SIE:DEU - Embedded Expectations Analysis - 2018 11 06
Siemens Aktiengesellschaft (SIE:DEU) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with an 19.3x Uniform P/E. At these levels, markets have bearish expectations for the firm, and management is concerned about the positioning of their Power and Gas segment, their portfolio balance, and M&A strategiesSpecifically, management may lack confidence in their ability to drive high growth rates across their segments, and may be concerned about their M&A strategies going forward. Additionally, they may be concerned about the balance of their portfolio mix, and appear to lack confidence in their ability to operate their businesses as a whole unit. Moreover, they may be concerned about the positioning of their Power and Gas segment, and may lack confidence in their ability to reduce costs in the segment. Furthermore, they may lack confidence in their ability to meet EBITDA targets in their strategic companies, and may be concerned about overcapacities and structural changes in the energy industry. Also, they may be exaggerating their vertical domain knowledge, and the entrepreneurial freedoms of their separate business units
Siemens is a technology company. Co.'s Energy sector provides a range of products, solutions and services for generating and transmitting power. The Healthcare sector provides customers a range of medical solutions across the treatment chain. The Industry sector supplies products and solutions for industrial companies, primarily in the process and manufacturing industries. The Infrastructure & Cities sector provides a range of technologies that accelerates the capabilities of metropolitan centers and urban infrastructures. The Investments segment is comprised of Co.'s equity stakes in other companies. The Financial Services segment provides business-to-business financial solutions.
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