BME:SGRE

Stock Analysis Report

Siemens Gamesa Renewable Energy

Executive Summary

Siemens Gamesa Renewable Energy, S.A., together with its subsidiaries, engages in the development and construction of wind farms.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Siemens Gamesa Renewable Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SGRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

SGRE

1.4%

ES Electrical

1.1%

ES Market


1 Year Return

32.8%

SGRE

36.2%

ES Electrical

7.6%

ES Market

Return vs Industry: SGRE underperformed the Spanish Electrical industry which returned 37% over the past year.

Return vs Market: SGRE exceeded the Spanish Market which returned 8.5% over the past year.


Shareholder returns

SGREIndustryMarket
7 Day5.3%1.4%1.1%
30 Day-1.0%0.8%0.3%
90 Day26.8%15.4%3.5%
1 Year33.0%32.8%40.1%36.2%11.5%7.6%
3 Yearn/a28.4%17.3%15.8%4.7%
5 Yearn/a73.7%-23.4%11.0%-7.6%

Price Volatility Vs. Market

How volatile is Siemens Gamesa Renewable Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Siemens Gamesa Renewable Energy undervalued compared to its fair value and its price relative to the market?

75.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SGRE (€14.94) is trading above our estimate of fair value (€10.36)

Significantly Below Fair Value: SGRE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SGRE is poor value based on its PE Ratio (72.5x) compared to the Electrical industry average (22.4x).

PE vs Market: SGRE is poor value based on its PE Ratio (72.5x) compared to the Spanish market (17x).


Price to Earnings Growth Ratio

PEG Ratio: SGRE is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: SGRE is good value based on its PB Ratio (1.6x) compared to the XE Electrical industry average (2.4x).


Next Steps

Future Growth

How is Siemens Gamesa Renewable Energy forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGRE's forecast earnings growth (26.6% per year) is above the savings rate (0.4%).

Earnings vs Market: SGRE's earnings (26.6% per year) are forecast to grow faster than the Spanish market (9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SGRE's revenue (3.2% per year) is forecast to grow slower than the Spanish market (3.4% per year).

High Growth Revenue: SGRE's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGRE's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Siemens Gamesa Renewable Energy performed over the past 5 years?

-17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGRE has a large one-off loss of €121.5M impacting its September 30 2019 financial results.

Growing Profit Margin: SGRE's current net profit margins (1.4%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: SGRE's earnings have declined by -17.6% per year over the past 5 years.

Accelerating Growth: SGRE's earnings growth over the past year (100%) exceeds its 5-year average (-17.6% per year).

Earnings vs Industry: SGRE earnings growth over the past year (100%) exceeded the Electrical industry 4.2%.


Return on Equity

High ROE: SGRE's Return on Equity (2.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Siemens Gamesa Renewable Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SGRE's short term assets (€7.9B) do not cover its short term liabilities (€8.0B).

Long Term Liabilities: SGRE's short term assets (€7.9B) exceed its long term liabilities (€2.4B).


Debt to Equity History and Analysis

Debt Level: SGRE's debt to equity ratio (13.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SGRE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SGRE's debt is well covered by operating cash flow (91.4%).

Interest Coverage: SGRE's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet

Inventory Level: SGRE has a low level of unsold assets or inventory.

Debt Coverage by Assets: SGRE's debt is covered by short term assets (assets are 9.2x debt).


Next Steps

Dividend

What is Siemens Gamesa Renewable Energy's current dividend yield, its reliability and sustainability?

1.08%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.2%markettop25%5.4%industryaverage2.4%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SGRE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SGRE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SGRE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SGRE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SGRE is not paying a notable dividend for the Spanish market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SGRE's dividend in 3 years as they are not forecast to pay a notable one for the Spanish market.


Next Steps

Management

What is the CEO of Siemens Gamesa Renewable Energy's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Markus Tacke 0

0yrs

Tenure

0

Dr. Markus Tacke serves as the Chief Executive Officer of Siemens Gamesa Renewable Energy, S.A. and as its Executive Director since June 20, 2017. Dr. Tacke serves as Chief Executive Officer of Siemens Gam ...


