Siemens Energy stock: Enormous opportunities?

Last Updated: 16. Januar 2024By

Siemens Energy is currently one of the most interesting stocks on the market if you want to invest in energy stocks (or at least if you are considering such investments). The company has lost ground in the stock market in recent days – which is always a favorable situation for buyers if the value is attractive.

There is hardly any reason for this, for example, the prices fell by -2.5% on Tuesday. There is hardly any reason for this. The market has been mistaken in this sense, as no reason has been announced from the company. According to estimates, the company will generate sales of around 32 to 33 billion euros in the current year.

The net profit is expected to be around 1 billion euros, which would also be a sufficiently good result. In 2023, the company had reported a net loss of approximately -4.5 billion euros. At the beginning of this year, estimates were initially around 800 million euros. This shows that the market now expects more from the company.

The market value is currently at 9.6 billion euros. This makes the P/E ratio easy to calculate: it will be around 12.5 to 13. This is comparatively low, if the P/E ratio is used as a benchmark. The price-to-sales ratio (P/S ratio) is around 0.3. These are also values that such a stock can live with.

Easy to evaluate Whether the stock is actually „cheap“? Only the future will tell, especially the development of the subsidiary Siemens Gamesa. They have to make money with wind power.

However, there are currently arguments in favor of Siemens Energy. I especially like the fact that the estimates for net profits have recently been revised upwards. This shows that the market had presumably underestimated the stock for a longer period of time.

In addition, analysts in consensus see the stock at target prices of 14.87 euros. This means that the stock has a potential of more than 25% if the estimates are accurate – which is likely the case. There are two problematic factors: the estimates have been slightly lowered in recent weeks, which apparently worsened the sentiment. In addition, wind power remains controversial in Germany at least. Therefore, the stock is probably better positioned for the long term than for the short term.

In the short term, the trend is largely neutral.

Siemens Energy: Analysts see more potential – WKN: ENER6Y – ISIN: DE000ENER6Y0 Source: