One-glance verdict
Overvalued
$97.01 our estimate vs market $162.56
68% above our estimate, beyond the bull case
Fundamentals snapshot
Siemens Energy AG
SMEGF · OQX · Industrials · Specialty Industrial Machinery
Current price
$162.56
52-week range
$108.00 - $223.95
Market cap
$138.32B
Balance sheet
Healthy
5.35x Adequate
Net cash $9.11B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 13.4% last year.
- Reward Returns 27.7% on equity, ahead of 25% of its peers.
- Reward Free cash flow was positive in 4/10 years.
What this company does
Siemens Energy AG
Siemens Energy AG is a global company that makes and services big equipment for generating and distributing electricity, like turbines and wind farm technology. Their money primarily comes from selling these complex systems and providing ongoing services to keep them running. This business matters because it helps power homes and industries worldwide, and its success relies on reliably delivering these essential energy solutions.
How the company got here
Siemens Energy AG was officially formed in April 2020, emerging from the Gas and Power division of the larger Siemens AG conglomerate. While the company is relatively new as an independent entity, its roots stretch back to 1847 with the founding of Siemens & Halske, a company that pioneered early electrical engineering and power generation technologies. Key milestones include the development of the dynamo-electric principle in 1866 and the construction of South Africa's first power plant in 1895. Over the decades, Siemens expanded its energy offerings, including gas turbines and a significant entry into the wind energy market in 2004. The spin-off in 2020 aimed to create a more focused energy technology company, allowing it to strategically pursue growth in both conventional and renewable energy sectors.
What it actually does
Siemens Energy is a global energy technology company that provides a wide range of products and services across the entire energy value chain. This includes everything from generating power using various technologies to transmitting and distributing that electricity. They also offer solutions for storing energy and for making industrial processes more efficient and less polluting. Essentially, they help power the world, from large utility companies to industrial manufacturers, with a focus on making energy more sustainable, reliable, and affordable.
Gas Services
The Gas Services segment is a major contributor to Siemens Energy's revenue, focusing on the lifecycle of gas turbines. This includes manufacturing, servicing, and upgrading gas and steam turbines, as well as generators and heat pumps used in power generation. They provide crucial services like performance enhancement, maintenance, and digitalization solutions to ensure these power generation assets operate efficiently and reliably. This segment is vital for both traditional power generation and for supporting the transition to cleaner energy sources by enabling more flexible and efficient use of gas.
Grid Technologies
This segment is all about ensuring electricity can be reliably transmitted and distributed from where it's generated to where it's needed. Siemens Energy offers a comprehensive suite of products and services for power transmission and distribution, including high-voltage direct current (HVDC) systems, transformers, and switchgear. They also provide digital grid solutions that help monitor, manage, and optimize the flow of electricity, making the grid more resilient and efficient. This is crucial for integrating renewable energy sources, which can sometimes be intermittent, and for meeting growing energy demands.
Transformation of Industry
Siemens Energy's 'Transformation of Industry' segment focuses on decarbonizing industrial processes and electrifying complex industrial applications. This involves providing solutions like electrolyzers for producing green hydrogen, industrial steam and gas turbines, compressors, and drive systems. The goal is to help heavy industries, such as chemicals, manufacturing, and oil and gas, reduce their carbon footprint and improve their energy efficiency. This segment is key to supporting the global shift towards more sustainable industrial operations.
Siemens Gamesa
Siemens Gamesa is Siemens Energy's dedicated renewable energy business, with a primary focus on wind power. It designs, manufactures, and installs onshore and offshore wind turbines, and also provides services for wind farm operations and maintenance. This segment is a critical part of Siemens Energy's strategy to lead in the renewable energy market and contribute to the global energy transition. Despite facing some quality challenges in recent years, it remains a significant part of the company's overall portfolio.
What management is betting on now
Siemens Energy's current strategy is heavily focused on driving the global energy transition towards more sustainable and reliable energy systems. A key priority is stabilizing and improving the performance of its Siemens Gamesa wind energy division, which has faced recent quality issues. Management is also investing in expanding its Grid Technologies business to address growing demand for robust and efficient electricity grids. Furthermore, the company is prioritizing innovation in areas like green hydrogen production and industrial decarbonization, aiming to be a comprehensive partner for customers reducing their carbon emissions and enhancing energy efficiency.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $97.01 vs current price $162.56
Our most-likely fair value is $97.01 a share — about 40.3% below today's price of $162.56, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $9.1B - more cash than debt. Interest coverage 5.4x.
Net debt
$-9.11B
Interest coverage
5.35x
Siemens Energy AG's profit covers its interest bill about 5.4 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
SMEGF
BASELINE
Siemens Energy AG
Total debt $3.32B Interest coverage 5.35x This is the baseline the peer rows are being compared against.
Total debt $20.23B Interest coverage 10.30x +92% vs SMEGF Carries about 1.9x more debt cushion than SMEGF.
Total debt $34.96B Interest coverage 4.89x -9% vs SMEGF Has roughly the same debt cushion as SMEGF.
Total debt $3.26B Interest coverage 12.51x +134% vs SMEGF Carries about 2.3x more debt cushion than SMEGF.
What you should know
The case for and against SMEGF
3 Rewards
0 Risks
Rewards
-
Revenue grew 13.4% last year.
-
Returns 27.7% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
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)
44.91x
Forward P/E
—
P/B
11.07x
P/S
3.31x
EV/EBITDA
28.29x
PEG ratio
0.40x
Profitability
How much profit each dollar creates
Gross margin
20.8%
Operating margin
13.0%
Net margin
6.4%
ROE
27.7%
ROA
3.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.26x
Current ratio
0.90x
Quick ratio
0.57x
Total debt
$3.32B
Total cash
$12.42B
Growth
How the business has been compounding
Revenue TTM
$46.89B
Revenue 5Y CAGR
10.4%
EPS TTM
3.62
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$6.52B
Free CF TTM
$4.59B
FCF margin
9.8%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
22.7%
Last ex-div date
2026-02-27