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Intrinsic ValueSchneider Electric S.E. (SU.PA)

Previous Close242.30
Intrinsic Value
Upside potential
Previous Close
242.30

VALUATION INPUT DATA

This valuation is based on fiscal year data as of 2024 and quarterly data as of .

Data is not available at this time.

Stock Valuation Context

Business Model And Market Position

Schneider Electric S.E. is a global leader in energy management and industrial automation, operating through two core segments: Energy Management and Industrial Automation. The company provides a comprehensive portfolio of digital solutions, including electrical protection systems, energy management software, data center infrastructure, and industrial automation products. Its offerings cater to diverse sectors such as utilities, manufacturing, data centers, and residential markets, positioning Schneider Electric as a critical enabler of energy efficiency and digital transformation. Schneider Electric’s competitive edge lies in its integrated ecosystem of hardware, software, and services, which supports sustainability and operational resilience for clients worldwide. The company’s strong R&D focus and strategic acquisitions, such as AVEVA, reinforce its technological leadership in smart grids, IoT-enabled automation, and energy storage. With a legacy dating back to 1836, Schneider Electric has built a trusted brand reputation, underpinned by its commitment to innovation and sustainability. Its global footprint and diversified customer base mitigate regional risks while allowing it to capitalize on megatrends like electrification, decarbonization, and Industry 4.0.

Revenue Profitability And Efficiency

Schneider Electric reported revenue of €38.2 billion in FY 2024, reflecting steady demand for its energy and automation solutions. Net income stood at €4.3 billion, with diluted EPS of €7.53, demonstrating robust profitability. Operating cash flow of €5.6 billion highlights efficient working capital management, while capital expenditures of €950 million indicate disciplined reinvestment in innovation and infrastructure.

Earnings Power And Capital Efficiency

The company’s earnings power is supported by high-margin software and services, alongside recurring revenue streams from maintenance and digital solutions. Return on invested capital remains healthy, driven by operational leverage and scalable technologies. Schneider’s capital allocation prioritizes growth investments, dividends, and strategic M&A to sustain long-term competitiveness.

Balance Sheet And Financial Health

Schneider Electric maintains a solid balance sheet with €6.9 billion in cash and equivalents against €16.3 billion in total debt, reflecting prudent liquidity management. Its investment-grade credit rating and strong free cash flow generation provide flexibility to navigate macroeconomic uncertainties while funding growth initiatives.

Growth Trends And Dividend Policy

Revenue growth is underpinned by secular trends in electrification and digitalization, particularly in emerging markets. The company has a consistent dividend policy, with a payout of €7.4 per share in FY 2024, appealing to income-focused investors. Share buybacks and accretive acquisitions further enhance shareholder returns.

Valuation And Market Expectations

With a market cap of €121.8 billion and a beta of 0.96, Schneider Electric trades at a premium reflective of its industry leadership and growth prospects. Analysts anticipate mid-single-digit revenue growth and margin expansion, supported by its high-value software and sustainability-driven product mix.

Strategic Advantages And Outlook

Schneider Electric’s strategic advantages include its global scale, technological innovation, and sustainability-focused solutions. The outlook remains positive, with tailwinds from energy transition investments and industrial digitization. Risks include supply chain disruptions and competitive pressures, but the company’s diversified portfolio and strong execution mitigate these challenges.

Sources

Company filings, Bloomberg, investor presentations

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FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

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