Schneider Electric S.E.
🇫🇷 SU.PA · Paris · FR0000121972
Industrials
EUR 236.15 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
32.4
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 236.15 ÷ 7.30 = 32.4
TTM period through: 2025-12-31
Forward P/E (estimated): 24.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 29.6
Yield (Fwd)
1.78%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 1.75%
Net Debt/EBITDA (TTM)
1.5x
Latest quarter: 3.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 3.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
57.5%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 52.6%
Cash Flow Payout (TTM): 35.7%
FCF Coverage (TTM): 2.31x
ROE
15.6%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
17.7x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Schneider Electric is a high-quality global leader in energy management and industrial automation, benefiting from structural tailwinds in electrification and AI data center expansion. While the company boasts exceptional fundamentals, strong free cash flow, and a flawless 10-year dividend track record, current valuation around €236 (P/E 32.4) offers limited upside. Existing shareholders should maintain positions given the outstanding business quality, but new investors should wait for a better entry point that provides a higher yield and margin of safety.
Sector Context
Schneider Electric operates in the industrials sector, specifically providing critical electrical infrastructure, building management systems, and industrial automation software globally. While traditional industrials can be cyclical, Schneider's deep integration into essential infrastructure, grid modernization, and high-growth areas like AI data centers provides defensive characteristics and stable, recurring cash flows highly suitable for long-term dividend growth.
📊 Strategy Analysis
- • Undisputed market leader in energy management and automation, benefiting from massive secular tailwinds in electrification and AI data center infrastructure.
- • Exceptional financial stability highlighted by a Net Debt/EBITDA ratio of 1.51x and a flawless 10-year dividend growth history.
- • Highly sustainable dividend payout backed by strong free cash flow generation, covering the dividend 2.31 times over (cash flow payout ratio of 35.7%).
- • Consistently high profitability with an impressive ROE of 15.6% and EBITDA margins exceeding 21%.
⚠ What to Watch
- • Current valuation is highly stretched with a TTM P/E of 32.36x, significantly exceeding the strategy's 8-15x target range and pricing in near-perfection.
- • Dividend yield of 1.75% falls well short of the 3% minimum requirement for optimal income generation.
- • Trading at a massive premium to its calculated monopoly fair value bound of €131.34, leaving virtually no margin of safety against macroeconomic volatility.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.