Siemens

Analyst updates, 19.11.

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- JEFFERIES raises the price target for NETFLIX from USD 800 to USD 1000. Buy. $NFLX (+0,25 %)

- DEUTSCHE BANK RESEARCH raises the price target for SIEMENS from EUR 200 to EUR 210. Buy. $SIE (-0,16 %)

- DZ BANK raises the price target for WALT DISNEY from USD 115 to USD 130. Buy. $DIS (-0,23 %)

- KEPLER CHEUVREUX raises the target price for ALZCHEM from EUR 69 to EUR 73. Buy. $ACT (-0,83 %)

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- BOFA downgrades SIEMENS from Buy to Neutral and raises target price from EUR 196 to EUR 200. $SIE (-0,16 %)

- BERENBERG lowers the price target for BAYER from EUR 28 to EUR 22. Hold. $BAYN (-0,19 %)

- BERENBERG lowers the price target for SMA SOLAR from EUR 21 to EUR 14. Hold. $S92 (-1,59 %)

- DZ BANK downgrades SHOPIFY from Hold to Sell and raises target price from USD 68 to USD 91. $SHOP (+0,17 %)

- STIFEL lowers the price target for BECHTLE from EUR 50 to EUR 45. Buy. $BC8 (+0,93 %)

- WARBURG RESEARCH lowers the price target for JUNGHEINRICH from EUR 49 to EUR 47. Buy. $JUN3 (-0,74 %)

- HAUCK AUFHÄUSER IB lowers the target price for KNAUS TABBERT from EUR 16 to EUR 8. Sell. $KTA (+1,61 %)

- DEUTSCHE BANK RESEARCH lowers the price target for JOST WERKE from EUR 70 to EUR 60. Buy. $JST (+0,42 %)

- GOLDMAN lowers the price target for TEAMVIEWER from EUR 18 to EUR 17. Buy. $TMV (-0,15 %)

Analyst updates, 18.11.

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- MORGAN STANLEY raises the price target for SIEMENS from EUR 212 to EUR 220. Overweight. $SIE (-0,16 %)

- HSBC raises the target price for RHEINMETALL from EUR 660 to EUR 700. Buy. $RHM (+0,15 %)

- HSBC raises the target price for DEUTSCHE TELEKOM from EUR 33.50 to EUR 34. Buy. $DTE (+0,24 %)

- DEUTSCHE BANK RESEARCH raises the price target for ALLIANZ SE from EUR 275 to EUR 310. Buy. $ALV (+0,22 %)

- DEUTSCHE BANK RESEARCH raises the price target for SIEMENS ENERGY from EUR 52 to EUR 57. Buy. $ENR (+0,35 %)

- UBS upgrades AIR PRODUCTS & CHEMICALS from Neutral to Buy and raises target price from USD 338 to USD 375. $APD (-0,08 %)

- ODDO BHF raises the price target for SWISS RE from CHF 127 to CHF 138. Outperform. $SREN (+0,25 %)

- BARCLAYS raises the price target for MUNICH RE from EUR 523 to EUR 551. Overweight. $MUV2 (+0 %)

- BARCLAYS raises the target price for HANNOVER RÜCK from EUR 206 to EUR 217. Underweight. $HNR1 (+0,1 %)

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- MORGAN STANLEY lowers the target price for BAYER from EUR 35 to EUR 30. Equal-Weight. $BAYN (-0,19 %)

- KEPLER CHEUVREUX lowers the target price for SIEMENS HEALTHINEERS from EUR 60.50 to EUR 59. Buy. $SHL (-0,55 %)

- KEPLER CHEUVREUX downgrades KNAUS TABBERT to Hold. Target price EUR 15. $KTA (+1,61 %)

- DEUTSCHE BANK RESEARCH lowers the price target for SGL CARBON from EUR 10.60 to EUR 9. Buy. $SGL (+0,42 %)

- DEUTSCHE BANK RESEARCH lowers the price target for PVA TEPLA from EUR 18 to EUR 14.50. Hold. $TPE (+5,16 %)

