SCHNEIDER ELECTRIC SE (SU.PA)

FR0000121972 - Common Stock

209.65  +0.35 (+0.17%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to SU. SU was compared to 53 industry peers in the Electrical Equipment industry. While SU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SU has a correct valuation and a medium growth rate.



8

1. Profitability

1.1 Basic Checks

SU had positive earnings in the past year.
SU had a positive operating cash flow in the past year.
SU had positive earnings in each of the past 5 years.
Each year in the past 5 years SU had a positive operating cash flow.

1.2 Ratios

SU's Return On Assets of 6.80% is amongst the best of the industry. SU outperforms 82.35% of its industry peers.
Looking at the Return On Equity, with a value of 15.13%, SU is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
SU has a Return On Invested Capital of 10.35%. This is in the better half of the industry: SU outperforms 78.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SU is in line with the industry average of 10.35%.
The last Return On Invested Capital (10.35%) for SU is above the 3 year average (9.74%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.8%
ROE 15.13%
ROIC 10.35%
ROA(3y)6.21%
ROA(5y)5.66%
ROE(3y)13.97%
ROE(5y)12.68%
ROIC(3y)9.74%
ROIC(5y)9.04%

1.3 Margins

Looking at the Profit Margin, with a value of 11.15%, SU belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
SU's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 16.71%, SU belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
SU's Operating Margin has improved in the last couple of years.
SU has a Gross Margin of 41.81%. This is in the better half of the industry: SU outperforms 64.71% of its industry peers.
In the last couple of years the Gross Margin of SU has remained more or less at the same level.
Industry RankSector Rank
OM 16.71%
PM (TTM) 11.15%
GM 41.81%
OM growth 3Y4.39%
OM growth 5Y3.14%
PM growth 3Y9.68%
PM growth 5Y4.2%
GM growth 3Y1.18%
GM growth 5Y1.38%

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SU is creating some value.
Compared to 1 year ago, SU has about the same amount of shares outstanding.
Compared to 5 years ago, SU has more shares outstanding
Compared to 1 year ago, SU has a worse debt to assets ratio.

2.2 Solvency

SU has an Altman-Z score of 3.69. This indicates that SU is financially healthy and has little risk of bankruptcy at the moment.
SU has a Altman-Z score of 3.69. This is in the better half of the industry: SU outperforms 76.47% of its industry peers.
The Debt to FCF ratio of SU is 3.05, which is a good value as it means it would take SU, 3.05 years of fcf income to pay off all of its debts.
SU's Debt to FCF ratio of 3.05 is amongst the best of the industry. SU outperforms 94.12% of its industry peers.
SU has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
SU's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. SU outperforms 45.10% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 3.05
Altman-Z 3.69
ROIC/WACC1.38
WACC7.49%

2.3 Liquidity

SU has a Current Ratio of 1.21. This is a normal value and indicates that SU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.21, SU is in line with its industry, outperforming 43.14% of the companies in the same industry.
SU has a Quick Ratio of 1.21. This is a bad value and indicates that SU is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.93, SU perfoms like the industry average, outperforming 50.98% of the companies in the same industry.
The current and quick ratio evaluation for SU is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.21
Quick Ratio 0.93

5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.11% over the past year.
SU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.51% yearly.
Looking at the last year, SU shows a small growth in Revenue. The Revenue has grown by 5.05% in the last year.
Measured over the past years, SU shows a small growth in Revenue. The Revenue has been growing by 6.90% on average per year.
EPS 1Y (TTM)2.11%
EPS 3Y15.43%
EPS 5Y9.51%
EPS growth Q2Q-6.46%
Revenue 1Y (TTM)5.05%
Revenue growth 3Y12.58%
Revenue growth 5Y6.9%
Revenue growth Q2Q0.94%

3.2 Future

The Earnings Per Share is expected to grow by 12.71% on average over the next years. This is quite good.
Based on estimates for the next years, SU will show a small growth in Revenue. The Revenue will grow by 6.41% on average per year.
EPS Next Y18.55%
EPS Next 2Y14.89%
EPS Next 3Y14.3%
EPS Next 5Y12.71%
Revenue Next Year4.74%
Revenue Next 2Y5.92%
Revenue Next 3Y6.22%
Revenue Next 5Y6.41%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 28.88, which means the current valuation is very expensive for SU.
SU's Price/Earnings ratio is a bit cheaper when compared to the industry. SU is cheaper than 62.75% of the companies in the same industry.
When comparing the Price/Earnings ratio of SU to the average of the S&P500 Index (26.48), we can say SU is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.36, SU is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SU is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.79. SU is around the same levels.
Industry RankSector Rank
PE 28.88
Fwd PE 24.36

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SU indicates a somewhat cheap valuation: SU is cheaper than 60.78% of the companies listed in the same industry.
SU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SU is cheaper than 82.35% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.79
EV/EBITDA 16.76

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SU has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SU's earnings are expected to grow with 14.30% in the coming years.
PEG (NY)1.56
PEG (5Y)3.04
EPS Next 2Y14.89%
EPS Next 3Y14.3%

5

5. Dividend

5.1 Amount

SU has a Yearly Dividend Yield of 1.61%.
Compared to an average industry Dividend Yield of 2.55, SU pays a bit more dividend than its industry peers.
SU's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 1.61%

5.2 History

On average, the dividend of SU grows each year by 7.44%, which is quite nice.
Dividend Growth(5Y)7.44%
Div Incr Years4
Div Non Decr Years4

5.3 Sustainability

SU pays out 44.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.14%
EPS Next 2Y14.89%
EPS Next 3Y14.3%

SCHNEIDER ELECTRIC SE

EPA:SU (3/28/2024, 7:00:00 PM)

209.65

+0.35 (+0.17%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap117.05B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.61%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 28.88
Fwd PE 24.36
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.56
PEG (5Y)3.04
Profitability
Industry RankSector Rank
ROA 6.8%
ROE 15.13%
ROCE
ROIC
ROICexc
ROICexgc
OM 16.71%
PM (TTM) 11.15%
GM 41.81%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.21
Quick Ratio 0.93
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.11%
EPS 3Y15.43%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.05%
Revenue growth 3Y12.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y