Schneider Electric S.E.
Schneider Electric S.E. Fundamental Analysis
Schneider Electric S.E. (SBGSY) shows moderate financial fundamentals with a PE ratio of 34.04, profit margin of 10.94%, and ROE of 14.97%. The company generates $39.1B in annual revenue with moderate year-over-year growth of 6.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SBGSY's fundamental strength across five key dimensions:
Efficiency Score
WeakSBGSY struggles to generate sufficient returns from assets.
Valuation Score
WeakSBGSY trades at a premium to fair value.
Growth Score
ModerateSBGSY shows steady but slowing expansion.
Financial Health Score
ExcellentSBGSY maintains a strong and stable balance sheet.
Profitability Score
WeakSBGSY struggles to sustain strong margins.
Key Financial Metrics
Is SBGSY Expensive or Cheap?
P/E Ratio
SBGSY trades at 34.04 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SBGSY's PEG of 60.78 indicates potential overvaluation.
Price to Book
The market values Schneider Electric S.E. at 5.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.52 times EBITDA. This signals the market has high growth expectations.
How Well Does SBGSY Make Money?
Net Profit Margin
For every $100 in sales, Schneider Electric S.E. keeps $10.94 as profit after all expenses.
Operating Margin
Core operations generate 16.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.97 in profit for every $100 of shareholder equity.
ROA
Schneider Electric S.E. generates $6.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Schneider Electric S.E. produces operating cash flow of $5.22B, showing steady but balanced cash generation.
Free Cash Flow
Schneider Electric S.E. generates strong free cash flow of $4.18B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.48 in free cash annually.
FCF Yield
SBGSY converts 2.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
60.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How SBGSY Stacks Against Its Sector Peers
| Metric | SBGSY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.04 | 26.49 | Worse (Expensive) |
| ROE | 14.97% | 1307.00% | Weak |
| Net Margin | 10.94% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.58 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.14 | 10.48 | Neutral |
| ROA | 6.94% | -1549793.00% (disorted) | Weak |
SBGSY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Schneider Electric S.E.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.07%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
73.87%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
28.07%
Industry Style: Cyclical, Value, Infrastructure
High Growth