- DEUTSCHE BANK RESEARCH lowers the price target for KERING from EUR 340 to EUR 320. Buy. $KER (+0,23 %)

- ODDO BHF downgrades BECHTLE to Neutral. Target price 37 EUR. $BC8 (+0,93 %)

- BARCLAYS lowers the price target for UNITED INTERNET from EUR 27 to EUR 23. Equal-Weight. $UTDI (+0,48 %)

- BARCLAYS lowers the price target for 1&1 from EUR 19 to EUR 17. Equal-Weight. $1U1 (-0,17 %)

- BERENBERG lowers the target price for AIR LIQUIDE from EUR 195 to EUR 190. Buy. $AI (+0,14 %)

- HSBC downgrades PORSCHE SE from Hold to Reduce and lowers target price from EUR 36 to EUR 26. $PAH3 (+0,15 %)

Analyst updates, 15.11. 👇🏼

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- JEFFERIES raises the price target for ASML from EUR 760 to EUR 840. Buy. $ASML (-0,02 %)

- RBC raises the price target for TESLA from USD 249 to USD 313. Outperform. $TSLA (+0,12 %)

- JPMORGAN raises the price target for WALT DISNEY from USD 125 to USD 128. Overweight. $DIS (-0,23 %)

- JPMORGAN raises the price target for SIEMENS from EUR 215 to EUR 230. Overweight. $SIE (-0,16 %)

- BARCLAYS raises the target price for SIEMENS ENERGY from EUR 21 to EUR 35. Equal-Weight. $ENR (+0,35 %)

- LBBW raises the target price for EON from EUR 13.80 to EUR 13.90. Buy. $EOAN (+0,28 %)

- HAUCK AUFHÄUSER IB raises the target price for ADESSO from EUR 80 to EUR 85. Hold. $ADN1 (+0,78 %)

- DEUTSCHE BANK RESEARCH raises the target price for BURBERRY from GBP 7.40 to GBP 8.60. Hold. $BRBY (+1,48 %)

- BERENBERG raises the price target for TALANX from EUR 76.20 to EUR 91.10. Buy. $TLX (+0,1 %)

- BERENBERG raises the price target for HAPAG-LLOYD from EUR 163 to EUR 169. Hold. $HLAG (+0,34 %)

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- JPMORGAN lowers the price target for BAYER from EUR 34 to EUR 25. Neutral. $BAYN (-0,19 %)

- SANTANDER downgrades SHELL from Neutral to Outperform and lowers target price from GBP 30.50 to GBP 30. $SHEL (+0,72 %)

- WARBURG RESEARCH lowers the price target for SECUNET from EUR 216 to EUR 210. Buy. $YSN (+4,64 %)

- METZLER lowers the price target for SIXT-STÄMME from EUR 105 to EUR 95. Buy. $SIX2 (+0,18 %)

- ODDO BHF lowers the target price for MERCK KGAA from EUR 187 to EUR 176. Outperform. $MRK (-0,21 %)

- METZLER lowers the price target for SMA SOLAR from EUR 20 to EUR 16. Hold. $S92 (-1,59 %)

- DEUTSCHE BANK RESEARCH lowers the price target for GRENKE from EUR 28 to EUR 24. Buy. $GLJ (+0,31 %)

- BERENBERG lowers the target price for K+S from EUR 15.70 to EUR 14.70. Buy. $SDF (+0,49 %)

- BERENBERG lowers the price target for AUMANN from EUR 17 to EUR 14.50. Hold. $AAG (+1,15 %)

- BERENBERG lowers the price target for DERMAPHARM from EUR 58 to EUR 50. Buy. $DMP (+0,54 %)

- BARCLAYS lowers the price target for SYMRISE from EUR 123 to EUR 115. Equal-Weight. $SY1 (+0,07 %)

Siemens Q3 2024 $SIE (-0,16 %)

Financial performance:

• Revenue: For fiscal year 2024, revenue increased by 1% to €75.9 billion (previous year: €74.9 billion).
• Earnings per share (EPS): Reached a record €10.54, an increase of 6% compared to the previous year (previous year: €9.93).
• Orders: Decreased by 6% to 84.1 billion euros (previous year: 89.4 billion euros), indicating a possible stagnation in demand.

