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Siemens Energy AG Ordinary Shares ENR

Morningstar Rating
€18.85 +1.05 (5.90%)
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Company Report

Initiating Coverage on Siemens Energy With EUR 14.80 Fair Value and Very High Uncertainty Rating

Siemens Energy's products and solutions helps generate one-sixth of the world's electricity. However, the group has failed to produce net income since its spinout from Siemens AG in 2020. Intense competition in several of its businesses have been compounded by quality issues with some of its wind turbines, resulting in large losses. Restoring profitability depends on the turnaround efforts at Siemens Gamesa and the magnitude of unforeseen losses to fix faulty wind turbines.

Price vs Fair Value

ENR is trading at a 20% premium.
Price
€17.76
Fair Value
€53.10
Uncertainty
Very High
1-Star Price
€46.80
5-Star Price
€6.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The grid technologies segment will benefit from significant investment into improving the electrical infrastructure required to accommodate intermittent renewable energy sources into the energy mix.

Bears

Gas demand has declined since its peak in 2000, which will lower the group’s installed fleet of equipment that benefits from higher-margin servicing over the long term.

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News

Trading Information

Previous Close Price
€17.80
Day Range
€17.8319.02
52-Week Range
€6.4024.81
Bid/Ask
€18.76 / €0.00
Market Cap
€14.93 Bil
Volume/Avg
4.8 Mil / 3.6 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
0.48
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Siemens Energy AG manufactures a wide range of equipment used to generate and transmit energy. The group is a product of the spinout from Siemens AG in 2020, consisting of the power and gas segment and Siemens Gamesa, although its operations go back over 150 years. Approximately one sixth of global electricity generation is based on its technology.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Mid Core
Total Number of Employees
97,000

Competitors

Valuation

Metric
ENR
BKR
GE
Price/Earnings (Normalized)
18.7648.14
Price/Book Value
1.452.135.91
Price/Sales
0.481.272.55
Price/Cash Flow
11.9842.18
Price/Earnings
ENR
BKR
GE

Financial Strength

Metric
ENR
BKR
GE
Quick Ratio
0.550.730.76
Current Ratio
0.921.251.17
Interest Coverage
−3.4814.145.22
Quick Ratio
ENR
BKR
GE

Profitability

Metric
ENR
BKR
GE
Return on Assets (Normalized)
−8.16%4.54%3.12%
Return on Equity (Normalized)
−37.82%10.83%17.00%
Return on Invested Capital (Normalized)
−24.60%8.24%10.09%
Return on Assets
ENR
BKR
GE
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