Siemens (XTRA:SIE): Assessing Valuation After a 1-Month Pullback and Strong 1-Year Shareholder Returns

Siemens (XTRA:SIE) has quietly kept delivering for long term holders, with the stock up around 22% over the past year, even after a recent pullback over the past month.

See our latest analysis for Siemens.

That recent 1 month share price pullback of 5.73 percent comes after a strong year to date share price return of 21.72 percent and a 1 year total shareholder return of 22.03 percent. This suggests that momentum is cooling, while the longer term trend remains clearly positive.

If Siemens renewed your interest in industrial and infrastructure names, it could be worth scanning aerospace and defense stocks for other operationally strong businesses with structural growth drivers.

With profits growing faster than sales, a solid multi year shareholder return and the shares trading at a double digit discount to both intrinsic value and analyst targets, is Siemens a buying opportunity or is future growth already priced in?

Most Popular Narrative Narrative: 9% Undervalued

With Siemens last closing at €230.20 against a most popular narrative fair value of about €253, the valuation case rests heavily on its automation and electrification engines.

The analysts have a consensus price target of €243.536 for Siemens based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the more bullish ones reporting a price target of €300.0, and the more bearish reporting a price target of just €185.0.

Read the complete narrative.

Curious how steady revenue expansion, firmer margins and a slightly leaner earnings multiple can still support upside from here? The narrative lays out a detailed path from today’s profits to a much higher earnings base, then discounts it back using a modest required return. Want to see exactly how those moving parts combine into that fair value mark and where expectations might be tightest?

Result: Fair Value of €252.99905 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent macro uncertainty and weaker automation demand, especially in China and Germany, could quickly undermine the upbeat long term earnings trajectory.

Find out about the key risks to this Siemens narrative.

Build Your Own Siemens Narrative

If you would rather dig into the numbers yourself or challenge these assumptions, you can design a personalized Siemens investment story in just minutes: Do it your way.

A great starting point for your Siemens research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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