients more effectively.
What management is betting on now
Siemens' main bet is on combining the real and digital worlds to help its customers become more efficient and sustainable. A key part of this is Siemens Xcelerator, an open digital platform that makes it easier for customers to use its software and hardware together. The company is also heavily investing in industrial Artificial Intelligence (AI) to make factories smarter and transportation networks more predictive. By focusing on digitalization and sustainability, management aims to grow in markets like smart grids, factory automation, and modern rail systems.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $115.69 vs current price $151.91
Wall Street consensus is the average analyst price target: $171.00 (47.8% higher than our fair-value estimate).
Our most-likely fair value is $115.69 a share — about 23.8% below today's price of $151.91, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $52.1B. Interest coverage 5.5x.
Net debt
$52.06B
Interest coverage
5.54x
Siemens Aktiengesellschaft's profit covers its interest bill about 5.5 times over.
Watch
Worse cushion
Baseline
Better cushion
SIEGY
BASELINE
Siemens Aktiengesellschaft
Total debt $61.98B Interest coverage 5.54x This is the baseline the peer rows are being compared against.
Total debt $19.16B Interest coverage 10.30x +86% vs SIEGY Carries about 1.9x more debt cushion than SIEGY.
Total debt $37.75B Interest coverage 4.89x -12% vs SIEGY Has roughly the same debt cushion as SIEGY.
Total debt $21.83B Interest coverage 21.61x +290% vs SIEGY Carries about 3.9x more debt cushion than SIEGY.
Total debt $14.06B Interest coverage 9.13x +65% vs SIEGY Carries about 1.6x more debt cushion than SIEGY.
Total debt $22.78B Interest coverage 12.98x +134% vs SIEGY Carries about 2.3x 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.
-
Returns 12.6% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 42.5% 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)
27.62x
Forward P/E
22.73x
P/B
3.21x
P/S
2.93x
EV/EBITDA
24.67x
PEG ratio
5.36x
Profitability
How much profit each dollar creates
Gross margin
38.8%
Operating margin
12.7%
Net margin
9.7%
ROE
12.6%
ROA
3.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.76x
Current ratio
1.39x
Quick ratio
0.74x
Total debt
$61.98B
Total cash
$9.91B
Growth
How the business has been compounding
Revenue TTM
$91.20B
Revenue 5Y CAGR
3.1%
EPS TTM
5.50
EPS 5Y CAGR
38.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$15.17B
Free CF TTM
$12.37B
FCF margin
13.6%
Dividend
Shareholder payout
Yield
2.1%
Payout ratio
55.4%
Last ex-div date
2026-02-13