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Siemens Energy AG Ordinary Shares ENR

Morningstar Rating
€23.21 −0.03 (0.13%)
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Company Report

Siemens Energy Earnings: Guidance Upgrade Lowers Balance Sheet Concerns; Raising Fair Value Estimate

No-moat Siemens Energy upgraded its fiscal 2024 guidance, which most importantly saw it revise its free cash flow before tax guidance to an inflow of EUR 1 billion, after management initially expected a EUR 1 billion outflow. With a lot of bad news having been baked into the stock at the start of the year, including market speculation of a potential rights issues, improving prospects remove investors' balance-sheet concerns and have sent shares open 12% higher and up over 80% year to date. We're raising our fair value estimate by approximately 30% to EUR 19.5, which incorporates a EUR 3 billion cash inflow from disposals and an increase in our short-term revenue outlook, most notably for its Grid Technologies segment, which is a direct beneficiary of the renewable energy transition. Shares are trading at a 10% premium to our revised fair value estimate, and we maintain our very high uncertainty rating.

Price vs Fair Value

ENR is trading at a 29% premium.
Price
€23.24
Fair Value
€69.40
Uncertainty
Very High
1-Star Price
€87.39
5-Star Price
€2.49
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
€23.24
Day Range
€23.1223.62
52-Week Range
€6.4027.01
Bid/Ask
€23.20 / €23.23
Market Cap
€18.41 Bil
Volume/Avg
642,747 / 4.5 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
0.63
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.97%

Company Profile

Siemens Energy 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
Large Growth
Total Number of Employees
97,000

Competitors

Valuation

Metric
ENR
GEV
BKR
Price/Earnings (Normalized)
17.76
Price/Book Value
1.865.162.01
Price/Sales
0.631.371.20
Price/Cash Flow
77.5611.34
Price/Earnings
ENR
GEV
BKR

Financial Strength

Metric
ENR
GEV
BKR
Quick Ratio
0.560.640.73
Current Ratio
0.920.991.25
Interest Coverage
−2.105.2214.14
Quick Ratio
ENR
GEV
BKR

Profitability

Metric
ENR
GEV
BKR
Return on Assets (Normalized)
−11.69%−0.60%4.54%
Return on Equity (Normalized)
−57.03%−3.35%10.83%
Return on Invested Capital (Normalized)
−37.56%−2.46%8.24%
Return on Assets
ENR
GEV
BKR
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