SI  Siemens Ag

Exchange

NYSE

Sector

Energy

Industry

Consumer Electronics/Appliances

Market Cap.

112.2B

Vuru Grade

22.43/100

Current Price

$132.66
0.00 (0.00%)

Stability Price

$0.01
Overvalued by 100.00%

Company Metrics

  • P/E 17.65
  • P/S 1.08
  • P/B 2.91
  • EPS 7.515
  • Cash ROIC 80.62%
  • Cash Ratio 0.34
  • Dividend 7.149 / 5.39%
  • Avg. Vol. 450,674.00
  • Shares 36.72M
  • Market Cap. 112.2B

Company Description

Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the industry, energy, and healthcare sectors worldwide. In the industry sector, the company's portfolio ranges from industry automation and drives products and services to building, lighting, and mobility solutions and services, as well as includes system integration and solutions for plant business. It offe... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Can Siemens Beat Estimates This Year?
Seeking Alpha - Jan 29, 2017
Siemens AG (OTCPK:SIEGY) is a German conglomerate and multinational that is mostly active in industrial electronics. The company has a wide range of products in various industries such as Infrastructure, Healthcare, Industry and Energy.
70.19
MarketWatch - May 23, 2014
Siemens AG ADR. Siemens AG engages in the production and supply of systems for power generation, power transmission, and medical diagnosis.
Siemens AG-ADR (SI): New Analyst Report from Zacks Equity Research - Zacks ...
NASDAQ - Feb 3, 2014
Siemens AG is a German industrial conglomerate with interests in information services, automation and controls, medical equipment, power generation, transportation systems, automotive electronics, lighting, and many other areas.
Siemens, Like General Electric, Is Going After The Unstoppable
Seeking Alpha - Nov 15, 2016
Siemens just announced another acquisition in the industrial software industry, Mentor Graphics, which it will pay $4.5 billion for.
Why Shares of Mentor Graphics Are Up Today - Motley Fool
Siemens to Acquire Mentor Graphics: MENT Stock Soars by 19% - Profit Confidential
Siemens Spawns A Pureplay Medtech Giant
Seeking Alpha - Nov 11, 2016
Siemens' (OTCPK:SIEGY, OTCPK:SMAWF, OTC:SMQFY) healthcare unit is its largest by revenue with sales of $15bn. By spinning it off via a public listing, while retaining ownership of most of it, the conglomerate hopes to attract a higher valuation for the ...
Siemens Wants Its Software Behind Every Product, Every Industry
Seeking Alpha - Apr 25, 2017
Siemens has set its sights on generating more revenue and profits from software and services. Software acquisitions has given the company complete product lifecycle capabilities, from product design to end-of-life.
Siemens: An Alternative To GE
Seeking Alpha - Feb 6, 2017
There's a lot to like about General Electric (NYSE:GE) and the company has been on my watchlist for some time. It is undergoing a transition to prepare for a new industrial age, divesting from the highly volatile financial services exposure that caused ...
Siemens: A Look At Recent Quarterly Results
Seeking Alpha - Aug 10, 2016
Siemens ( OTCPK:SIEGY) just released fiscal third quarter results and they were ahead of expectations. Credit goes to cost discipline, strong execution and improved underlying business for the 20% increase in industrial profit, 9% order growth and 7 ...
Siemens: Long-Term Strategy Supports A Growing Dividend
Seeking Alpha - May 13, 2014
Siemens presented recently its long-term strategy “Vision 2020," focusing the company toward growth areas of electrification, automation and digitization.
Siemens -2% on lower H2 power, gas revenue outlook
Seeking Alpha - Jun 16, 2017
Siemens (OTCPK:SIEGY -1.9%) opens lower after the company says in a presentation at a J.P. Morgan investors conference in the U.K.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for SI to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate SI's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$132.66 Current Price

$-0.03 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.01 Stability Price (EPV)

Overvalued by 100.00%


Discount Rate: 15.0%


Varying Cash Return on Invested Capital over the past 5 years

SI has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

SI has created $80.62 of cash for every $100 invested.
Figures in EUR. Fiscal year ends in December
20112012201320142015
Free Cash Flow 7.77B -1.45M -183,194.00 298.00 -136,923.00
divided by
Invested Capital 44.84B -369,446.00 -297,266.00 -349,440.00 198,921.00
Cash ROIC 17.32% 393.05% 61.63% -0.09% -68.83%

Poor Return on Equity over the past 5 years

SI has shown an inability to deliver strong results for shareholders. This could be due to poor management, SI operating in a highly competitive industry, or having a weak business in general.