Balance sheet overview:

• Total assets: Increased to 147.8 billion euros (previous year: 145.1 billion euros).
• Cash and cash equivalents: Decreased slightly to 9.2 billion euros (previous year: 10.1 billion euros).
• Equity: Increase to 56.2 billion euros, underlining financial strength (previous year: 53.1 billion euros).

Details of the profit and loss account:

• Gross profit: Increased slightly to 29.8 billion euros (previous year: 29.1 billion euros).
• Profit from continuing operations before tax: Increased marginally to 11.2 billion euros (previous year: 11.1 billion euros), indicating a stable operating performance.

Cash flow overview:

• Cash flow from operating activities: Decreased slightly to 11.8 billion euros (previous year: 12.3 billion euros).
• Free cash flow from continuing operations: Sank slightly to 9.7 billion euros (previous year: 10.1 billion euros).

Key figures and profitability metrics:

• Industrial division profitability: Remains stable at a margin of 15.5%, reflecting the efficiency of the operating divisions.
• Return on capital employed (ROCE): Increase to 19.1% (previous year: 18.6%), demonstrating effective use of capital and profitability.

egment information:

• Digital Industries: Sales down 10% to €18.5 billion, indicating potential weakness in demand in this area, although the profit margin remained stable at 18.9%.
• Smart Infrastructure: Sales growth of 9% to €21.4 billion with a profit margin of 17.3%, indicating strong growth potential in infrastructure.
• Mobility: Sales growth of 9% to €11.4 billion with a margin of 8.9%, supported by high demand in the mobility sector.

Competitive position: Siemens remains competitive with a solid capital structure and industry-leading credit rating. The ratio of net debt to EBITDA is a favorable 0.7x.

Forecasts and management commentary: For fiscal 2025, Siemens expects comparable revenue growth between 3% and 7% and a book-to-bill of above 1. Adjusted EPS guidance (excluding PPA) is between €10.40 and €11.00.

Risks and opportunities:

• Risks: Geopolitical uncertainties and challenges in the manufacturing sector could slow down growth.
• Opportunities: Siemens could benefit from investments in infrastructure and the rapidly growing markets for electrification and mobility.

Summary of results:

Positives:

• Record EPS of €10.54: High profit level despite challenges.
• Strong growth in Smart Infrastructure: Segment growth of 9%, benefiting from demand for smart infrastructure solutions.
• Robust free cash flow generation: Solid free cash flow of €9.7 billion, supporting dividend capacity.
• Improved return on capital employed (ROCE): Increase to 19.1% demonstrates efficient use of capital.
• Solid balance sheet: Increase in equity, underlining financial stability.

Negative aspects:

• Decline in orders by 6%: A warning signal for future demand.
• Decline in the Digital Industries segment: 10% drop in sales could indicate structural weakness.
• Lower cash balances: Decline in liquidity, which could affect future flexibility.
• Slight decline in operating cash flow: Slight decline indicates potential efficiency losses.
• Challenges in the manufacturing sector: Overcapacity and weak demand could limit growth potential.

Summary Earnings, 14.11. 👇🏼

Siemens AG Q4 24 Earnings: $SIE (-0,16 %)

- Orders At 22.93Bln Euros (est 21.36 Bln Euros)

- Revenue Rising 1% To 20.81 Bln Euros (est 20.77 Bln Euros)

- Profit 3.12 Bln Euros (est 3.0 Bln Euros)

- Net Income Of 1.90 Bln Euros (est 1.80 Bln Euros)

Swiss Re Q3 24 Earnings: $SREN (+0,25 %)

