SIEMENS GAMESA

Analysis of Siemens Gamesa share price

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You may have noticed that in recent years, so-called "polluting" energy sources are no longer supported by the world's governments. As a result, alternative energy companies are gaining momentum and are starting to make their way onto the stock market. This is the case for Siemens Gamesa, for example, and you can trade its shares online. Here are some useful explanations about it.

Elements that can influence the price of this asset:

Analysis N°1

Of course, one of the things you should be watching with the utmost attention is the growth of the wind power market. With the current climate issues, it is possible that this method of energy production will gain in popularity and that the market will therefore offer many opportunities to this Spanish company.

Analysis N°2

The market for other renewable energies will also be closely monitored, as will the market for oil and energy commodities such as natural gas or even coal, as well as, of course, nuclear energy.

Analysis N°3

As innovation is at the heart of the success of companies in this sector, we will follow with interest the developments underway at Siemens Gamesa, which may enable it to create more efficient production units and thus positively differentiate itself from the competition.

Analysis N°4

This competition will also be closely monitored during this fundamental analysis and we will therefore keep an eye on the major news of the large European and international companies in this sector of activity and on the distribution of market shares.

Analysis N°5

The signing of contracts or strategic partnerships between Siemens Gamesa and other companies are of course also events that you should take into account. These can enable the company to win new markets or expand its position in markets where it is already present.

Analysis N°6

The regulations of the countries in which the group operates may also be detrimental or favourable to Siemens Gamesa's activities, and any changes in these regulations will also have an impact.

Analysis N°7

Finally, we will of course be keeping a close eye on the figures communicated by Siemens Gamesa, whether it be the publication of its quarterly and annual results or the objectives that the group has set for the medium and long term or its order book.

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General presentation of Siemens Gamesa

The Siemens Gamesa Group (Gamesa Corporación Tecnológica) is currently one of the world leaders in the wind turbine manufacturing sector. However, its activity can be divided into two associated areas, mainly the design and manufacture of these wind turbines, which generates more than 80% of the turnover, and the operation and maintenance of these turbines.

Siemens Gamesa's market is international and mainly European and Mexican.

Analysis of Siemens Gamesa share price
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The major competitors of Siemens Gamesa

Let's now take a moment to find out what the competitive environment is for Siemens Gamesa in its industry with a presentation of the various major adversaries it faces.

Vestas Wind Systems

First of all, we should follow the company Vestas which is a Danish company specialized in the manufacture of wind turbines. The company is listed on the Copenhagen stock exchange. To date, the Vestas group has installed more than 59,909 machines worldwide with a capacity of 82 GW.

Goldwind

Another major competitor is the Chinese Goldwind Group which was established in 1998 and also specializes in the production of wind turbines. Goldwind is owned by the Chinese state and is therefore close to the country's political powers and was the world's leading producer in 2015. It is still among the largest in this sector today and is listed on the Shenzhen and Hong Kong stock exchanges. The group has 1,500 employees.

General Electric 

Of course, the American conglomerate General Electric is also a competitor of Siemens Gamesa. It operates 36 subsidiaries in 150 countries and is listed on the NYSE. The General Electric group divides its activities into four divisions

Envision Energy

This Shanghai-based company specializes in the supply of wind turbines and energy management software. It has already installed over 2,400 wind turbines worldwide and its software is used in over 6,000 wind turbines in North America, Europe, Latin America and China. Currently, Envision is positioned as the number 4 leading wind turbine supplier in the world.


The major partners of Siemens Gamesa

Let's now turn to the strategic allies of the Siemens Gamesa group, which we propose to discover through two recent examples of partnerships set up by the company.

Infosys

First and foremost and in February 2021, it is with the global leader in digital services and consulting Infosys that Siemens Gamesa has entered into a strategic partnership. Infosys Group has been chosen to implement SAP S / 4HABA to provide a globally harmonized ERP system that will enable Siemens Gamesa to become an agile global organization. This is an essential step towards Siemens Gamesa's digital transformation, which will improve its digital capabilities, its offering and its competitive positioning. As a matter of fact, both companies have collaborated in the development and construction of a solution model that has reduced redundancy in processes in record time. This solution was designed to improve efficiency throughout the value chain and reduce time to market.

Atos 

Another important partnership has been established in 2020 with the Atos Group who have extended an existing partnership since 2011 in order to accelerate Siemens' objectives in the areas of service modernization and digitalization, data-centric digital, cloud transformation and cybersecurity. The partnership includes a five-year, €3 billion agreement with Siemens AG, Siemens, Energu AG and Siemens Healthineers AG covering existing services and new business. With this agreement, Atos will invest in innovation and digital modernization in order to advance important innovation topics for Siemens.

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The factors in favour of a rise in the Siemens Gamesa share price:

Like all companies, the Siemens Gamesa Group has certain strengths that allow it to grow by facing the vagaries of the market, but it also has its weaknesses. That's why we're going to tell you more about its strengths and weaknesses and how they can affect the company's profitability.

Let's start by looking at the main strengths of this group today

  • Firstly, the positioning of the Siemens Gamesa group in its sector of activity is of course an undeniable asset, since it is one of the largest operators of renewable energies not only at national level but also at European level and, increasingly, at international level.
  • This brings us to the second strong point of this company, which concerns its international expansion strategy, which has accelerated considerably in recent years with the development of activities throughout the world.
  • The fact that Siemens Gamesa is mainly active in green energy is also an asset in itself, as this type of energy is set to increase in the energy mix in the years to come, given the current climate and environmental challenges.
  • We can also underline the fact that this group relies heavily on its ability to innovate in order to increase its profitability and popularity with its customers. It invests a lot of money every year in research and development and can thus stay ahead of its competitors.
  • Finally, it is also worth noting that Siemens Gamesa regularly enters into strategic partnerships with other companies with the aim of making more profit and moving faster in certain markets.
The factors in favour of a drop in the Siemens Gamesa share price:

While Siemens Gamesa has many strengths to face the coming years, don't forget that the group also has its weaknesses. It is these weaknesses that we will now analyse:

  • Firstly, and although Siemens Gamesa is one of the leaders in its sector of activity today, it must face up to the arrival on the market of new competitors who are potentially dangerous for its market share. These are, of course, the major companies in the oil and gas sector, which are tending to reorient their activities towards this future segment.
  • Finally, it should also be pointed out that Siemens Gamesa's production costs are relatively high and it will therefore take some time for its investments to bear fruit.

When analyzing this stock, always consider these strengths and weaknesses to understand the impact of other factors.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

When did Gamesa merge with Siemens?

It was in 2016 that Siemens and Gamesa merged their wind power businesses. The new group is then 59% owned by Siemens, which will pay an extraordinary dividend of 1 billion euros to the shareholders of the Spanish company. The merger of these two entities has of course created one of the giants of the wind energy sector in the world and has made Gamesa a real heavyweight in green energy.

Are Siemens Gamesa shares part of a major stock market index?

As you may know, Siemens Gamesa is currently one of the largest groups listed on the Spanish stock market. Thanks to its strong development and rapid growth from its inception to the present day, Siemens Gamesa is now also one of the country's largest capitalisations. It is therefore a logical choice for inclusion in the Spanish benchmark stock market index, the Ibex 35.

How do you know if Siemens Gamesa's share price will go up or down?

The best way to know in which direction the Siemens Gamesa share price will progress in the short, medium or long term is of course to carry out quality and relevant analyses of this stock. In particular, we combine fundamental analysis, which is based on the study of news and major publications, with technical analysis, which is based on charts.

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