Schneider Electric (SU) AI Stock Analysis

• Market Cap: €142.70B
• Dividend Yield: 1.51%
• Average Volume (3M): 914.69K
• Price to Earnings (P/E): 33.1
• Beta (1Y): 1.25
• 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: €262.52
• Price Target Upside: 1.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 75 Outperform
• Price Target: €277.00 ▲(7.05% Upside)

Schneider Electric's strong financial performance is the most significant factor, supported by consistent revenue and profit growth, efficient operations, and a stable financial position. Technical analysis indicates a positive trend, although valuation metrics suggest the stock is relatively expensive. The absence of earnings call data and corporate events does not impact the 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 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. The company maintains a healthy profitability margin and a manageable debt-to-equity ratio, indicating effective financial management.

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	6.31B	5.97B	4.18B
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: 258.75
• 50DMA: Positive
• 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 258.75 is above the 20-day moving average (MA) of 249.18, above the 50-day MA of 233.75, and above the 200-day MA of 226.06, indicating a bullish trend. The MACD of 5.34 indicates Negative momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 82.36 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
SU	―	€142.70B	33.10	15.76%	1.51%	7.89%	11.06%
ALPM	―	€161.65M	14.67	11.66%	1.84%	3.35%	242.49%
MTU	―	€672.77M	9.24	7.79%	7.18%	-12.27%	-55.24%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%