- Net Income Of $2.2 Billion For The First Nine Months Of 2024

- 9m Return On Investments (ROI) Of 3.9%; Recurring Income Yield Of 4.0%

- Return On Equity (ROE) Of 13.4% For First Nine Months Of Year

- Still Expects To Achieve A Group Net Income Of More Than $3 Billion For 2024

- Currently Expects Losses Resulting From Hurricane Milton To Be Less Than $300 Mln, Which Will Impact Group Results In Q4 2024

E.ON SE 9M 24 Earnings: $EOAN (+0,28 %)

- Adj EBIT EU4.37B, -23% (Y/Y)

- Sales EU56.28B, -19% (Y/Y)

- Still Sees FY Adj EBITDA EU8.8B To EU9B, (est EU8.94B)

- Still Sees FY Adj Net EU2.8B To EU3B (est 2.92B)

Deutsche Telekom AG Q3 24 Earnings: $DTE (+0,24 %)

- Net Income EUR 2.957B (est EUR 2.396B)

- Adjusted EBITDA AL EU11.10B (est 11.05B)

- Rev EU28.50B (est 28.39B)

- Sees FY Adj EBITDA Al About EU43B

ASML is sticking to its long-term goals and plans to increase sales to between 44 and 60 billion euros by 2030, with a gross margin of 56 to 60 percent. Despite the current difficult market conditions, ASML CEO Christophe Fouquet sees promising long-term prospects for the semiconductor industry, especially due to the AI trend. $ASML (-0,02 %)

Talanx expects a record profit of over 1.9 billion euros for 2024 and a surplus of over 2.1 billion euros for 2025. The profit increase will be supported by primary insurance and new targets are to be presented at the Capital Markets Day on December 11. $TLX (+0,1 %)

Nagarro increased sales by 3.7 percent to 242.9 million euros in the third quarter and adjusted EBITDA by a good eight percent to 34.6 million euros. The company is adjusting its revenue forecast for 2024 to 960 million euros and expects an EBITDA margin of over 14 percent. $NA9 (-0,91 %)

Adesso recorded an increase in turnover of 15 percent to 330 million euros in the third quarter and a 37 percent rise in operating profit to 38.9 million euros. Jörg Schroeder will step down as Chief Financial Officer on April 30, 2025; his successor will be Michael Knopp from January 15, 2025. $ADN1 (+0,78 %)

Dermapharm increases turnover in the first nine months by just under three percent to 890.1 million euros, while adjusted EBITDA falls slightly to just over 240 million euros. However, consolidated net income rose to just under 93 million euros, and the Group CEO is optimistic for the final quarter. $DMP (+0,54 %)

Energiekontor sees itself on course for its annual targets after nine months with an expected pre-tax result of EUR 30 to 70 million, although the upper end of the range will not be reached due to the below-average wind year. Three projects with 79 MW have already been commissioned this year and several more projects are currently being marketed. $EKT (-0,31 %)

The financial services provider MLP increased revenue by twelve percent to EUR 746 million in the first nine months and EBIT by almost half to EUR 66 million. The company confirms its forecast for 2024 with EBIT of between EUR 85 and 95 million and expects EBIT of EUR 100 to 110 million in 2025. $MLP (-0,34 %)

GFT Technologies is again lowering its annual targets and now expects revenue growth of 10 percent to around EUR 865 million and adjusted EBIT of around EUR 77 million. Profit before taxes is expected to fall to around EUR 65 million, as the environment remains challenging and momentum in the coming months will be lower than expected. $GFT (+0,92 %)

ProSiebenSat.1 is lowering its forecast for the year due to weak TV advertising revenues and expects an adjusted operating result of less than EUR 575 million. The Group plans to sell Flaconi and Verivox in order to invest in Joyn, programs and debt reduction. $PSM (+0,23 %)

Wacker Neuson is again lowering its annual targets and now expects revenue of EUR 2.2 to 2.3 billion and an EBIT margin of 5.5 to 6.5 percent. In the third quarter, the company reports a drop in revenue of over 20 percent and a 61 percent fall in EBIT. $WAC (-0,7 %)

