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Schneider Electric (SBGSY)
:SBGSY
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Schneider Electric SE
(OTC:SBGSY)
78Outperform
Schneider Electric SE (SBGSY) vs. S&P 500 (SPY)
Market Cap
$135.61B
Dividend Yield1.05%
Average Volume (3M)36.01K
Price to Earnings (P/E)29.4
Beta (1Y)1.21
Revenue Growth6.33%
EPS Growth6.55%
CountryUS
Employees155,822
SectorIndustrials
Sector Strength64
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.65
Shares Outstanding2,878,158,400
10 Day Avg. Volume0
30 Day Avg. Volume36,007
Financial Highlights & Ratios
PEG Ratio4.49
Price to Book (P/B)N/A
Price to Sales (P/S)2.52
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Schneider Electric SE Business Overview & Revenue Model
Company DescriptionSchneider Electric SE, headquartered in France, is a global leader in energy management and automation solutions. The company operates across multiple sectors, including energy and infrastructure, industry, buildings, and data centers. Schneider Electric provides a wide range of products and services, such as electrical distribution, industrial automation, and control, energy-efficient solutions, and critical power and cooling services for IT and telecom systems.
How the Company Makes MoneySchneider Electric makes money through its diversified portfolio of products and services that cater to various industries. The company's revenue streams are primarily driven by the sales of energy management and automation solutions. Key revenue sources include the sale of electrical distribution and control products, industrial automation systems, and software solutions that enhance operational efficiency and reduce energy consumption. Schneider Electric also generates income through its service offerings, which include consulting, support, and maintenance services that help clients optimize their energy usage and reduce operational costs. Additionally, strategic partnerships and acquisitions enhance Schneider Electric's capabilities and market reach, contributing to its financial performance.
Schneider Electric SE Financial Statement Overview
Summary
Schneider Electric SE demonstrates robust financial health with consistent revenue and profitability growth. The company maintains effective cost management and operational efficiency, as evidenced by strong profit margins. A balanced leverage position and efficient cash management highlight solid financial performance, despite a slight increase in debt levels.Income Statement
Schneider Electric SE has demonstrated a strong financial performance in its income statement. The company has experienced consistent revenue growth, with the latest year showing a revenue increase of 6.27%. The gross profit margin stands at approximately 42.63%, indicating effective cost management. The net profit margin is 11.19%, reflecting solid profitability. EBIT and EBITDA margins are also robust at 16.90% and 19.38%, respectively, underscoring operational efficiency.88
Very Positive
Balance Sheet
The balance sheet of Schneider Electric SE is strong, with a reasonable debt-to-equity ratio of 0.54, indicating moderate leverage. The return on equity is a healthy 14.00%, showing effective use of shareholder funds. The equity ratio is 46.23%, suggesting a strong equity position relative to total assets. However, the increase in total debt over the years should be monitored.82
Very Positive
Cash Flow
Schneider Electric SE shows a positive cash flow performance. The free cash flow growth rate is 1.94%, indicating steady cash generation. The operating cash flow to net income ratio is 1.31, which is favorable and shows good cash conversion. Additionally, the free cash flow to net income ratio of 1.08 demonstrates efficient cash management. Overall, the company maintains a solid cash flow position.85
Very Positive
| 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 | 13.88B | 11.84B | 10.16B | EBIT |
| 6.45B | 5.93B | 4.93B | 4.33B | 3.09B | EBITDA |
| 7.39B | 7.19B | 6.40B | 5.75B | 4.23B | Net Income Common Stockholders |
| 4.27B | 4.00B | 3.48B | 3.20B | 2.13B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.89B | 4.70B | 3.99B | 2.63B | 6.91B | Total Assets |
| 65.94B | 58.90B | 58.37B | 54.55B | 49.48B | Total Debt |
| 16.31B | 13.93B | 10.46B | 9.75B | 10.46B | Net Debt |
| 9.43B | 9.24B | 6.48B | 7.13B | 3.56B | 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 | -1.41B | -5.17B | -3.25B | Financing Cash Flow |
| -1.62B | 879.00M | -1.45B | -3.09B | 2.58B |
Schneider Electric SE Technical Analysis
Neutral
48.45
Price Trends
48.20
Positive
49.71
Negative
50.05
Negative
Market Momentum
-0.26
Negative
55.79
Neutral
91.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBGSY, the sentiment is Neutral. The current price of 48.45 is above the 20-day moving average (MA) of 45.49, above the 50-day MA of 48.20, and below the 200-day MA of 50.05, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 91.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SBGSY.