SI has only generated $4.01 of Earnings for every $100 of Shareholders' Equity.
Figures in EUR. Fiscal year ends in December
20112012201320142015
Net Income 6.32B - - - -
divided by
Stockholders' Equity 31.53B - - - -
Return on Equity 20.05% - - - -

Mediocre Business Performance over the past 7 years

SI isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

SI has been unable to consistently create value for shareholders.
Figures in EUR. Fiscal year ends in December
2009201020112012201320142015
Free Cash Flow 6.56B 9.35B 7.77B -1.45M -183,194.00 298.00 -136,923.00

Very Weak Balance Sheet

SI is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of SI's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in EUR. Fiscal year ends in December
2009201020112012201320142015
Cash 13.23B 16.96B 15.84B 370,823.00 297,266.00 349,440.00 215,521.00
Current Assets 44.13B 49.65B 52.81B 1.03M 519,218.00 362,122.00 223,518.00
Total Assets 94.93B 102.83B 104.24B 1.34M 836,528.00 687,456.00 223,518.00
Current Liabilities 37.01B 40.59B 43.56B 927,624.00 657,726.00 641,541.00 637,960.00
Total Liabilities 68.28B 74.48B 72.71B 929,001.00 657,726.00 641,541.00 637,960.00
Stockholder' Equity 26.65B 28.35B 31.53B - - - -
Current Ratio 1.19 1.22 1.21 1.11 0.79 0.56 0.35
TL-to-TA 0.72 0.72 0.70 0.69 0.79 0.93 2.85

Low or No Reinvestment of Profits over the past 7 years

SI has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to SI operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in EUR. Fiscal year ends in December
2009201020112012201320142015
Retained Earnings 22.65B 23.00B 25.88B -33.69M -33.95M -34.08M -34.54M
Retained Earnings Growth - 1.55% 12.54% -100.13% -0.75% -0.39% -1.35%

Highly Competitive Industry over the past 7 years

It's likely that SI is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely SI invests heavily in R&D and Sales, General & Administrative expenses.

Only $2.46 of every $100 of Revenue have been profit, on average over the past 7 years.
Figures in EUR. Fiscal year ends in December
2009201020112012201320142015
Net Income 2.50B 4.07B 6.32B - - - -
divided by
Revenue 76.65B 75.98B 73.52B - - - -
Net Profit Margin 3.26% 5.35% 8.60% - - - -

Weak Pricing Power over the past 7 years

SI is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that SI has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $12.23 of every $100 worth of sales have been Gross Profit, on average over the past 7 years.
Figures in EUR. Fiscal year ends in December
2009201020112012201320142015
Gross Profit 20.71B 21.65B 22.13B - - - -
divided by
Revenue 76.65B 75.98B 73.52B - - - -
Gross Margin 27.02% 28.49% 30.10% - - - -

Low Capital Intensity over the past 7 years

SI has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that SI may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in EUR. Fiscal year ends in December
2009201020112012201320142015
Capital Expenditure - - - 1.62M 240,174.00 1,000.00 10,035.00
divided by
Net Income 2.50B 4.07B 6.32B - - - -
Capital Expenditure Ratio - - - - - - -

Inconsistent Dividend History over the past 7 years

SI has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in EUR. Fiscal year ends in December
2009201020112012201320142015
Dividend Paid 1.54B 1.59B 2.51B - - - -
divided by
Shares Outstanding 871.48M 877.48M 882.66M 34.96M 36.72M 36.72M 36.72M
Dividend Paid Per Share 2.37 2.42 3.81 - - - -
Price at Year End 83.75 114.31 91.79 107.70 138.15 132.66 0.07
Dividend Yield 2.83% 2.12% 4.15% - - - -

History of Stock Buybacks over the past 7 years

SI has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in EUR. Fiscal year ends in December
2009201020112012201320142015
Shares Outstanding 871.48M 877.48M 882.66M 34.96M 36.72M 36.72M 36.72M
Stock Bought Back - -0.68% -0.59% 2,425.06% -4.81% -0.00% -
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