Schneider Electric (SU) AI Stock Analysis

• Market Cap: €120.92B
• Dividend Yield: 1.57%
• Average Volume (3M): 897.78K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 1.24
• Revenue Growth: 6.27%
• EPS Growth: 6.48%
• Country: FR
• Employees: 155,822
• Sector: Energy
• Sector Strength: 55
• Industry: Industrial - Machinery
• EPS (TTM): 7.61
• Shares Outstanding: 575,631,650
• 10 Day Avg. Volume: 976,871
• 30 Day Avg. Volume: 897,778
• PEG Ratio: 2.57
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €250.33
• Price Target Upside: 15.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 67 Neutral
• Price Target: €239.00 ▲(10.62%Upside)

The overall stock score is primarily driven by Schneider Electric's strong financial performance, which indicates a healthy and growing company. However, the technical analysis suggests mixed short-term trends, and the high P/E ratio indicates potential overvaluation, slightly offsetting the financial strengths.

Positive Factors

Growth Potential

Schneider Electric's backlog, excluding long cycle orders, increased by 11% year over year, supporting future growth.

Guidance and Forecast

Schneider Electric's stock increased by approximately 5% after the release of its 2025 guidance.

Negative Factors

Stock Performance

Following the announcement of DeepSeek’s R1 model, Schneider shares have sold off by ~12%.

Valuation Concerns

Schneider derated from a 29x fwd PE to 24x as of the close on 28 January, implying a reduction in EPS CAGR of 4.5%.

Schneider Electric Business Overview & Revenue Model

Company Description

Schneider Electric S.E. provides energy and automation digital solutions worldwide. It operates through two segments, Energy Management and Industrial Automation. The company offers busway and cable support products, circuit breakers and switches, contactors and protection relays, electrical protection and control products, energy management software solutions, transfer switches, surge protection and power conditioning products, power monitoring and control products, power quality and power factor correction products, pushbuttons, switches, pilot lights and joysticks, software products, and switchboards and enclosures. It also provides access control, building management, fire detection, sensors and room units, valve and valve actuator, and variable and frequency speed drive. In addition, the company offers feeder automation, grid automation and SCADA software products, medium voltage switchgears and transformers, outdoor equipment, substation automation products, and switchgear components. Further, it provides critical power and cooling services, data center software, IT power distribution products, prefabricated data center modules, racks and accessories, and security and environmental monitoring products; home automation and security, installation materials and systems, light switches and electrical sockets, and uninterruptible power supply products; and human machine interface, industrial automation software, industrial communication, measurement and instrumentation, motion control and robotics, signaling units, programmable logic and automation controllers, power supply and protection, process control and safety, RFID systems, signaling devices, and other industrial automation and control products, as well as solar and energy storage. The company was founded in 1836 and is headquartered in Rueil-Malmaison, France.

How the Company Makes Money

Schneider Electric generates revenue through several key streams: the sale of products such as electrical components and automation systems, the provision of software solutions for energy management and automation, and offering services that include consulting, maintenance, and digital transformation support. The company capitalizes on its strong global presence and extensive distribution network to reach a diverse customer base, from large industrial enterprises to small businesses and residential customers. Strategic partnerships and acquisitions also play a significant role in expanding its market share and technological capabilities, contributing to its overall earnings.

Schneider Electric Financial Statement Overview

Summary

Schneider Electric demonstrates strong financial health with robust revenue growth, stable profitability metrics, and efficient operational performance. The balance sheet shows a manageable debt-to-equity ratio and effective use of shareholder funds. Cash flow generation is strong, supporting operations and growth initiatives.

Income Statement

Schneider Electric has demonstrated strong and consistent revenue growth, with a revenue increase from EUR 25.16 billion in 2020 to EUR 38.15 billion in 2024, representing a robust growth trajectory. The company maintains healthy profitability metrics, including a stable gross profit margin above 40% and an improving net profit margin, reaching 11.2% in 2024. EBIT and EBITDA margins are also solid, indicating efficient operational performance.

Balance Sheet

The company's balance sheet shows strength with a manageable debt-to-equity ratio, which has improved from 0.56 in 2020 to 0.53 in 2024. With a return on equity (ROE) of 14% in 2024, Schneider Electric displays effective use of shareholder funds. The equity ratio remains healthy, indicating a stable financial position with adequate equity buffer.

Cash Flow

Schneider Electric's cash flow generation is robust, with strong operating cash flow and free cash flow growth over the years. The free cash flow to net income ratio remains favorable, highlighting efficient conversion of earnings into cash flow. The operating cash flow to net income ratio is consistent, supporting the company's ability to fund operations and growth initiatives.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.15B	35.90B	34.18B	28.91B	25.16B
Gross Profit	16.27B	14.62B	13.40B	11.35B	9.86B
EBITDA	8.02B	7.19B	6.31B	5.97B	4.18B
Net Income	4.27B	4.00B	3.48B	3.20B	2.13B
Balance Sheet
Total Assets	65.94B	58.90B	58.37B	54.55B	49.48B
Cash, Cash Equivalents and Short-Term Investments	6.89B	4.70B	3.99B	2.63B	6.91B
Total Debt	16.31B	13.93B	11.73B	10.84B	11.49B
Total Liabilities	34.66B	31.73B	32.27B	26.44B	25.75B
Stockholders Equity	30.49B	26.46B	25.44B	24.44B	20.62B
Cash Flow
Free Cash Flow	4.63B	4.54B	3.26B	2.74B	3.62B
Operating Cash Flow	5.58B	5.91B	4.35B	3.62B	4.43B
Investing Cash Flow	-1.99B	-5.75B	-1.48B	-5.59B	-2.11B
Financing Cash Flow	-1.62B	879.00M	-1.38B	-2.67B	1.44B

Schneider Electric Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 216.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:SU, the sentiment is Negative. The current price of 216.05 is below the 20-day moving average (MA) of 220.62, below the 50-day MA of 216.06, and below the 200-day MA of 229.08, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 44.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:SU.

Schneider Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$14.70B	9.57	6.41%	5.37%	4.12%	-71.24%
SU	67 Neutral	€120.92B	28.30	14.99%	1.57%	6.27%	6.48%
0NDA		€760.79M	6.18	13.03%	5.49%	―	―
0FOS		€157.87M	14.80	3.56%	1.33%	―	―
EKN		€203.64M	14.63	5.68%	3.43%	―	―

Schneider Electric Corporate Events

Schneider Electric Files 2024 Universal Registration Document

Schneider Electric has filed its 2024 Universal Registration Document with the French financial markets authority, which includes comprehensive reports on financial performance, corporate governance, sustainability, and auditor fees. This filing underscores Schneider Electric’s commitment to transparency and regulatory compliance, potentially impacting its market positioning by reinforcing stakeholder trust and highlighting its focus on sustainability.