Cewe confirms its annual targets with sales of between 770 and 820 million euros and an EBIT of 77 to 87 million euros, with the upper half of the ranges being targeted. The company generates most of its profits in the Christmas quarter and posts a marginally positive EBIT in the summer quarter, despite increased marketing expenditure. $CWC (+0,1 %)

Merck KGaA reports a 1.8 percent increase in sales to 5.3 billion euros in the third quarter, while the adjusted operating result rises by 12 percent to over 1.6 billion euros. CEO Belén Garijo announces that sales for 2024 are expected to be in the lower half of the previous range. $MRK (-0,21 %)

Bilfinger records revenue growth of 15 percent to just under EUR 1.3 billion in the third quarter and increases operating profit by 35 percent to EUR 76 million, supported by good demand and the latest acquisition. The Executive Board confirms the adjusted annual targets with an increase in revenue to EUR 4.8 to 5.2 billion for 2024, also taking into account a savings program and special effects from the integration of Stork. $GBF (+0,33 %)

K+S is revising its production forecast for 2024 downwards due to high sickness rates and now expects an operating result (EBITDA) of around EUR 540 million. In the third quarter, the company reports a decline in sales and EBITDA, with profits exceeding analysts' expectations but remaining below consensus estimates for the full year. $SDF (+0,49 %)

Analsyst updates, 08.11.

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- GOLDMAN upgrades BIONTECH from Neutral to Buy and raises price target from USD 90 to USD 137. $BNTX (-1,02 %)

- BOFA raises target price for UNDER ARMOUR from USD 9 to USD 13. Neutral. $UAA (+1,07 %)

- DEUTSCHE BANK RESEARCH raises the price target for DELIVERY HERO from EUR 29 to EUR 35. Hold. $DHE

- DEUTSCHE BANK RESEARCH raises the price target for SIEMENS from EUR 197 to EUR 200. Buy. $SIE (-0,16 %)

- JEFFERIES raises the price target for HOCHTIEF from EUR 135 to EUR 138. Buy. $HOT (+0,78 %)

- DEUTSCHE BANK RESEARCH raises the price target for SIEMENS HEALTHINEERS from EUR 60 to EUR 62. Buy. $SHL (-0,55 %)

- DEUTSCHE BANK RESEARCH raises the price target for NORDEX from EUR 18 to EUR 19. Buy. $NDX1 (+0,66 %)

- DEUTSCHE BANK RESEARCH raises the price target for RATIONAL from 832 EUR to 841 EUR. Hold. $RAA (+0,26 %)

- DEUTSCHE BANK RESEARCH raises the target price for AXA from 37 EUR to 39 EUR. Buy. $CS (+0,28 %)

- WARBURG RESEARCH raises the price target for BASTEI LÜBBE from EUR 11.70 to EUR 12.20. Buy. $BST (+0,51 %)

- DEUTSCHE BANK RESEARCH raises the price target for ARCELORMITTAL from EUR 28 to EUR 29. Buy. $MT (-0,1 %)

- DZ BANK raises the price target for SWISS RE from CHF 130 to CHF 140. Buy. $SREN (+0,25 %)

- ODDO BHF raises the price target for HEIDELBERG MATERIALS from EUR 99 to EUR 110. Neutral. $HEI (+0,4 %)

- KEPLER CHEUVREUX raises the price target for DAIMLER TRUCK from EUR 35 to EUR 41. Hold. $DTG (+0,45 %)

- KEPLER CHEUVREUX upgrades REDCARE PHARMACY from Reduce to Hold. $RDC (+0,73 %)

- ODDO BHF raises the price target for HENKEL from EUR 67 to EUR 73. Neutral. $HEN (+0,18 %)

- ODDO BHF raises the price target for FREENET from EUR 27 to EUR 28. Neutral. $FNTN (-0,17 %)

- BARCLAYS raises the target price for ABOUT YOU from EUR 3.10 to EUR 3.40. Underweight. $YOU (-1,07 %)

