SCHNEIDER ELECTRIC SE (SU.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:SU - FR0000121972 - Common Stock
235.35 EUR
+0.4 (+0.17%)
We assign a fundamental rating of 6 out of 10 to SU. SU was compared to 75 industry peers in the Electrical Equipment industry. While SU has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, SU is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- SU had positive earnings in the past year.
- In the past year SU had a positive cash flow from operations.
- 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
- With an excellent Return On Assets value of 6.94%, SU belongs to the best of the industry, outperforming 81.33% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 15.96%, SU is in the better half of the industry, outperforming 74.67% of the companies in the same industry.
- SU has a better Return On Invested Capital (11.32%) than 80.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SU is in line with the industry average of 9.57%.
- The 3 year average ROIC (10.64%) for SU is below the current ROIC(11.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 15.96% | ||
| ROIC | 11.32% |
ROA(3y)6.41%
ROA(5y)5.88%
ROE(3y)14.27%
ROE(5y)13.24%
ROIC(3y)10.64%
ROIC(5y)9.53%
1.3 Margins
- SU has a Profit Margin of 10.94%. This is amongst the best in the industry. SU outperforms 85.33% of its industry peers.
- In the last couple of years the Profit Margin of SU has grown nicely.
- SU has a better Operating Margin (17.21%) than 82.67% of its industry peers.
- SU's Operating Margin has improved in the last couple of years.
- SU has a better Gross Margin (42.17%) than 69.33% of its industry peers.
- In the last couple of years the Gross Margin of SU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.21% | ||
| PM (TTM) | 10.94% | ||
| GM | 42.17% |
OM growth 3Y2.82%
OM growth 5Y2.96%
PM growth 3Y0.31%
PM growth 5Y4.72%
GM growth 3Y1.34%
GM growth 5Y1.53%
2. Health
2.1 Basic Checks
- SU has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for SU has been increased compared to 1 year ago.
- The number of shares outstanding for SU has been increased compared to 5 years ago.
- SU has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.91 indicates that SU is not in any danger for bankruptcy at the moment.
- The Altman-Z score of SU (3.91) is better than 73.33% of its industry peers.
- SU has a debt to FCF ratio of 4.12. This is a neutral value as SU would need 4.12 years to pay back of all of its debts.
- The Debt to FCF ratio of SU (4.12) is better than 69.33% of its industry peers.
- A Debt/Equity ratio of 0.50 indicates that SU is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.50, SU perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.26
WACC8.99%
2.3 Liquidity
- SU has a Current Ratio of 1.14. This is a normal value and indicates that SU is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of SU (1.14) is worse than 73.33% of its industry peers.
- A Quick Ratio of 0.83 indicates that SU may have some problems paying its short term obligations.
- With a Quick ratio value of 0.83, SU perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- SU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.52%, which is quite good.
- The Earnings Per Share has been growing by 9.36% on average over the past years. This is quite good.
- Looking at the last year, SU shows a small growth in Revenue. The Revenue has grown by 7.89% in the last year.
- Measured over the past years, SU shows a small growth in Revenue. The Revenue has been growing by 7.04% on average per year.
EPS 1Y (TTM)8.52%
EPS 3Y10.72%
EPS 5Y9.36%
EPS Q2Q%-1%
Revenue 1Y (TTM)7.89%
Revenue growth 3Y9.69%
Revenue growth 5Y7.04%
Sales Q2Q%6.4%
3.2 Future
- SU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.82% yearly.
- SU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.85% yearly.
EPS Next Y5.13%
EPS Next 2Y10.21%
EPS Next 3Y11.67%
EPS Next 5Y12.82%
Revenue Next Year6.33%
Revenue Next 2Y6.5%
Revenue Next 3Y6.97%
Revenue Next 5Y7.85%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 28.42, which means the current valuation is very expensive for SU.
- Compared to the rest of the industry, the Price/Earnings ratio of SU indicates a somewhat cheap valuation: SU is cheaper than 70.67% of the companies listed in the same industry.
- SU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 23.29, the valuation of SU can be described as rather expensive.
- SU's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, SU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.42 | ||
| Fwd PE | 23.29 |
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 66.67% of the companies listed in the same industry.
- SU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.3 | ||
| EV/EBITDA | 17.29 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- SU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.54
PEG (5Y)3.04
EPS Next 2Y10.21%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
- SU has a Yearly Dividend Yield of 1.10%.
- SU's Dividend Yield is a higher than the industry average which is at 0.79.
- Compared to the average S&P500 Dividend Yield of 1.82, SU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
- On average, the dividend of SU grows each year by 8.29%, which is quite nice.
Dividend Growth(5Y)8.29%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- SU pays out 50.95% of its income as dividend. This is a bit on the high side, but may be sustainable.
- SU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.95%
EPS Next 2Y10.21%
EPS Next 3Y11.67%
SCHNEIDER ELECTRIC SE / SU.PA FAQ
What is the ChartMill fundamental rating of SCHNEIDER ELECTRIC SE (SU.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SU.PA.
Can you provide the valuation status for SCHNEIDER ELECTRIC SE?
ChartMill assigns a valuation rating of 3 / 10 to SCHNEIDER ELECTRIC SE (SU.PA). This can be considered as Overvalued.
How profitable is SCHNEIDER ELECTRIC SE (SU.PA) stock?
SCHNEIDER ELECTRIC SE (SU.PA) has a profitability rating of 8 / 10.
What is the financial health of SCHNEIDER ELECTRIC SE (SU.PA) stock?
The financial health rating of SCHNEIDER ELECTRIC SE (SU.PA) is 5 / 10.
Can you provide the expected EPS growth for SU stock?
The Earnings per Share (EPS) of SCHNEIDER ELECTRIC SE (SU.PA) is expected to grow by 5.13% in the next year.