Buffett Brain · Research note
Score updated 21 Oct 2026 · analysis from 6 Oct 2026
ENR.DE· Industrials
Siemens Energy
Siemens Energy's valuation at a P/E of 92.4 and an EV/EBIT of 50.1 is far too high given its weak profitability metrics.
Buffett fit
Weak fit
Owner
4
Durability
57
Management
63
Price
5
Score updated 21 Oct 2026 · analysis from 6 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Siemens Energy, we'd be concerned about the low profitability and high valuation.
The full reasoning comes with a free account.
The business faces challenges such as technological shifts in energy production and regulatory changes, which could impact its long-term durability.
The full reasoning comes with a free account.
The share count CAGR of 7.01% indicates dilution, and there's no clear evidence of effective .
The full reasoning comes with a free account.
The current valuation is not justified given the earnings yield of 1.08% and yield of 3.14%.
The full reasoning comes with a free account.
Free account
Read the full Siemens Energy analysis free
- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
3 full analyses a week · no card needed
For and against
The strongest points on each side, with the numbers behind them.
In its favor
4- 1Revenue of $39.08B indicates a large scale of operations.
- 2Net debt/EBITDA of -1.24 suggests strong financial health.
- 3Interest coverage of 8.6 shows ability to cover interest expenses comfortably.
- 4/Net income ratio of 2.90 indicates strong cash generation relative to reported earnings.
Concerns
6- 1 of 92.4 suggests the stock is priced for perfection.
- 2 of 4.02% is well below the sector's top quintile of 17.8%.
- 3 of 16.84% is significantly below the sector top quintile of 43.4%.
- 4 (5y avg) of 1.5% is far below the sector's top quintile of 13.9%.
Price history
$130+425.1%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Siemens Energy AG operates in the energy technology sector, providing gas and steam turbines, generators, and related services. It operates through segments like Gas Services and Siemens Gamesa. The company generated $39.08B in revenue with a net income of $1.41B. However, with a of 16.84% and an of 4.02%, its unit economics are not particularly strong.
How this analysis has moved
The call has held across 3 reviews.
Oct 11, 2026 → Oct 21, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Industrials
Free weekly email
Liked the read on ENR.DE? Get the next ones on Monday.
Every Monday: the stocks most of the seven investors newly agree on. One email, unsubscribe any time.
Research, not investment advice.
See the Buffett analysis of Siemens Energy
The score, the checklist and the full reasoning open with a free account. You get 3 full analyses a week, and this stock is the first one. No card needed.
Create a free account3 full analyses a week · no card needed
Already have an account? Sign in