- BARCLAYS raises the target price for NEMETSCHEK from EUR 108 to EUR 125. Overweight. $NEM (+0,5 %)

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- BOFA lowers the price target for PINTEREST from USD 45 to USD 39. Buy. $PINS

- WARBURG RESEARCH lowers the price target for DAIMLER TRUCK from EUR 56 to EUR 55. Buy. $DTG (+0,45 %)

- UBS lowers the price target for JCDECAUX from EUR 21.60 to EUR 18.50. Neutral. $DEC (+0,14 %)

- WARBURG RESEARCH lowers the price target for ADTRAN HOLDING from EUR 9.70 to EUR 9.30. Buy. $ADTN (+1,38 %)

- ODDO BHF lowers the price target for NORDEX from EUR 18 to EUR 17. Outperform. $NDX1 (+0,66 %)

- BARCLAYS lowers the target price for VESTAS from DKK 99 to DKK 80. Underweight. $VWS (-0,62 %)

- KEPLER CHEUVREUX lowers the price target for FRAPORT from EUR 62 to EUR 59. Buy. $FRA (+0,38 %)

- BARCLAYS lowers the target price for GSK from GBP 15.50 to GBP 14.50. Equal-Weight. $GSK

- BERENBERG lowers the price target for COMPUGROUP from EUR 23 to EUR 21. Buy. $COP (+0,71 %)

- BERENBERG lowers the price target for JUNGHEINRICH from EUR 41 to EUR 39. Buy. $JUN3 (-0,74 %)

- JEFFERIES lowers the target price for SUSS MICROTEC from EUR 87 to EUR 75. Buy. $SMHN (+0,96 %)

Siemens takeover announcement $SIE (-0,16 %)
$ALTR (-0,5 %)

Summary

Acquisition price and value:

Siemens to acquire 100% of Altair Engineering for 113 USD per share which represents an enterprise value of approximately 10 billion USD is implied. This offer price corresponds to a 19 % premium to the unaffected closing price of Altair on October 21, 2024.

Financial impact:

The transaction is expected to be EPS (pre-PPA) accretive in the second year after closing. increasing and subsequently contribute significantly to earnings growth. Siemens expects significant cost synergies of over 150 million USD per year by the second year after closing. In addition, revenue synergies of an expected USD 500 million 500 million per year in the medium term, rising to more than USD 1 billion per year in the long term.

Strategic fit:

The acquisition is highly synergistic and enhances Siemens' position in the fast-growing PLM and EDA simulation market. It strengthens Siemens' comprehensive Digital Twin offering by adding Altair's capabilities in mechanical and electromagnetic simulation, data science and AI.

Financing:

The acquisition will be funded entirely in cash from Siemens' existing resources and is backed by the company's strong balance sheet and exceptional credit rating. The transaction is not subject to any financial conditions.

Timeline and conditions:

The transaction is expected to close in the second half of calendar year 2025, subject to customary closing conditions, including Altair shareholder approval and relevant regulatory approvals.

Siemens
$SIE (-0,16 %) plans to expand its software-business in order to establish itself as a digital and technology company.

At the Siemens Business Conference, CEO Roland Busch discussed with Bill Gates and Jensen Huang from Nvidia about artificial intelligence and digital twins, emphasizing the intention to invest more in digital technologies.

In this context, speculation is circulating about a possible takeover of the US software company Altair Engineering $ALTR (-0,5 %)which could involve a billion-dollar
acquisition acquisition.

Siemens did not wish to comment on these rumors.

The share price of Altair has risen in recent days as a result of this speculation, and other competitors such as PTC and Cadence Design could also be potential buyers.

However, the takeover process is still at an early stage. -Handelsblatt

Photo: Siemens

Digital lighthouse factories: Is only Siemens capable of digitalization?

Industrial Metaverse by

$SIE (-0,16 %)

AI, digital twins, robotics and the Industrial Metaverse - these were the ingredients that enabled Siemens Gerätewerk Erlangen to make it onto the World Economic Forum's list of digital lighthouse factories.

