Schneider Electric (SU) AI Stock Analysis

• Market Cap: €132.83B
• Dividend Yield: 1.65%
• Average Volume (3M): 860.47K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.24
• Revenue Growth: 6.27%
• EPS Growth: 6.48%
• Country: FR
• Employees: 155,822
• Sector: Energy
• Sector Strength: 51
• Industry: Industrial - Machinery
• EPS (TTM): 4.54
• Shares Outstanding: 577,122,500
• 10 Day Avg. Volume: 785,198
• 30 Day Avg. Volume: 860,474
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: €249.33
• Price Target Upside: 5.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: €261.00 ▲(10.55%Upside)

The overall stock score for Schneider Electric is driven primarily by robust financial performance, including consistent revenue growth and strong cash flow, along with positive technical indicators. The valuation is somewhat high, but justified by the company's growth prospects. Absence of recent earnings call and corporate event data limits further insight.

Positive Factors

AI and Data Centers

Schneider’s balanced data center offering means it is well-placed for the next phase in data center AI build out and is relatively less dependent on specialized cooling.

Growth and Demand

Energy Management's growth of 11.5% for the year highlights strong demand and increased capacity.

Guidance and Shareholder Returns

Schneider Electric is expected to deliver an annual 20% total shareholder return over the medium term.

Negative Factors

Market Expectations

The market is currently pricing in something like 11% growth for data centers and 6% for utilities, and consequently a 6.4% overall topline growth rate, below Schneider’s own 7-10% target.

Stock Performance

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

Schneider Electric Business Overview & Revenue Model

Company Description

Schneider Electric SE is a global leader in energy management and automation solutions, operating primarily in the industrial, infrastructure, and building sectors. The company offers a comprehensive range of products and services, including electrical distribution, automation and control, building management, and critical power and cooling services. Schneider Electric is committed to sustainability and innovation, providing solutions that help customers manage energy and process in ways that are safe, reliable, efficient, and sustainable.

How the Company Makes Money

Schneider Electric generates revenue through the sale of its diverse portfolio of products and services aimed at improving energy management and automation. The company's primary revenue streams include the sales of electrical products, industrial automation solutions, and energy management systems. Additionally, Schneider Electric offers software and digital services that enhance the efficiency and sustainability of energy usage across various sectors. The company also benefits from long-term service agreements and maintenance contracts, which provide ongoing revenue. Significant partnerships with businesses, governments, and other organizations worldwide further bolster Schneider Electric's market presence and revenue potential, as these collaborations often lead to large-scale projects that require comprehensive energy solutions.

Schneider Electric Financial Statement Overview

Summary

Schneider Electric demonstrates strong financial health with consistent revenue and profit growth, efficient operational performance, and a stable financial position. Debt levels are manageable, and strong cash flow supports further growth and debt reduction.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Schneider Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 236.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 236.1 is above the 20-day moving average (MA) of 229.18, above the 50-day MA of 224.39, and above the 200-day MA of 228.78, indicating a bullish trend. The MACD of 4.15 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 73.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:SU.

Schneider Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTU	79 Outperform	€815.13M	6.69	13.03%	5.87%	-7.50%	-15.01%
SU	77 Outperform	€132.83B	31.01	14.99%	1.65%	6.27%	6.48%
Sector *	67 Neutral	$15.31B	9.88	6.83%	5.21%	4.41%	-68.95%

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.