Schneider Electric SE (SBGSY)

Industrials · OTC ADR (Paris: SU / London: 0NWV) · Deep Dive Analysis — May 30, 2026
Smart Score 9 Pure-Play Electrification + AI Infrastructure All Recent Analyst Actions: Buy
$63.00
ADR Price (May 29)
$175B
Market Cap (USD)
+26.7%
1-Year Return
€40.2B
FY2025 Revenue
17.5%
FY2025 EBIT Margin
1.55%
Dividend Yield
36.5x
Trailing P/E
ℹ️ ADR Note: SBGSY is an OTC American Depositary Receipt (1 ADR = 1 ordinary share). The primary listing is on Euronext Paris (SU). Financials are reported in EUR. TipRanks analyst consensus data is tracked via the London-listed ticker (0NWV) rather than the ADR — analyst ratings shown below are sourced from recent news coverage. The hedge fund score (0.5) reflects the ADR float only; true institutional ownership is captured through European filings.
📈 Price Performance vs. Peers (12 Months)
12-Month Total Price Performance — SBGSY vs. Industrial Automation Peers
Ticker Company May 2025 May 2026 1Y Return 52W High 52W Low vs. High Market Cap Analyst Consensus P/E
SBGSY ★ Schneider Electric $49.74 $63.00 +26.7% $66.47 $49.03 -5.2% $175B Buy (consensus) 36.5x
ROK Rockwell Automation $311.15 $451.06 +45.0% $457.94 $311.15 -1.5% $51B Buy 46.5x
PH Parker Hannifin $658.97 $844.63 +28.2% $1,020.71 $646.59 -17.3% $108B Strong Buy 30.6x
AME Ametek $177.58 $225.85 +27.2% $241.38 $174.71 -6.4% $52B Strong Buy 33.8x
ETN Eaton Corporation $316.54 $400.60 +26.6% $431.82 $313.97 -7.2% $156B Strong Buy 39.0x
EMR Emerson Electric $117.47 $143.82 +22.4% $160.42 $116.96 -10.3% $79B Buy 33.0x
SBGSY (+26.7%) is in line with the peer median over the past year. It narrowly trails PH (+28%) and AME (+27%) but outperforms EMR (+22%). ROK is the standout (+45%). Notably, SBGSY is only ~5% below its 52-week high — a healthier setup than PH (-17%) or ETN (-7%) relative to theirs.
🏆 Analyst Consensus — Detailed
Analyst Rating Summary (via London 0NWV coverage)
TipRanks tracks analyst ratings for Schneider Electric via its primary European listings. The ADR (SBGSY) shares the same underlying company. All 6 major analyst actions from May 2026 are Buy ratings:
Analyst FirmRatingDate
J.P. MorganBuyMay 28, 2026
BarclaysBuyMay 20, 2026
DZ BANK AGBuyMay 15, 2026
Goldman SachsBuyMay 7, 2026
Kepler CapitalBuyMay 5, 2026
J.P. MorganBuyMay 5, 2026
BernsteinBuyMay 4, 2026
BarclaysBuyMay 4, 2026
✅ 100% Buy consensus from all recent analyst actions. The company is broadly owned and covered by all major European and US investment banks.
Key Stats & Next Earnings
Current Price (ADR)$63.00
52-Week High / Low$66.47 / $49.03
% from 52W High-5.2%
YTD Gain+14.2%
Smart Score9 / 10 ⭐
Hedge Fund Score (ADR)0.50 (Hold)
P/E (Trailing GAAP)36.5x
Dividend Yield1.55%
Next Earnings ReportJuly 30, 2026 (H1 FY26)
H1 FY26 EPS Estimate€1.056 (ADR adj.) vs €0.909 YoY (+16.2%)
Investor Sentiment Score0.79 / 1.0 (Strong)
Earnings History (Semi-Annual — Schneider Reports H1 + FY)
ℹ️ Schneider Electric reports financial results twice per year: H1 results (typically late July) and full-year results (typically mid-February). Average absolute stock price reaction at earnings: ±4.12%.
PeriodReport DateActual EPSEst. EPSSurpriseYoY EPS ChangeStock Reaction
H1 FY25Jul 31, 2025 €0.909€0.979 -7.2% MISS +4.7% -10.0% 🔴
FY25 (Full Year)Feb 26, 2026 €1.093€1.136 -3.8% MISS +12.6% +4.5% 🟢
H1 FY24Jul 31, 2024 €0.868€0.856 +1.4% BEAT +143.8% -1.2%
FY24 (Full Year)Feb 20, 2025 €0.971€0.921 +5.4% BEAT +13.8% +4.4% 🟢
H1 FY23Jul 27, 2023 €0.356€0.839 -57.6% MISS ⚠ -45.9% +0.9%
FY23 (Full Year)Feb 15, 2024 €0.853€0.346 +146.5% BEAT ⚠ +3.3% +3.8%
⚠ The large EPS deviations in FY23 are due to the consolidation of AVEVA (industrial software acquisition). The H1 FY23 "miss" and FY23 "beat" reflect timing and restructuring charges, not underlying operational weakness. The meaningful data point is that revenue and EBIT have grown consistently. H1 FY25's -10% stock reaction on a -7% EPS miss was the biggest recent headwind; full-year FY25 results recovered (+4.5%) as management reiterated guidance.