Only Siemens, with its appliance plant in Erlangen, shows that digitalization can be mastered at a comparable international level in Germany in 2024. The WEF recognized the plant for its Green Lean Digital strategy. With over 100 AI algorithms and the comprehensive use of digital twins based on a flexible and modular IT architecture, the site improved labor productivity by 69%, according to the WEF.

In addition, the time to market for new products was reduced by 40 percent and energy consumption was cut by 42 percent. The plant in Erlangen is already the third Siemens site, alongside the plants in Amberg, Germany, and Chengdu, China, to be recognized by the WEF as one of the most modern factories in the world.

Digital use cases

The appliance plant in Erlangen impressed the jury with five specific use cases of digital technologies in the manufacturing environment. Siemens particularly emphasized the power semiconductor production.

Within eleven months, it was possible to set up a clean room production facility that produces semiconductors for the latest generation of the SINAMICS frequency inverter. Thanks to an end-to-end data analysis platform, the space requirement was reduced by 50 percent and material consumption was cut by 40 percent - while maintaining the same performance and improving energy efficiency.

Siemens also announced last year that it would provide 500 million euros for research capacities and infrastructure in Erlangen. The Group intends to use this to establish the site as a global research and development center and nucleus for global technology activities relating to the industrial metaverse. "We are creating a blueprint for the industrial metaverse here," emphasizes Cedrik Neike, Member of the Managing Board of Siemens AG and CEO of Digital Industries.

https://www.computerwoche.de/article/3554263/digitale-leuchtturmfabriken-kann-nur-siemens-digitalisierung.html

⚙️ Giants of industry: Siemens, Schneider Electric, GE & ABB in a power comparison 💪

Company presentation

• Siemens AG: Headquartered in Germany, Siemens is a global player in the fields of electrification, automation and digitalization. The company operates in a wide range of sectors, including industry, energy, mobility and building technology, and drives technological innovation to increase efficiency and sustainability.

• Schneider Electric SE: The French company Schneider Electric specializes in solutions for energy management and automation. Schneider has a strong focus on sustainable energy and increasing efficiency in various industrial sectors, which gives them a leading position in the industry.

• General Electric (GE): GE is an American industrial conglomerate that focuses on aerospace, energy, healthcare and renewable energy. In recent years, GE has increasingly focused on the development of aviation and divested other businesses.

• ABB Ltd: ABB, based in Switzerland, is a provider of electrification and automation technologies. ABB is particularly known for its innovations in robotics and digital solutions, which have made the company an important partner for industry.

Historical development

• Siemens: Founded in 1847 by Werner von Siemens, the company evolved from a pioneer in telegraph technology to a global innovation leader in automation and electrification technology.
• Schneider Electric: Originally founded in 1836 as a railroad and armaments company, Schneider Electric transformed over time into a company specializing in power distribution and automation.
• GE: Since the merger of Edison General Electric and Thomson-Houston in 1892, GE has pioneered technology in many areas, particularly in aviation and power generation.
• ABB: ABB was formed in 1988 from the merger of Sweden's ASEA and Switzerland's BBC and has since become one of the leading companies in automation and power technology.

Business models

• Siemens: Siemens operates in several segments, including Digital Industries, Smart Infrastructure, Mobility and Siemens Financial Services. The company pursues a business model based on the use of innovative technologies to improve efficiency and sustainability.
• Schneider Electric: Schneider Electric's focus is on digital solutions for energy management and automation. Its business model relies heavily on digitalization to increase sustainability and efficiency.
• GE: GE specializes in cutting-edge technological products, especially in aviation. The company pursues a strategy of diversification, with a clear focus on breakthrough technologies.
• ABB: ABB offers a wide range of products and services in the fields of electrification and automation. Its business model aims to improve operations through innovative software and automation solutions.