Management Age and Tenure

1.2yrs

Average Tenure

Experienced Management: SGRE's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

Experienced Board: SGRE's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: SGRE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€59,00008 Nov 19
Markus Tacke
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares5,000
Max Price€11.80

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Andreas Nauen (55yo)

    Offshore Chief Executive Officer

    • Alan Feeley

      Chief Information & Cyber Security Officer

      • David Mesonero Molina

        Head of Corporate Development

        • Tenure: 1.1yrs
      • Mark Albenze

        Chief Executive Officer of Service Business Unit

        • Markus Tacke

          CEO & Executive Director

          • Christoph Wollny

            Chief Operating Officer

            • Tenure: 1.2yrs
          • Carlos Albi

            Managing Director of Corporate Development & Strategy

            • Tenure: 1.3yrs
          • Antonio de la Torre

            Chief Technology Officer

            • Javier Fernández-Combarro

              Human Resources Director

              • Thomas Spannring

                Accounting


                Board Members

                • Klaus Rosenfeld (53yo)

                  Non-Executive Independent Director

                  • Tenure: 2.8yrs
                • Michael Sen (51yo)

                  Proprietary Director

                  • Tenure: 2.7yrs
                • Lisa Davis (56yo)

                  Non-Executive Proprietary Director

                  • Tenure: 2.8yrs
                • Markus Tacke

                  CEO & Executive Director

                  • Gloria Hernández García

                    Independent Director

                    • Tenure: 4.7yrs
                  • Andoni Cendoya Aranzamendi

                    Independent Director

                    • Tenure: 4.7yrs
                  • Mariel von Schumann (48yo)

                    Non-Executive Proprietary Director

                    • Tenure: 2.8yrs
                  • Carlos Rodríguez-Quiroga Menéndez

                    Secretary & Executive Director

                    • Tenure: 18.3yrs
                  • Miguel Ángel López Borrego

                    Non-Executive Chairman

                    • Tenure: 1.1yrs
                  • Rudolf Krämmer

                    Independent Director

                    • Tenure: 0.9yrs

                  Company Information

                  Siemens Gamesa Renewable Energy, S.A.'s company bio, employee growth, exchange listings and data sources


                  Key Information

                  • Name: Siemens Gamesa Renewable Energy, S.A.
                  • Ticker: SGRE
                  • Exchange: BME
                  • Founded: 1976
                  • Industry: Heavy Electrical Equipment
                  • Sector: Capital Goods
                  • Market Cap: €10.536b
                  • Shares outstanding: 679.51m
                  • Website: https://www.siemensgamesa.com

                  Number of Employees


                  Location

                  • Siemens Gamesa Renewable Energy, S.A.
                  • Parque Tecnologico de Bizkaia
                  • Edificio 222
                  • Zamudio
                  • Basque Country
                  • 48170
                  • Spain

                  Listings

                  TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                  GCTA.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDApr 2017
                  SGREBME (Bolsas y Mercados Espanoles)YesShare CapitalESEURApr 2017
                  GTQ1DB (Deutsche Boerse AG)YesShare CapitalDEEURApr 2017
                  0H4NLSE (London Stock Exchange)YesShare CapitalGBEURApr 2017
                  GTQ1XTRA (XETRA Trading Platform)YesShare CapitalDEEURApr 2017
                  SGRE NBMV (Bolsa Mexicana de Valores)YesShare CapitalMXMXNApr 2017
                  GCTA.YOTCPK (Pink Sheets LLC)Depositary Receipt (Common Stock)USUSDApr 2017
                  SGREEBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURApr 2017

                  Biography

                  Siemens Gamesa Renewable Energy, S.A., together with its subsidiaries, engages in the development and construction of wind farms. It is involved in the engineering, design, production, and sale of wind turbines and related components. It operates through two segments, Wind Turbines and Operation and Maintenance. The Wind Turbines segment offers wind turbines for various pitch and speed technologies, as well as provides development, construction, and sale of wind farms. The Operation and Maintenance segment engages in the management, monitoring, and maintenance of wind farms. It operates in approximately 90 countries, with a total capacity base of over 89 gigawatts. The company was formerly known as Gamesa Corporación Tecnológica, Sociedad Anónima and changed its name to Siemens Gamesa Renewable Energy, S.A. in May 2017. The company was founded in 1976 and is headquartered in Zamudio, Spain. Siemens Gamesa Renewable Energy, S.A. operates as a subsidiary of Siemens Aktiengesellschaft. 


                  Company Analysis and Financial Data Status

                  All financial data provided by Standard & Poor's Capital IQ.
                  DataLast Updated (UTC time)
                  Company Analysis2020/01/20 22:29
                  End of Day Share Price2020/01/20 00:00
                  Earnings2019/09/30
                  Annual Earnings2019/09/30


                  Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.