PEG Ratio (Five-Year Expected): 0.28
Project Five-Year Earnings Growth: 60%
Siemens (SI) investors have had quite the ride during the past decade. The integrated technology company was pounded by the recession, recovered, then stumbled big-time in mid-2011 and has been moving sideways ever since. That includes this year — SI is fractionally in the red so far in 2013 amid expectations for a 10% decline in earnings this year.
As The Wall Street Journal explained this summer, Siemens has “disappointed investors in recent years with cost overruns and charges in the billions of euros.
Still, even amid those struggles, Siemens looks like a value stock. The company — which deals in the fields of industry, energy and healthcare and makes products like turbines, lighting products and even trains — is currently trading for a PEG ratio of 0.28.
Plus, Siemens did post some promising long-term signs along with its recent earnings miss. Orders improved 19% year-over-year in the most recent period thanks to major long-cycle contracts for trains and maintenance, all while order backlogs hit a new high.
That should help Germany’s No. 2 company by revenue meet the analyst consensus for a 42% jump in the bottom line next year. Toss in the 60% annual growth expected through 2018, and this so-so stock looks a lot more appealing.