Siemens AG ADR
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$27.00 | Zhwx | Srknbhnljx |
Siemens Earnings: Electrification and Software Subsegments Underpin Solid Quarter; FVE Unchanged
We’re maintaining our EUR 180 fair value estimate following wide-moat Siemens’ strong third quarter, delivering solid organic revenue growth in line with company-compiled consensus and an 11% increase in operating profits, which was ahead of expectations. Robust performance was underpinned by its electrification and software subsegments, offsetting continued weakness in automation. While full-year guidance was maintained, management now expects the lower end of its 4%-8% organic revenue growth to be achieved due to weakness in the digital industries segment, which is consistent with our forecasts. Shares are marginally undervalued.