Schneider Electric (SU) AI Stock Analysis

• Market Cap: €134.60B
• Dividend Yield: 1.66%
• 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: €269.91
• Price Target Upside: 14.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €236.00 ▲(0.21% Upside)

Schneider Electric's strong financial performance is the primary driver of its stock score, reflecting robust revenue and profit growth. However, technical analysis indicates bearish momentum, and the valuation suggests the stock is relatively expensive, which tempers the overall 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 SE is a global leader in digital transformation of energy management and automation, operating across various sectors including buildings, data centers, infrastructure, and industrial processes. The company offers a wide range of products and services, including energy management software, automation solutions, and connected devices, aimed at enhancing efficiency and sustainability for its customers. Schneider Electric's commitment to innovation is reflected in its focus on IoT, edge computing, and smart technologies that drive productivity and sustainability across industries.

How the Company Makes Money

Schneider Electric generates revenue through several key streams, primarily from the sale of products and services related to energy management and automation. This includes hardware sales, such as circuit breakers, relays, and controllers, as well as software solutions that facilitate energy efficiency and automation processes. The company also earns revenue from consulting services, system integration, and maintenance contracts. Significant partnerships with other technology firms, utilities, and industrial companies enhance Schneider Electric's market reach and capabilities, contributing to its earnings. Additionally, the growing demand for sustainable energy solutions and digital transformation initiatives across various industries provides a favorable environment for Schneider Electric's continued revenue growth.

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: Positive
• Last Price: 235.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 235.5 is above the 20-day moving average (MA) of 230.51, below the 50-day MA of 240.20, and above the 200-day MA of 224.85, indicating a neutral trend. The MACD of -1.80 indicates Negative momentum. The RSI at 52.83 is Neutral, neither overbought nor oversold. The STOCH value of 81.94 is Negative, 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
ALPM	73 Outperform	€154.08M	13.99	11.66%	1.93%	3.35%	242.49%
MTU	69 Neutral	€743.95M	10.22	7.79%	6.43%	-12.27%	-55.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SU	62 Neutral	€134.60B	31.22	15.76%	1.66%	7.89%	11.06%