Core competencies

• Siemens: Outstanding innovative strength in automation technology, digital infrastructure and mobility solutions.
• Schneider Electric: Market leadership in energy management solutions and digital automation technologies with a strong focus on sustainability.
• GE: Leading position in aviation technology.
• ABB: Expertise in industrial automation, robotics and digital solutions to increase industrial efficiency.

Future prospects and strategic initiatives

• Siemens: Siemens is increasingly focusing on digitalization and sustainable technologies. The "Siemens Xcelerator" initiative is driving the development of digital solutions for a wide range of industries.
• Schneider Electric: Schneider Electric is planning further investments in sustainable technologies and digital solutions to increase energy efficiency worldwide.
• GE: GE is focusing on spinning off non-strategic businesses to focus on aviation and energy.
• ABB: ABB is investing heavily in research and development in artificial intelligence and robotics to further improve its product range and remain at the forefront of industrial innovation.

Market position and competition

• The company
• Market position
• Main competitors

• Siemens

Leader in industrial automation

Strong competition with Schneider Electric

• Schneider Electric

Market leader in energy management

Competition from Siemens and ABB

• GE

Dominant in aviation technology

Competition with Boeing in the aviation sector

• ABB

Leader in industrial automation

Competition with Siemens and Schneider Electric

Total Addressable Market (TAM)

• Siemens: The TAM for digital infrastructure solutions is estimated at several trillion euros.
• Schneider Electric: Schneider Electric sees a TAM in energy management and automation also in the trillions.
• GE: The aviation industry's TAM is estimated at over $800 billion.
• ABB: Industrial automation TAM is in the hundreds of billions of dollars.

Share performance

• Siemens AG: TR 10 years 169%
• Schneider Electric: TR 10 years 395%
• GE Aerospace: TR 10 years 74%
• ABB Ltd: TR 10 years 229%

For the development (company figures), better view and more check out the free blog: https://topicswithhead.beehiiv.com/p/giganten-der-industrie-siemens-schneider-electric-ge-abb-im-kraftvergleich

Conclusion

In terms of capital efficiency, ABB is clearly the top choice, followed by Schneider Electric, and their valuations are quite similar. However, ABB's domicile in Switzerland makes it a bit more cumbersome to buy its shares.

Looking at the last ten years, Schneider Electric has achieved remarkable results and could be considered a solid choice.

When it comes to innovation potential, Siemens is the most exciting candidate. The brand has a long history and has not always been at the forefront of change, but it has a wide range of interesting businesses. Despite its size, Siemens still has spin-off potential - an option that is often denied but demanded by many shareholders. Such a spin-off could be particularly beneficial, as similar moves have often had a positive effect in the past. The Mobility division, for example, could develop a new, independent focus. In the range between 125 and 145 euros, the share is already very attractive, as the company has strong figures and a leading position in promising areas.

For a rational investment decision, Schneider Electric and ABB combined offer a compelling package - both companies are strongly positioned and cover broad areas of industry, while also delivering excellent financial values.

Personally, I would prefer ABB and Siemens, in which I have not yet invested. Schneider Electric has clearly outperformed, but being based in France brings challenges - from withholding tax to domestic political decisions. The argument that "political stock markets have short legs" does not always apply here, as these factors are sometimes important. In addition, Schneider Electric's diversification is quite concentrated, which doesn't quite fit my idea of an industrial giant. Nevertheless, the share is definitely recommendable.

General Electric (GE), on the other hand, is less interesting for me due to the company's complex structure. Even though the company has just repositioned itself in order to regain its former strength. However, the spin-offs GE Healthcare and Vernova as separate units are definitely interesting, even if they have less to do with the topic now.

In conclusion, Siemens and ABB are well-diversified industrial groups that are driving modernization and automation worldwide and benefiting directly from change. Even in important markets such as Germany, there is still some work to be done, but in the medium term, modernization will hardly be avoidable here either. Both Siemens and ABB are excellently positioned for these developments, as well as in dynamic regions such as the USA and China. So if you want shares in this sector, here is the go-to. Schneider E. for those who really don't want to do without and otherwise ABB or Siemens, with a slight majority for ABB.

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