One-glance verdict
Within fair range
$19.09 our estimate vs market $23.81
Wall Street consensus: $24.10 (26.2% higher than our fair-value estimate)
25% above our estimate
Fundamentals snapshot
Siemens Healthineers AG
SMMNY · PNK · Healthcare · Medical Devices
Current price
$23.81
52-week range
$19.20 - $28.43
Market cap
$53.30B
Balance sheet
Watch
5.90x Adequate
Net debt $14.14B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.2% last year.
- Reward Returns 12.1% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 0.0% (peer median: 0.3%).
What this company does
Siemens Healthineers AG
Siemens Healthineers AG makes and sells medical equipment like MRI and CT scanners, and also provides services to hospitals and labs. A big chunk of their money comes from selling these complex machines and also from ongoing services and supplies, which helps them maintain steady earnings (recurring revenue, meaning money that comes in regularly). This business is important because it helps doctors diagnose and treat illnesses, ultimately impacting patient care.
How the company got here
Siemens Healthineers has a long history, with roots tracing back to 1847 as part of the larger Siemens AG conglomerate. Initially focused on telegraphy and electrical equipment, the company gradually shifted its focus to medical technology. A key moment was the development and production of early X-ray tubes in the late 19th century, shortly after the discovery of X-rays. Over the decades, through mergers and acquisitions, including key players in laboratory diagnostics, Siemens Healthineers grew its expertise and product offerings. It was officially spun off as an independent company from Siemens AG in 2017, allowing it to focus more strategically on the healthcare sector.
What it actually does
Siemens Healthineers is a major player in the medical technology industry, creating products and services that help doctors and hospitals diagnose and treat illnesses. Think of the advanced machines you see in hospitals for scans like MRIs and CTs, or the equipment used in labs to analyze blood and other samples. They also provide tools for more complex treatments, especially in areas like cancer care. Essentially, they equip healthcare providers with the technology needed to understand what's happening inside a patient's body and to deliver targeted therapies.
Imaging
This is one of the company's largest areas, focusing on the machines that create detailed pictures of the inside of the human body. This includes technologies like Magnetic Resonance Imaging (MRI), Computed Tomography (CT) scanners, X-ray machines, and ultrasound devices. These tools are crucial for doctors to see organs, bones, and tissues, helping them diagnose a wide range of conditions, from broken bones to tumors. Hospitals and diagnostic centers are the main customers for these high-tech imaging systems.
Diagnostics
This segment is all about the tests performed in laboratories to understand a patient's health. It covers 'in-vitro diagnostics,' which means tests done on samples like blood or urine outside the body. Siemens Healthineers provides the equipment and the chemical tests (called assays) used in labs to detect diseases, monitor conditions, and check for various health markers. This business serves hospitals, independent laboratories, and even smaller clinics, helping them get accurate results for everything from routine blood counts to complex genetic testing.
Varian
This part of the company is dedicated to cancer care, specifically focusing on radiation therapy. Varian offers advanced technologies and services that help oncologists (cancer doctors) deliver precise radiation treatments to tumors while minimizing damage to surrounding healthy tissue. This includes equipment like linear accelerators and software for treatment planning. Hospitals and cancer treatment centers are the primary users of these specialized oncology solutions.
Advanced Therapies
This segment provides sophisticated equipment for minimally invasive procedures, meaning surgeries or treatments that require smaller incisions. Think of tools used in cardiology (heart care), neurology (brain and nerve care), and oncology. These systems often combine imaging technology with robotic or guided instruments, allowing doctors to perform complex interventions with greater precision. Hospitals and specialized medical centers that perform these types of procedures are the main customers.
What management is betting on now
Siemens Healthineers is focusing on combating major non-communicable diseases like cancer and cardiovascular conditions by integrating its imaging and therapy technologies. A key strategy is expanding 'Value Partnerships,' which are long-term service contracts that embed the company deeply within hospital operations, ensuring stable, recurring revenue. They are also heavily investing in artificial intelligence (AI) to create personalized patient models and digital tools to improve healthcare efficiency. Furthermore, the company is working to scale its 'managed departmental services' to help healthcare facilities cope with staff shortages.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $19.09 vs current price $23.81
Wall Street consensus is the average analyst price target: $24.10 (26.2% higher than our fair-value estimate).
Our most-likely fair value is $19.09 a share — about 19.8% away from today's price of $23.81, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $14.1B. Interest coverage 5.9x.
Net debt
$14.14B
Interest coverage
5.90x
Siemens Healthineers AG's profit covers its interest bill about 5.9 times over.
Watch
Worse cushion
Baseline
Better cushion
SMMNY
BASELINE
Siemens Healthineers AG
Total debt $16.78B Interest coverage 5.90x This is the baseline the peer rows are being compared against.
Total debt $10.41B Interest coverage 6.28x +6% vs SMMNY Has roughly the same debt cushion as SMMNY.
Total debt $16.81B Interest coverage 4.87x -17% vs SMMNY Carries about 1.2x less debt cushion than SMMNY.
Total debt $704.40M Interest coverage 80.21x +1,259% vs SMMNY Carries about 13.6x more debt cushion than SMMNY.
Total debt $4.15B Interest coverage 13.21x +124% vs SMMNY Carries about 2.2x more debt cushion than SMMNY.
Total debt $12.62B Interest coverage 11.38x +93% vs SMMNY Carries about 1.9x more debt cushion than SMMNY.
What you should know
The case for and against SMMNY
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.2% last year.
-
Returns 12.1% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Insider ownership is only 0.0% (peer median: 0.3%).
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)
20.70x
Forward P/E
18.00x
P/B
2.47x
P/S
2.30x
EV/EBITDA
16.36x
PEG ratio
1.95x
Profitability
How much profit each dollar creates
Gross margin
39.0%
Operating margin
16.4%
Net margin
9.6%
ROE
12.1%
ROA
4.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.78x
Current ratio
1.16x
Quick ratio
0.70x
Total debt
$16.78B
Total cash
$2.64B
Growth
How the business has been compounding
Revenue TTM
$25.91B
Revenue 5Y CAGR
1.5%
EPS TTM
1.15
EPS 5Y CAGR
-2.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.16B
Free CF TTM
$2.38B
FCF margin
9.2%
Dividend
Shareholder payout
Yield
2.5%
Payout ratio
52.3%
Last ex-div date
2026-02-09