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Schneider Electric SE SU Stock Quote

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Morningstar‘s Stock Analysis SU

Valuation
Currency in EUR
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Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

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Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Solid Q2 From Schneider Electric Despite Temporary Supply Chain Headwinds; Shares Attractive

Analyst Note

| Denise Molina, CFA |

Strong product category demand and good execution lead to another strong quarter for Schneider Electric as well as an increase in management guidance for the year.  Divisionally, the energy management division continues to be the stronger performer on growth and profitability. Group revenue grew by 10% organically with pricing as a stronger contributor than volume. Energy management grew by nearly 11% organically in the first half while the smaller industrial automation division grew by nearly 8%.  We believe the above cycle growth rates are driven by a mix of temporary catch-up demand but also long-term structural drivers, these include lower energy consumption and higher automation adoption across sectors, and we reflect these tailwinds in our 5% medium-term revenue forecast growth rate. Management moderately raised its full-year forecasts. We expect to make modest changes to our near-term forecasts but do not expect them to materially impact our EUR 150 fair value estimate. We maintain our narrow moat rating.

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Key Statistics SU

Company Profile SU

Business Description

France-based Schneider Electric is a leading global supplier to industrial, utility, data center, and energy customers. The company's products span from ground-level equipment to top-level analytics and execution software. Roughly 75% of its revenue comes from its low- and medium-voltage, while revenue from its automation division drives the remaining 25%. The company is the number-two and number-four supplier, respectively, in discrete (for example, manufacturing) and process (for example, fluid processing) automation. However, it holds the leading position in process safety systems.At the group level, software and services contribute about 18% of sales, integrated systems another 23%, and individual products (components and equipment) the final 59%.

Contact
35, rue Joseph Monier - CS 30323
Rueil Malmaison, F-92506, France
T +33 141297000
Industry Specialty Industrial Machinery
Most Recent Earnings
Fiscal Year End Dec 31, 2022
Stock Type
Employees 166,025