Rankings Grid & electrical equipment Schneider Electric

Schneider Electric

Grid & electrical equipment · FranceRank 72 of 829Prices 2 Nov 2026Model 1.470+ zone

15070100

In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.

Biggest deductions

Multiples vs own history−9
Dependence on AI data centres−5
Weak segment (Industrial Automation)−3

Strengths

Raised guidance+2
Pricing power+1

How the score is built

From 100 to 85, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start

85Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price: 240.45 EUR
Median analyst target: 328.90 EUR
Upside to median: +36.8%
Analysts: 23
Target range: 249.95 – 370.00 EUR
52-week change: −2%
P/E (trailing): 28.9
Forward P/E: 20.0
PEG: 0.93

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 3 findings−7 of −30

Weak segment (Industrial Automation)
Industrial Automation (€7.2bn, 17% of revenue) has not grown since 2022 (€7.7bn); the margin rose only 50 bp in H1 despite +7.7% organic, and management says the turnaround to desired profitability may take up to two years.
gurufocus.com
−3
Capital allocation
A string of expensive acquisitions: Cognite for USD 3.1bn (about 18 times its revenue of USD 170m; Morningstar: 'the price looks high') and the India minority for €5.5bn (RBC: 'not a cheap transaction'), following the AVEVA buyout in 2023. Net debt has risen from €9.4bn (2024) to €15.4bn, and the share count has risen 0.6% despite buybacks.
morningstar.com
−3
Quality of growth
Growth is driven by lower-margin system sales (+28% in Q2) and price increases (about 4 percentage points of product growth); gross margin improved only 10 bp organically, and software/services grew just 6%.
gurufocus.com
−1

Price

Today's multiples against the company's own history and its peers. · 2 findings−12 of −35

Multiples vs own history
Forward P/E 25.9 (28 on 2026E EPS) vs 17.2–26.5 in 2021–25 (median 24.3); EV/EBITDA 20.2 – above the whole range of 13.4–20.1; P/B 6.6 vs 2.8–5.4. The stock is up 27% in a year and trades at or above the top of its history on all multiples except P/FCF (26.4 vs 19.9–31.1).
stockanalysis.com
−9
FCF yield
FCF yield 3.8% TTM and about 3.1% on analysts' 2026E FCF (€5.1bn) at a market cap of €163bn; EV is €180bn incl. debt.
stockanalysis.com
−3

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−9 of −35

Dependence on AI data centres
Data centres made up about 30% of revenue in 2025 and are the largest growth engine (triple-digit order growth in Q2); management itself cites waning enthusiasm for AI and doubts about return on investment as well as execution risk as AI projects become larger and more complex.
utilitydive.com
−5
Macro, tariffs and currency
Negative currency translation of about €750m in H1 (weak USD and INR), inflation in raw materials and tariffs squeeze the margin, and the Middle East is described as marked by 'significant uncertainty'.
gurufocus.com
−3
Recurring restructuring
Restructuring costs are expected to peak at about €450m in 2026 – they are stripped out of adjusted EBITA, but are a recurring expense.
gurufocus.com
−1

Plus

Only documented strengths. · 2 findings+3 of +15

Raised guidance
2026 guidance raised after H1 (14% organic growth, adjusted EBITA margin 19.3%): organic revenue growth 10–13% and adjusted EBITA growth 14–19% organic, margin 19.4–19.7%.
investing.com
+2
Pricing power
Price realisation of 280 m € on products in H1 2026, equal to about 4 percentage points of product growth, with no loss of volume; all end markets grew.
gurufocus.com
+1

Caveats

What the score does not capture, or where the data is weak.

Schneider steers by adjusted EBITA and adjusted EPS (2025: 8.59 € vs reported 7.33 €); adjusted and reported figures are not the same. The company's net debt was 15.4 bn € at 30/6-2026 (stockanalysis: 16.3 bn € incl. leases). The purchase of Temasek's 35% of Schneider Electric India (5.5 bn €) and Cognite (3.1 bn USD) was not completed at the latest reporting and will raise debt further. Q3 revenue comes on 28/10. Insider trading and customer concentration among hyperscalers have not been investigated.