Schneider Electric (SBGSY)
OTHER OTC:SBGSY
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Schneider Electric SE
(OTC:SBGSY)
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Rating:73Outperform
Price Target:
$61.00
â–²(5.43% Upside)
Action:UpgradedDate:03/01/26
The score is driven primarily by strong operating profitability and reliable free-cash-flow generation, reinforced by upbeat 2026 guidance and strong backlog-driven visibility. Offsetting factors are elevated valuation (high P/E with modest yield) and technically overextended momentum signals that raise near-term downside risk, alongside rising leverage and recent revenue softness.
Positive Factors
Improving Operating Profitability
Sustained margin expansion and improving EBITA reflect operational leverage and pricing power across Schneider’s businesses. Higher operating margins boost durable cash generation, provide buffer vs input cost shocks, and fund reinvestment in digital and services initiatives over the medium term.
Negative Factors
Rising Leverage
Higher debt-to-equity reduces financial flexibility if growth disappoints. With operating cash flow covering ~32% of total debt in 2025, elevated leverage increases refinancing and interest risk, constraining capital allocation choices and the pace of buybacks or M&A over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Operating Profitability
Sustained margin expansion and improving EBITA reflect operational leverage and pricing power across Schneider’s businesses. Higher operating margins boost durable cash generation, provide buffer vs input cost shocks, and fund reinvestment in digital and services initiatives over the medium term.
Read all positive factors
Schneider Electric SE (SBGSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$168.14B
Dividend Yield1.51%
Average Volume (3M)57.28K
Price to Earnings (P/E)31.6
Beta (1Y)1.20
Revenue Growth8.49%
EPS Growth11.63%
CountryUS
Employees155,822
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.09
Shares Outstanding2,885,612,500
10 Day Avg. Volume138,048
30 Day Avg. Volume57,283
Financial Highlights & Ratios
PEG Ratio-12.64
Price to Book (P/B)5.44
Price to Sales (P/S)3.28
P/FCF Ratio27.07
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue3.91
Enterprise Value/Gross Profit9.57
Enterprise Value/Ebitda19.65
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.26
Revenue Forecast (FY)$50.17B
Schneider Electric SE 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,...
How the Company Makes Money
Schneider Electric makes money primarily by selling a mix of hardware, software, and services used to manage electricity and automate operations.
1) Product (hardware) revenue: A significant portion of revenue comes from manufacturing and selling...
Schneider Electric SE Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
Overall the call was constructive and optimistic: Schneider reported record revenues (>EUR 40B), strong Q4 acceleration, robust free cash flow (EUR 4.6B) and a record backlog (>EUR 25B), alongside digital and sustainability progress. Management acknowledged material near-term headwinds — gross margin pressure from raw materials, tariffs and mix, FX translation impacts, restructuring and some impairments, and ongoing China deflation — but provided concrete 2026 targets (organic revenue 7–10%, adjusted EBITA growth 10–15%, margin expansion 50–80 bps) and action plans (pricing ramp, simplification, regionalization, gross‑margin initiatives) intended to address these issues. Given the magnitude and number of positive operating and financial achievements and the clear mitigation plans, the highlights outweigh the disclosed challenges.Positive Updates
Record Annual Revenue
Schneider Electric exceeded EUR 40 billion in full-year 2025 revenues (EUR 40.2B), up +9% organic year-over-year — the first time the company surpassed the EUR 40B milestone.
Negative Updates
Gross Margin Pressure
Group gross margin came in at 42.1%, down ~40 basis points organically versus prior year; management cited tariffs, raw material inflation (notably copper and silver), and negative mix (systems vs. products) as primary headwinds.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Revenue
Schneider Electric exceeded EUR 40 billion in full-year 2025 revenues (EUR 40.2B), up +9% organic year-over-year — the first time the company surpassed the EUR 40B milestone.
Read all positive updates
Company Guidance
Schneider guided 2026 to 7–10% organic revenue growth and 10–15% adjusted EBITA growth, targeting an organic adjusted EBITDA margin improvement of 50–80 basis points (implying a full‑year margin of roughly 19.1–19.4%); management expects gross margin to turn positive during 2026 as pricing is ramped (H1 may remain flat/negative due to tariff/RMI timing), will be supported by a record backlog >€25bn (up 18%) and strong data‑center visibility, and flags an FX headwind of ~€850–950m on revenues (≈‑10bps on adjusted EBITDA) — cash conversion is targeted around 100% (after €4.6bn FCF and ~106–111% conversion in 2025) while ongoing simplification (≈€300m restructuring in 2025) aims to deliver −1.5 to −2.0pp improvement in SFC‑to‑sales through 2030.Schneider Electric SE Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
81
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.15B | 38.15B | 35.90B | 34.18B | 28.91B |
| Gross Profit | 16.49B | 16.27B | 14.62B | 13.40B | 11.35B |
| EBITDA | 8.68B | 7.39B | 7.19B | 6.36B | 5.34B |
| Net Income | 4.16B | 4.27B | 4.00B | 3.48B | 3.20B |
Balance Sheet | |||||
| Total Assets | 62.48B | 65.94B | 58.90B | 58.37B | 54.55B |
| Cash, Cash Equivalents and Short-Term Investments | 4.63B | 6.89B | 4.70B | 3.99B | 2.63B |
| Total Debt | 17.74B | 16.31B | 13.93B | 11.73B | 10.84B |
| Total Liabilities | 38.03B | 34.66B | 31.73B | 32.27B | 26.44B |
| Stockholders Equity | 24.19B | 30.49B | 26.46B | 25.44B | 24.44B |
Cash Flow | |||||
| Free Cash Flow | 4.86B | 4.63B | 4.54B | 3.26B | 2.74B |
| Operating Cash Flow | 5.89B | 5.58B | 5.91B | 4.35B | 3.62B |
| Investing Cash Flow | -7.93B | -1.99B | -1.05B | -1.41B | -5.17B |
| Financing Cash Flow | 293.92M | -1.62B | -3.82B | -1.45B | -3.09B |
Schneider Electric SE Technical Analysis
Negative
57.86
Price Trends
58.44
Negative
56.50
Negative
55.19
Negative
Market Momentum
-1.34
Positive
42.48
Neutral
41.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBGSY, the sentiment is Negative. The current price of 57.86 is above the 20-day moving average (MA) of 55.98, below the 50-day MA of 58.44, and above the 200-day MA of 55.19, indicating a bearish trend. The MACD of -1.34 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 41.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBGSY.
Schneider Electric SE Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $121.93B | 32.82 | 25.65% | 0.79% | 0.22% | 26.66% | |
79 Outperform | $52.78B | 31.97 | 14.26% | 0.59% | 3.67% | 10.44% | |
76 Outperform | $149.60B | 30.24 | 21.67% | 1.29% | 8.24% | 6.21% | |
73 Outperform | $168.14B | 31.60 | 16.28% | 1.51% | 8.49% | 11.63% | |
69 Neutral | $80.22B | 30.81 | 11.60% | 1.58% | 2.97% | 18.14% | |
68 Neutral | $43.82B | 35.94 | 27.69% | 1.33% | 0.98% | -7.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
SBGSY
Schneider Electric SE
59.87
19.02
46.55%
AME
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230.49
70.53
44.10%
ETN
Eaton
385.58
105.43
37.63%
EMR
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142.66
39.94
38.88%
PH
Parker Hannifin
966.05
375.41
63.56%
ROK
Rockwell Automation
389.97
151.20
63.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.