Fact based stock research
Siemens Gamesa Renewable Energy (BME:SGRE)

ES0143416115

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Siemens Gamesa Renewable Energy stock research in summary

siemensgamesa.comes-es

ANALYSIS: With an Obermatt Combined Rank of 13 (worse than 87% compared with investment alternatives), Siemens Gamesa Renewable Energy (Heavy Electrical Equipment, Spain) shares have lower financial characteristics compared with similar stocks. Shares of Siemens Gamesa Renewable Energy are low in value (priced high) with a consolidated Value Rank of 39 (worse than 61% of alternatives), show below-average growth (Growth Rank of 18), and are riskily financed (Safety Rank of 4), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 13, is a sell recommendation based on Siemens Gamesa Renewable Energy's financial characteristics. As the company Siemens Gamesa Renewable Energy's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 39), low growth (Obermatt Growth Rank of 18), and risky financing practices (Obermatt Safety Rank of 4), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	39
Growth Rank	18
Safety Rank	4
Combined Rank	13

Country	Spain
Industry	Heavy Electrical Equipment
Index	IBEX 35, Renewables Users, Sound Pay Europe, Wind Energy
Size class	X-Large

This stock has achievements: Top 10 Stock.

25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Siemens Gamesa Renewable Energy

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	20	38	39	39
GROWTH
GROWTH	15	35	23	18
SAFETY
SAFETY	1	7	11	4
SENTIMENT
SENTIMENT	n/a	4	1	^new
360° VIEW
360° VIEW	n/a	1	16	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Siemens Gamesa Renewable Energy is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	20	38	39	39
GROWTH
GROWTH	15	35	23	18
SAFETY
SAFETY	1	7	11	4
COMBINED
COMBINED	5	8	13	13

Last update of combined financial performance: 16-Mar-2023. Stock analysis on combined financial performance: The higher the rank of Siemens Gamesa Renewable Energy the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 39 (worse than 61% compared with alternatives), Siemens Gamesa Renewable Energy shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Siemens Gamesa Renewable Energy. Price-to-Sales (P/S) is 55, which means that the stock price compared with what market professionals expect for future sales is lower than 55% of comparable companies, indicating a good value concerning to Siemens Gamesa Renewable Energy's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 1, meaning that dividends are expected to be lower than for 99% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 64% of alternatives (only 36% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 94% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 39, is a hold recommendation based on Siemens Gamesa Renewable Energy's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Siemens Gamesa Renewable Energy could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Siemens Gamesa Renewable Energy looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	69	64	55	55
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	3	6	6	6
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	37	53	36	36
DIVIDEND YIELD
DIVIDEND YIELD	1	37	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	20	38	39	39

Last update of Value Rank: 16-Mar-2023. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Siemens Gamesa Renewable Energy; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 18 (better than 18% compared with alternatives), Siemens Gamesa Renewable Energy shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Siemens Gamesa Renewable Energy. Profit Growth has a rank of 75, which means that currently professionals expect the company to grow its profits more than 75% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 64 (above 64% of alternative investments). But Sales Growth has a below the median rank of 19, which means that, currently, professionals expect the company to grow less than 81% of its competitors, and Capital Growth also has a lower rank of 23. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 18, is a sell recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Siemens Gamesa Renewable Energy. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	31	48	11	19
PROFIT GROWTH
PROFIT GROWTH	n/a	89	69	75
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	27	23
STOCK RETURNS
STOCK RETURNS	18	9	49	64
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	15	35	23	18

Last update of Growth Rank: 25-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Siemens Gamesa Renewable Energy.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 4 (better than 4% compared with alternatives), the company Siemens Gamesa Renewable Energy has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Siemens Gamesa Renewable Energy is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Siemens Gamesa Renewable Energy. Liquidity is at 13, meaning that the company generates less profit to service its debt than 87% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 31, meaning the company has an above-average debt-to-equity ratio. It has more debt than 69% of its competitors. Finally, Refinancing is at a rank of 4 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 96% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 4 (worse than 96% compared with alternatives), Siemens Gamesa Renewable Energy has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Siemens Gamesa Renewable Energy because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	41	38	32	31
REFINANCING
REFINANCING	2	1	7	4
LIQUIDITY
LIQUIDITY	1	17	14	13
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	1	7	11	4

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Siemens Gamesa Renewable Energy and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	3	2	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	39	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	46	20	^new
MARKET PULSE
MARKET PULSE	n/a	1	1	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	4	1	^new

Last update of Sentiment Rank: 9-Mar-2023. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Siemens Gamesa Renewable Energy.
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