Siemens Receives 'Hold' Rating from MarketsMOJO Amid Bullish Stock Performance

Siemens, a leading capital goods company, has recently received a 'Hold' rating from MarketsMOJO. This downgrade comes as the company's stock has been performing in a mildly bullish range and its technical factors, such as MACD and KST, are also showing bullish signs.
One of the reasons for the 'Hold' rating is the company's low Debt to Equity ratio, which is at 0 times on average. However, Siemens has consistently declared positive results for the last 10 consecutive quarters, with its ROCE (HY) reaching a high of 22.55% and its cash and cash equivalents (HY) at Rs 7,652.50 crore.

The majority shareholders of Siemens are its promoters, and the company has shown consistent returns over the last 3 years. In the past year alone, the stock has generated a return of 98.20%, outperforming the BSE 500 index. With a market cap of Rs 2,57,181 crore, Siemens is the second largest company in the capital goods sector, making up 19.14% of the entire sector. Its annual sales of Rs 21,586.30 crore account for 5.35% of the industry.

However, the company has shown poor long-term growth, with net sales growing at an annual rate of 9.86% over the last 5 years. With a ROE of 16.8, Siemens has a very expensive valuation with a price to book value of 17.9. The stock is currently trading at a premium compared to its average historical valuations. While the stock has generated a high return in the past year, its profits have only risen by 33.1%, resulting in a PEG ratio of 3.1.

Overall, while Siemens remains a strong player in the capital goods industry, its current stock performance and valuation suggest a 'Hold' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.