Schneider Electric SE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $135.61B | 29.42 | 15.19% | 1.05% | 6.33% | 6.55% | |
76 Outperform | $104.57B | 28.10 | 20.23% | 1.40% | 7.25% | 18.36% | |
74 Outperform | $71.02B | 20.67 | 110.24% | 2.49% | -1.30% | 20.26% | |
70 Outperform | $56.27B | 23.73 | 9.66% | 2.08% | 10.29% | 22.72% | |
67 Neutral | $28.10B | 30.93 | 26.22% | 2.13% | -11.28% | -23.69% | |
66 Neutral | $76.85B | 24.69 | 25.87% | 1.12% | 0.41% | 19.76% | |
63 Neutral | $4.26B | 11.28 | 5.43% | 215.24% | 4.12% | -8.73% |
* Industrials Sector Average
Performance Comparison
SBGSY
Schneider Electric SE
48.45
3.60
8.03%
ETN
Eaton
287.02
-26.04
-8.32%
EMR
Emerson Electric Company
105.05
-2.60
-2.42%
ITW
Illinois Tool Works
242.07
-0.30
-0.12%
PH
Parker Hannifin
596.81
53.13
9.77%
ROK
Rockwell Automation
248.54
-23.32
-8.58%
Schneider Electric SE Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -6.00% | Next Earnings Date: Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance by Schneider Electric, with record revenues, significant growth in key segments like data centers, and continued recognition for sustainability efforts. However, challenges in discrete automation and the Chinese market, along with a notable fine from the French Competition Authority, presented some concerns. Despite these issues, the positive developments and financial performance strongly outweighed the negatives.Highlights
Record-Breaking Revenue and Growth
Schneider Electric reported record sales of over 38 billion Euros in 2024, with an 8.4 billion growth organically. This surpassed their guidance of 6% to 8% growth.
Strong Profitability and Dividend Increase
The company achieved a 14% increase in adjusted EBITDA, reaching 7 billion Euros. Additionally, the dividend increased by 11%, marking the 15th consecutive year of a progressive dividend.
Sustainability and Recognition
Schneider Electric was named the most sustainable company in the world for the second time in five years by Corporate Knights. They have generated close to 700 million tonnes of CO2 saved and avoided.
Data Center Segment Surge
Data centers represented 24% of end orders in 2024, driven by strong demand and growth in the segment. Schneider Electric has a unique positioning in this market.
Significant Backlog Increase
Schneider Electric reported a strong uptick in its backlog by 12% compared to 2023, reaching 21.4 billion Euros.
Lowlights
Weakness in Discrete Automation
Industrial Automation was impacted by weakness in discrete automation throughout the year, though a positive momentum was noted in the second half of 2024.
Challenges in China
Schneider Electric faced continued weakness in the Chinese construction markets and low-single-digit declines in certain segments.
Non-Cash Impairment Impact on Net Income
Net income was impacted by a non-cash impairment in the first half of 2024, although adjusted net income reflected strong operating results with a 15% increase.
French Competition Authority Fine
The company was negatively impacted by a provision of 104 million Euros tied to a fine from the French Competition Authority.
Company Guidance
In the recent call, Schneider Electric provided guidance for 2025, highlighting several key metrics. The company expects an organic growth rate of 7% to 10% for the year, driven by strong market demand across all sectors, notably in data centers, which now represent 24% of end orders. The adjusted EBITDA margin is expected to improve by 50 to 80 basis points, targeting a range of 19.2% to 19.5% by the end of 2025. This growth is supported by a robust backlog of 21.4 billion Euros, reflecting a 12% increase from the previous year. Schneider Electric also plans to continue investing in capacity, particularly in North America, India, and the Middle East, to support anticipated demand. Despite geopolitical uncertainties, the company is prepared to implement commercial actions to protect its profitability. Overall, Schneider Electric remains optimistic about its strategic positioning and the opportunities for growth in the coming year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.