If the record series continues, the Munich-based company will soon overtake SAP as the most valuable DAX company.
The market capitalization at Siemens is around 130 billion, SAP currently brings 145 billion to the stock market scales. In our last recommendation a month ago, Siemens was only listed at 155 euros. In the last twelve months, the share rose by around 60%, making it one of the best DAX stocks. The background is a brilliant business development. CEO Roland Busch indicated last week that the medium-term targets could soon be raised. Since 2021, the planning envisages 5 to 7% growth per year.
The specialist for industrial automation and building technology is in a veritable investment frenzy: The group is planning billions in investments in new plants. A total of 2 billion are to be invested, more than twice as much as Siemens has invested in the last two years. Included in this budget is a new electronics factory in Singapore for 200 million euros. In Shengdu, China, 200 million are to flow for a factory for industrial automation, a new train technology factory in the USA is projected with 100 million. The medical technology subsidiary Healthineers is said to make 260 million in Germany and China. The remaining funds of 800 million are to be divided between the USA and Europe.
The budget for research and development is also to be puffed up. CEO Roland Busch states: “Siemens is growing significantly faster than the market.” Most recently, the Munich-based company reported a record order backlog of more than 105 billion. The forecasts have been increased twice recently. Siemens benefits from a special bonanza. The supply chains disrupted by the pandemic are running again. There are significant catch-up effects due to Corona. This special boom will of course abate, but a large part of the boosted business volume will remain after Corona.
Despite the price rally, the share is by no means too expensive. The P/E (2023) estimated at 16. There is also dividend, yield 2.75%. Conclusion: In the last few days, the course has consolidated somewhat. Currently 162.86. That makes engagement a little cheaper. The slightly outdated industrial conglomerate has developed into a growth star. Buy!
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