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Schneider Electric SE (SBGSY)
OTHER OTC:SBGSY
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Schneider Electric SE
(OTC:SBGSY)
Rating:81Outperform
Price Target:
$64.00
â–²(15.86%Upside)
Schneider Electric SE (SBGSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$155.07B
Dividend Yield1.51%
Average Volume (3M)16.77K
Price to Earnings (P/E)33.5
Beta (1Y)1.11
Revenue Growth6.33%
EPS Growth6.55%
CountryUS
Employees155,822
SectorIndustrials
Sector Strength90
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.97
Shares Outstanding2,885,612,500
10 Day Avg. Volume0
30 Day Avg. Volume16,766
Financial Highlights & Ratios
PEG Ratio5.82
Price to Book (P/B)2.32
Price to Sales (P/S)0.00
P/FCF Ratio14.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$57.00Price Target Upside3.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Schneider Electric SE Business Overview & Revenue Model
Company DescriptionSchneider 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, contactors and protection relays, electrical protection and control products, energy management software solutions, transfer switches, surge protection and power conditioning products, power monitoring and control products, power quality and power factor correction products, pushbuttons, switches, pilot lights and joysticks, software products, and switchboards and enclosures. It also provides access control, building management, fire detection, sensors and room units, valve and valve actuator, and variable and frequency speed drive. In addition, the company offers feeder automation, grid automation and SCADA software products, medium voltage switchgears and transformers, outdoor equipment, substation automation products, and switchgear components. Further, it provides critical power and cooling services, data center software, IT power distribution products, prefabricated data center modules, racks and accessories, and security and environmental monitoring products; home automation and security, installation materials and systems, light switches and electrical sockets, and uninterruptible power supply products; and human machine interface, industrial automation software, industrial communication, measurement and instrumentation, motion control and robotics, signaling units, programmable logic and automation controllers, power supply and protection, process control and safety, RFID systems, signaling devices, and other industrial automation and control products, as well as solar and energy storage. The company was founded in 1836 and is headquartered in Rueil-Malmaison, France.
How the Company Makes MoneySchneider Electric generates revenue through the sale of products, solutions, and services related to energy management and automation. Key revenue streams include electrical distribution products, industrial automation systems, and software solutions designed to enhance energy efficiency and operational performance. The company also profits from providing digital solutions and services, such as cloud-based software and Internet of Things (IoT) applications, which help clients optimize their energy usage and reduce costs. Strategic partnerships and mergers and acquisitions further bolster its financial performance by expanding its technological capabilities and market reach.
Schneider Electric SE Earnings Call Summary
Earnings Call Date:Feb 20, 2025
(Q4-2024)
| % Change Since: 8.57%|
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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.Schneider Electric SE Financial Statement Overview
Summary
Schneider Electric SE exhibits strong financial health with consistent revenue growth and robust profitability metrics. The balance sheet is solid with moderate leverage, and cash flows are well-managed, 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 | 13.40B | 11.35B | 9.86B |
| EBITDA | 7.39B | 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 SE Technical Analysis
Positive
55.24
Price Trends
50.93
Positive
48.95
Positive
49.91
Positive
Market Momentum
0.91
Negative
64.56
Neutral
64.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBGSY, the sentiment is Positive. The current price of 55.24 is above the 20-day moving average (MA) of 52.28, above the 50-day MA of 50.93, and above the 200-day MA of 49.91, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 64.56 is Neutral, neither overbought nor oversold. The STOCH value of 64.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBGSY.
Schneider Electric SE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $155.07B | 33.54 | 15.19% | 1.51% | 6.33% | 6.55% | |
78 Outperform | $148.15B | 38.22 | 20.84% | 1.10% | 7.00% | 16.84% | |
77 Outperform | $92.33B | 27.81 | 27.16% | 1.00% | -0.23% | 22.41% | |
77 Outperform | $74.76B | 22.46 | 107.62% | 2.35% | -1.85% | 12.04% | |
76 Outperform | $81.13B | 34.42 | 9.82% | 1.46% | 6.49% | 24.14% | |
69 Neutral | $40.13B | 44.82 | 25.86% | 1.47% | -11.19% | -22.50% | |
58 Neutral | HK$14.28B | 4.63 | -3.01% | 6.75% | 3.67% | -54.16% |
* Industrials Sector Average
Performance Comparison
SBGSY
Schneider Electric SE
55.24
6.54
13.43%
ETN
Eaton
378.62
62.53
19.78%
EMR
Emerson Electric Company
144.23
28.47
24.59%
ITW
Illinois Tool Works
255.15
15.53
6.48%
PH
Parker Hannifin
722.58
176.12
32.23%
ROK
Rockwell Automation
356.00
85.23
31.48%
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.