Schneider Electric (SU) AI Stock Analysis

• Market Cap: €134.60B
• Dividend Yield: 1.65%
• Average Volume (3M): 914.69K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.26
• Revenue Growth: 7.89%
• EPS Growth: 11.06%
• Country: FR
• Employees: 155,822
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.97
• Shares Outstanding: 577,122,500
• 10 Day Avg. Volume: 710,297
• 30 Day Avg. Volume: 914,686
• PEG Ratio: 4.14
• Price to Book (P/B): 4.43
• Price to Sales (P/S): 3.54
• P/FCF Ratio: 29.17
• 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: €262.48
• Price Target Upside: 11.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €277.00 ▲(17.55% Upside)

Schneider Electric's strong financial performance is the most significant factor, supported by consistent revenue and profit growth, efficient operations, and a stable financial position. Technical analysis indicates a positive trend, although valuation metrics suggest the stock is relatively expensive. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Schneider Electric's consistent revenue growth highlights its strong market position and ability to meet growing demand for energy management solutions.

Cash Flow Generation

Strong cash flow generation enhances Schneider Electric's ability to invest in growth initiatives and maintain financial flexibility, supporting long-term sustainability.

Profitability Metrics

Healthy profitability metrics indicate efficient operations and strong competitive positioning, contributing to Schneider Electric's long-term financial health.

Negative Factors

Debt Levels

While debt levels are manageable, continuous monitoring is essential to ensure they do not hinder financial flexibility or investment capacity in the future.

Dividend Yield

A modest dividend yield might not attract income-focused investors, potentially limiting the investor base interested in Schneider Electric's stock.

Valuation Concerns

High valuation may limit upside potential and make the stock less attractive compared to peers, impacting investor sentiment over the medium term.

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 multiple key streams, primarily by selling products and solutions in energy management and automation. The company’s offerings include hardware such as circuit breakers, transformers, and sensors, as well as software solutions that enable real-time monitoring and management of energy consumption. Additionally, Schneider Electric earns income from services such as consulting, system integration, and maintenance contracts. Significant partnerships with technology firms and collaborations in Smart City initiatives enhance its revenue potential. The company's focus on sustainability and energy efficiency also aligns with growing market demands, contributing to its earnings.

Schneider Electric Financial Statement Overview

Summary

Schneider Electric demonstrates strong financial health across its income statement, balance sheet, and cash flow. The company exhibits consistent revenue and profit growth, efficient operational performance, and a stable financial position. While debt levels are manageable, continued focus on leveraging its strong cash flow to reduce debt and invest in growth will enhance its financial flexibility further.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.32B	38.15B	35.90B	34.18B	28.91B	25.16B
Gross Profit	16.58B	16.27B	14.62B	13.40B	11.35B	9.86B
EBITDA	7.65B	8.02B	7.19B	6.40B	5.75B	4.23B
Net Income	4.30B	4.27B	4.00B	3.48B	3.20B	2.13B
Balance Sheet
Total Assets	61.97B	65.94B	58.90B	58.37B	54.55B	49.48B
Cash, Cash Equivalents and Short-Term Investments	4.01B	6.89B	4.70B	3.99B	2.63B	6.91B
Total Debt	17.07B	16.31B	13.93B	11.73B	10.84B	11.49B
Total Liabilities	34.19B	34.66B	31.73B	32.27B	26.44B	25.75B
Stockholders Equity	26.95B	30.49B	26.46B	25.44B	24.44B	20.62B
Cash Flow
Free Cash Flow	4.20B	4.63B	4.54B	3.26B	2.74B	3.62B
Operating Cash Flow	5.25B	5.58B	5.91B	4.35B	3.62B	4.43B
Investing Cash Flow	-3.10B	-1.99B	-5.75B	-1.48B	-5.59B	-2.11B
Financing Cash Flow	-2.41B	-1.62B	879.00M	-1.38B	-2.67B	1.44B

Schneider Electric Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 235.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 235.65 is below the 20-day moving average (MA) of 244.22, below the 50-day MA of 240.61, and above the 200-day MA of 225.62, indicating a neutral trend. The MACD of -2.25 indicates Positive momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 46.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:SU.

Schneider Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SU	75 Outperform	€134.60B	31.22	15.76%	1.65%	7.89%	11.06%
ALPM	73 Outperform	€160.03M	14.53	11.66%	2.01%	3.35%	242.49%
MTU	69 Neutral	€688.84M	9.46	7.79%	6.94%	-12.27%	-55.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%