Schneider Electric (SU) AI Stock Analysis

• Market Cap: €118.60B
• Dividend Yield: 1.85%
• Average Volume (3M): 885.37K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.28
• Revenue Growth: 7.89%
• EPS Growth: 11.06%
• Country: FR
• Employees: 155,822
• Sector: Industrials
• Sector Strength: 79
• Industry: Industrial - Machinery
• EPS (TTM): 3.97
• Shares Outstanding: 577,122,500
• 10 Day Avg. Volume: 684,658
• 30 Day Avg. Volume: 885,372
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €246.22
• Price Target Upside: 16.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 68 Neutral
• Price Target: €235.00 ▲(11.48% Upside)

Schneider Electric's strong financial performance is the most significant factor, contributing positively to the overall score. However, the technical analysis indicates potential bearish momentum, and the high P/E ratio suggests the stock may be overvalued, which tempers the overall score.

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 is a global leader in digital transformation of energy management and automation, operating in various sectors including buildings, data centers, infrastructure, and industries. The company offers a wide range of products and services such as electrical distribution equipment, industrial automation solutions, and software for energy management. Schneider Electric focuses on sustainability and efficiency, helping customers optimize their energy usage and reduce their carbon footprint.

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 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	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: 210.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 210.8 is below the 20-day moving average (MA) of 219.29, below the 50-day MA of 223.45, and below the 200-day MA of 226.98, indicating a bearish trend. The MACD of -3.31 indicates Positive momentum. The RSI at 38.80 is Neutral, neither overbought nor oversold. The STOCH value of 12.44 is Positive, 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
SU	68 Neutral	€118.60B	27.83	15.76%	1.85%	7.89%	11.06%
Sector *	64 Neutral	$10.95B	16.10	8.81%	1.99%	2.59%	-16.41%
0NDA	―	€730.94M	10.72	7.79%	―	―	―
0FOS	―	€155.70M	14.35	11.78%	―	―	―
EKN	―	€209.02M	15.21	5.70%	―	―	―

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.