The underlying tendency is to the upside for shares in Siemens Energy AG and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary
● The company's MSCI ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● For the past twelve months, EPS forecast has been revised upwards.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
Weaknesses
● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The company sustains low margins.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 72.44 times its estimated earnings per share for the ongoing year.
● The company's enterprise value to sales, at 2.33 times its current sales, is high.
● The company appears highly valued given the size of its balance sheet.
● The company is not the most generous with respect to shareholders' compensation.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
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Siemens Energy AG specialises in the development of solutions, products and services along the entire energy technology and service value chain. Net sales break down by activity as follows:
- development, maintenance, modernisation and optimisation of gas and steam turbines (30.9%). The group also offers compression systems, generators, centralised and decentralised electricity generation systems, electrical control systems, etc.;
- sale of high-voltage electricity transmission and distribution solutions and services (28.3%). In addition, the group offers technical consulting and electrical network maintenance services.
- design, construction, operation and maintenance of renewable energy production facilities (26.6%);
- development of industrial decarbonisation solutions (14.2%): in particular, electrification and energy efficiency solutions, and technological solutions for hydrogen production.
Net sales are distributed geographically as follows: Germany (9.7%), Europe/Middle East/Africa (43.2%), the United States (22.2%), America (8.4%), China (3.7%) and Asia and Australia (12.8%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
