Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, German industrial giant Siemens (NYSE: SI ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Siemens' business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Munich (1847)|
|Market Cap||$83.1 billion|
|Trailing-12-Month Revenue||$95.8 billion|
|Management||CEO Peter Loescher (since 2007)
CFO Joe Kaeser (since 2006)
|Return on Equity (Average, Past 3 Years)||15.8%|
|Cash/Debt||$18.4 billion / $23.4 billion|
|Competitors||ABB (NYSE: ABB )
General Electric (NYSE: GE )
United Technologies (NYSE: UTX )
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 842 members who have rated Siemens believe the stock will outperform the S&P 500 going forward. These bulls include mwlove and fellow Fool Rich Smith (TMFDitty), who is ranked in the top 1% of our community.
Earlier this fall, mwlove tapped Siemens as a timely turnaround opportunity: "A solid industrial with a great dividend. Beaten-down in recent months, but ready to rise again."
In fact, Siemens currently sports a cheapish P/E of 10.4. That represents a discount to industry peers like ABB (13.6), General Electric (13.2), and United Technologies (13.7).
CAPS All-Star TMFDitty elaborates on the Siemens bull case:
I'm suspicious of the 33% growth rate that Yahoo Finance is quoting on this stock. That said, 12 times free cash flow is not too high a price to pay for Germany's "mini-GE." And the company pays me a nice 4.1% divvy while I wait for Mr. Market to notice the value here.
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