One-glance verdict
Within fair range
$45.08 our estimate vs market $55.91
Wall Street consensus: $79.80 (77.0% higher than our fair-value estimate)
24% above our estimate
Fundamentals snapshot
Schneider Electric S.E.
SBGSY · PNK · Industrials · Specialty Industrial Machinery
Current price
$55.91
52-week range
$50.61 - $71.98
Market cap
$157.47B
Balance sheet
Watch
12.98x Strong cushion
Net debt $18.31B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 5.2% last year.
- Reward Returns 18.6% on equity, ahead of 25% of its peers.
- Risk Net debt grew 104.5% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
Schneider Electric S.E.
Schneider Electric provides the essential electrical equipment and software that power everything from office buildings to large factories and data centers. The company makes money selling a huge range of products, from light switches to complex industrial control systems, and increasingly offers software to help customers make their energy use more efficient. This matters because their technology is fundamental to major global trends like making buildings smarter and transitioning to cleaner energy.
How the company got here
Schneider Electric started in 1836 in France, not in electricity, but in the iron and steel industry. For over a century, it was involved in heavy machinery and even shipbuilding. In the late 20th century, the company made a major shift, selling off its old industrial businesses to focus on the growing field of electricity. Through key acquisitions (buying other companies) like Square D in the U.S., Merlin Gerin in Europe, and American Power Conversion (APC), it built its expertise in electrical equipment and automation.
What it actually does
Think of Schneider Electric as a company that helps you use electricity safely and efficiently, both at home and in large buildings and factories. You might have their products in your house without knowing it, like circuit breakers in your electrical panel or light switches on the wall. They also make complex systems that manage power for huge data centers, automate factory production lines, and make buildings smarter to reduce energy waste. Their goal is to provide the hardware and software to control and manage electricity wherever it's used.
Energy Management
This is Schneider's largest business area, making up the majority of its sales. It includes all the essential equipment that distributes and protects electricity in buildings, from homes to giant data centers. This segment sells products like circuit breakers, switchboards, and uninterruptible power supplies (UPS) (which are like backup batteries for critical equipment). The customers are homeowners, businesses, and operators of large infrastructure who pay for the physical products and software that help them manage power safely and efficiently.
Industrial Automation
This part of the business helps factories and industrial sites run their machinery more efficiently and automatically. They provide the 'brains' and the 'muscles' for machines, such as programmable controllers, sensors, and software that manage robotic arms on an assembly line. The goal is to help manufacturers produce goods more effectively, use less energy, and reduce the need for manual work. Customers are manufacturing companies of all sizes who pay for these systems to improve their production processes.
What management is betting on now
The company is heavily focused on two major trends: sustainability and digitization (using digital technology to improve processes). They are betting that as the world moves towards being more electric and connected, customers will need smarter tools to manage their energy use and reduce their carbon footprint. A major priority is expanding their software and services, especially for data centers, which are becoming a huge consumer of energy with the rise of AI (Artificial Intelligence). They are also investing in making their supply chain (the network for creating and delivering products) more resilient and spread out across different regions.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $45.08 vs current price $55.91
Wall Street consensus is the average analyst price target: $79.80 (77.0% higher than our fair-value estimate).
Our most-likely fair value is $45.08 a share — about 19.4% away from today's price of $55.91, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $18.3B. Interest coverage 13.0x.
Net debt
$18.31B
Interest coverage
12.98x
Schneider Electric S.E.'s profit covers its interest bill about 13.0 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
SBGSY
BASELINE
Schneider Electric S.E.
Total debt $23.39B Interest coverage 12.98x This is the baseline the peer rows are being compared against.
Total debt $34.96B Interest coverage 4.89x -62% vs SBGSY Carries about 2.7x less debt cushion than SBGSY.
Total debt — Interest coverage -375.67x -100% vs SBGSY This peer has almost no interest-payment cushion compared with SBGSY.
Total debt $21.33B Interest coverage 21.61x +66% vs SBGSY Carries about 1.7x more debt cushion than SBGSY.
Total debt $13.80B Interest coverage 9.13x -30% vs SBGSY Carries about 1.4x less debt cushion than SBGSY.
What you should know
The case for and against SBGSY
3 Rewards
2 Risks
Rewards
-
Revenue grew 5.2% last year.
-
Returns 18.6% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 104.5% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
28.82x
Forward P/E
19.94x
P/B
5.72x
P/S
3.75x
EV/EBITDA
20.39x
PEG ratio
1.32x
Profitability
How much profit each dollar creates
Gross margin
42.1%
Operating margin
18.2%
Net margin
11.3%
ROE
18.6%
ROA
7.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.84x
Current ratio
1.09x
Quick ratio
0.81x
Total debt
$23.39B
Total cash
$5.08B
Growth
How the business has been compounding
Revenue TTM
$47.26B
Revenue 5Y CAGR
5.5%
EPS TTM
1.94
EPS 5Y CAGR
6.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$6.89B
Free CF TTM
$5.16B
FCF margin
10.9%
Dividend
Shareholder payout
Yield
1.8%
Payout ratio
50.6%
Last ex-div date
2026-05-12