(SIE) Siemens Aktiengesellschaft - Ratings and Ratios

Siemens Aktiengesellschaft (XETRA:SIE) is a diversified technology group headquartered in Munich, Germany, with operations spanning Europe, the CIS, Africa, the Middle East, the Americas, Asia, and Australia. It is organized into five core segments: Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services (SFS).

**Digital Industries** delivers factory automation hardware (e.g., CNC systems, servo drives, inverters) and software (PLM, simulation, Mendix low-code platform). In FY 2023 the segment generated roughly €22 billion in revenue, growing 5% YoY, and posted an adjusted EBIT margin near 15%, reflecting strong demand for Industry 4.0 solutions. A key driver is the projected 6% CAGR growth in global industrial automation spend through 2029, fueled by supply-chain reshoring and sustainability mandates.

**Smart Infrastructure** focuses on energy transition, building electrification, and grid-level digital services. Revenue rose about 10% YoY to €18 billion in FY 2023, supported by EU green-deal funding and accelerating adoption of renewable-energy-linked power distribution. The segment’s gross margin improved to 23% as higher-value software and service contracts offset hardware price pressure.

**Mobility** supplies rail vehicles, signaling, and digital services for passenger and freight transport. FY 2023 revenue was €13 billion, with a modest 2% increase, reflecting long-lead-time project pipelines and growing demand for electrified rail networks in Europe and Asia. The segment’s operating cash flow benefitted from recent leasing contracts and aftermarket digital maintenance services.

**Siemens Healthineers** develops diagnostic imaging, laboratory diagnostics, and therapeutic equipment, plus clinical consulting. The unit posted €18 billion in revenue in FY 2023, up 12% YoY, and achieved an operating margin of approximately 15%, driven by expanding point-of-care imaging and AI-enabled diagnostics. Aging populations and higher healthcare spending are long-term tailwinds.

**Siemens Financial Services (SFS)** provides structured financing, leasing, and advisory solutions across Siemens’ industrial ecosystem. In FY 2023 SFS contributed €1.5 billion to net profit, with a return on equity of ~8%, benefitting from low-interest-rate environments and the group’s strong order backlog that fuels financing demand.

Assuming the current macro-environment-moderate European GDP growth (~1.5% YoY), sustained capital-expenditure cycles in automation and renewable energy, and stable interest rates-Siemens’ diversified exposure positions it to capture incremental upside while mitigating segment-specific cyclicality. However, execution risk remains around supply-chain constraints, geopolitical tensions affecting the CIS market, and competitive pressure in low-code platforms.

For a deeper quantitative assessment, the ValueRay platform provides a granular breakdown of Siemens’ segment valuations and scenario analyses.