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Schneider Electric SE
(OTC:SBGSY)
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Rating:70Outperform
Price Target:
$64.00
â–¼(-7.66% Downside)
Action:Reiterated
Date:07/31/26
The score is primarily supported by strong financial quality (improving margins and reliable free cash flow) and a notably positive earnings update with upgraded guidance and record H1 performance. These positives are tempered by weak technical positioning (below major moving averages) and a relatively expensive valuation (high P/E with only a modest dividend yield), with rising leverage and recent revenue softness as additional financial risk factors.
Positive Factors
Broad-based growth and upgraded guidance
Record H1 sales, strong growth across regions and both major businesses, and higher full-year targets indicate broad customer demand. This supports sustained revenue momentum across energy management, automation, infrastructure and data-center markets.
Negative Factors
Rising leverage reduces financial flexibility
Higher leverage leaves less balance-sheet flexibility if industrial demand weakens, integration costs rise or cash conversion deteriorates. Strong free cash flow mitigates the risk, but debt now requires more disciplined capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based growth and upgraded guidance
Record H1 sales, strong growth across regions and both major businesses, and higher full-year targets indicate broad customer demand. This supports sustained revenue momentum across energy management, automation, infrastructure and data-center markets.
Read all positive factors
Schneider Electric SE (SBGSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$188.32B
Dividend Yield1.44%
Average Volume (3M)41.90K
Price to Earnings (P/E)34.6
Beta (1Y)1.25
Revenue Growth14.71%
EPS Growth18.00%
CountryUS
Employees173,626
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.70
Shares Outstanding2,893,026,900
10 Day Avg. Volume48,320
30 Day Avg. Volume41,901
Financial Highlights & Ratios
PEG Ratio-12.63
Price to Book (P/B)5.44
Price to Sales (P/S)3.28
P/FCF Ratio27.07
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$217.34Price Target Upside213.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.34
Revenue Forecast (FY)$51.66B
Schneider Electric SE Business Overview & Revenue Model
Company Description
Schneider Electric S.E. delivers comprehensive digital solutions for energy management and industrial automation to a global client base. The company operates through two primary divisions: Energy Management and Industrial Automation. Its extensiv...
How the Company Makes Money
Schneider Electric makes money primarily by selling equipment, software, and services used to manage electricity and automate operations for commercial, industrial, and infrastructure customers.
Key revenue streams include:
- Product sales (hardw...
Schneider Electric SE Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance for H1 2026: record revenues and cash flow, meaningful margin expansion (+120 bps organic), accelerated pricing and productivity execution, an upgraded full‑year outlook, and strategic investments (Cognite, AiDASH). There are ongoing headwinds — notable FX translation losses (≈EUR 750m), raw material/tariff pressure partially offsetting gross margin gains, restructuring and impairment charges, regional geopolitical volatility (Middle East) and work to continue on Industrial Automation margin recovery — but management presented clear mitigation actions (pricing, productivity, capacity partnerships) and upgraded guidance, indicating confidence in sustaining momentum.Positive Updates
Record First-Half Revenues
H1 revenues reached EUR 21.2 billion (record for H1) with organic sales growth of +14% year-over-year and Q2 revenues up +16.5% organic to EUR 11.5 billion; broad-based contribution from all regions (North America, China/East Asia and India notably strong).
Negative Updates
FX and Translation Headwinds
Currency translation negatively impacted H1 revenues by close to EUR 750 million (mainly weaker USD and INR); management expects full‑year FX revenue headwind of about EUR ‑450m to ‑500m if rates persist.
Read all updates
Q2-2026 Updates
Positive
Negative
Record First-Half Revenues
H1 revenues reached EUR 21.2 billion (record for H1) with organic sales growth of +14% year-over-year and Q2 revenues up +16.5% organic to EUR 11.5 billion; broad-based contribution from all regions (North America, China/East Asia and India notably strong).
Read all positive updates
Company Guidance
Schneider upgraded its full‑year targets: organic revenue growth is now guided to 10–13% (vs. prior 7–10%), organic adjusted EBITA growth to roughly 14–19%, and adjusted EBITA margin expansion of 70–100 basis points by year‑end; FX is expected to be a €450–€500m revenue headwind for the year with negligible margin impact, cash conversion is forecast at ~100% for FY, restructuring charges are expected to peak at ~€450m in 2026, H1 share buybacks totaled €250m, and management noted strong H1 operational supports (€280m of product pricing realized, ~€535m of industrial productivity and €1.6bn free cash flow) that underpin the revised guidance.Schneider Electric SE Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.46B | 40.15B | 38.15B | 35.90B | 34.18B | 28.91B |
| Gross Profit | 17.51B | 16.89B | 16.27B | 14.62B | 13.40B | 11.35B |
| EBITDA | 8.80B | 8.37B | 7.39B | 7.19B | 6.36B | 5.34B |
| Net Income | 4.79B | 4.16B | 4.27B | 4.00B | 3.48B | 3.20B |
Balance Sheet | ||||||
| Total Assets | 65.24B | 62.48B | 65.94B | 58.90B | 58.37B | 54.55B |
| Cash, Cash Equivalents and Short-Term Investments | 4.52B | 4.63B | 6.89B | 4.70B | 3.99B | 2.63B |
| Total Debt | 19.19B | 17.74B | 16.31B | 13.93B | 11.73B | 10.84B |
| Total Liabilities | 40.51B | 38.03B | 34.66B | 31.73B | 32.27B | 26.44B |
| Stockholders Equity | 24.45B | 24.19B | 30.49B | 26.46B | 25.44B | 24.44B |
Cash Flow | ||||||
| Free Cash Flow | 6.23B | 4.86B | 4.63B | 4.54B | 3.26B | 2.74B |
| Operating Cash Flow | 7.32B | 5.89B | 5.58B | 5.91B | 4.35B | 3.62B |
| Investing Cash Flow | -7.17B | -7.93B | -1.99B | -1.05B | -1.41B | -5.17B |
| Financing Cash Flow | 279.26M | 293.92M | -1.62B | -3.82B | -1.45B | -3.09B |
Schneider Electric SE Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $82.76B | 33.15 | 12.69% | 1.46% | 4.82% | -1.66% | |
70 Outperform | $188.32B | 34.57 | 19.47% | 1.44% | 14.71% | 18.00% | |
70 Outperform | $246.07B | 27.16 | 83.40% | 0.18% | 12.85% | 738.05% | |
69 Neutral | $96.77B | 33.37 | 34.49% | 0.92% | 7.04% | 4.58% | |
68 Neutral | $46.79B | 40.07 | 33.32% | 1.29% | 11.27% | 25.32% | |
67 Neutral | $46.69B | 39.54 | 8.89% | 1.64% | -1.58% | -43.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
SBGSY
Schneider Electric SE
67.62
13.77
25.58%
EMR
Emerson Electric Company
152.19
19.18
14.42%
TT
Trane Technologies
442.52
45.48
11.46%
ROK
Rockwell Automation
428.39
88.01
25.86%
CARR
Carrier Global
57.46
-3.27
-5.39%
GEV
GE Vernova Inc.
957.27
333.14
53.38%
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.