Next report: July 30, 2026 (H1 FY26) — Consensus EPS: €1.056 (+16.2% YoY vs €0.909). Given the H1 FY25 miss and the -10% stock reaction, this is a key risk/opportunity event. A beat would likely drive the stock back toward 52-week highs.
💰 Financials & Valuation
Income Statement — Annual Trend (EUR, GAAP)
MetricFY2021FY2022FY2023FY2024FY20255Y Trend
Revenue€28.9B€34.2B€35.9B€38.2B€40.2B↑ +39% total / ~8.5% CAGR
Gross Profit€11.3B€13.4B€14.6B€16.3B€16.5B↑ Expanding
Gross Margin39.3%39.2%40.7%42.6%41.1%↑ +180bps over 5 years
EBITDA€5.3B€6.4B€7.2B€7.4B€8.7B↑ +63% total
EBITDA Margin18.5%18.6%20.0%19.4%21.6%↑ Consistent expansion
Operating Income (EBIT)€4.6B€5.5B€5.9B€6.4B€7.0B↑ +54% total
EBIT Margin15.8%16.2%16.5%16.9%17.5%↑ Every year (target: 20%+ by 2027)
Net Income€3.2B€3.5B€4.0B€4.3B€4.2B↑ Strong
Net Margin11.1%10.2%11.2%11.2%10.4%→ Stable ~10-11%
EPS (Diluted, EUR)€1.13€1.23€1.41€1.52€1.47↑ Growing
R&D Expense€1.3B€1.5B€1.7B€2.2B€2.1B↑ Accelerating (5.2% of rev.)
Free Cash Flow€2.7B€3.3B€4.5B€4.6B€4.9B↑ +79% over 5 years — best-in-class
Net Debt€8.2B€7.7B€9.2B€9.4B€13.1B↑ Rising (AVEVA + M&A)
Debt/Equity0.44x0.46x0.53x0.54x0.73x↑ Increasing but manageable
✅ Revenue, EBIT, and FCF have all grown every year since 2021. EBIT margin has expanded 170bps to 17.5% — ahead of the midpoint of management's 17–17.5% FY2025 target. Management targets >20% EBIT margin by 2027 as AVEVA recurring software revenue scales and efficiency programs continue.
Valuation Metrics — SBGSY vs. Industrial Automation Peers
Metric SBGSY ★ ETN ROK AME PH EMR Notes
P/E (Trailing) 36.5x 39.0x 46.5x 33.8x 30.6x 33.0x SBGSY middle of pack
Market Cap $175B $156B $51B $52B $108B $79B
FY2025 Revenue €40.2B ($~44B) ~$26B ~$9B ~$7B ~$22B ~$17B Schneider is by far the largest
EBIT Margin (latest) 17.5% ~20% ~17% ~25% ~23% ~19% Expanding toward 20%+ target
FCF Margin ~12% ~11% ~12% ~20% ~15% ~14%
EV/EBITDA (est.) ~22x ~22x ~25x ~23x ~18x ~19x Broadly in line with peers
Net Debt €13.1B ~$8B ~$3B ~$4B ~$16B ~$5B Rising post-AVEVA acquisition
Debt / Equity 0.73x ~0.5x ~0.6x ~0.4x ~1.2x ~0.7x Manageable; FCF deleveraging
Dividend Yield 1.55% 1.07% 1.21% 0.56% 0.88% 1.52% SBGSY best yield in peer group
1Y Stock Return +26.7% +26.6% +45.0% +27.2% +28.2% +22.4%
Analyst Consensus Buy (all banks) Strong Buy Buy Strong Buy Strong Buy Buy
Smart Score 9 7 7 7 10 9
🏭 Business Model & Revenue Segments
Revenue by Division (FY2025, Estimated)
DivisionEst. Revenue% of TotalGrowthKey Brands/Products
Energy Management ~€28–29B ~70–72% +8–10% Electrical distribution, grids, data centers, buildings
Industrial Automation ~€11–12B ~28–30% ~flat AVEVA, Modicon PLCs, OT/IT convergence
Geographic Split (approx.):
• Americas: ~35% of revenue
• Europe: ~33%
• Asia-Pacific: ~27%
• Rest of World: ~5%

Revenue Type:
• Products: ~55%
• Systems: ~25%
• Services & Software (recurring): ~20% and growing
Key Strategic Themes & Growth Drivers
⚡ Electrification Megatrend: Electrical infrastructure buildout for EVs, grids, renewables, and industrial decarbonization is a multi-decade tailwind. Schneider is a direct beneficiary with switchgear, transformers, and energy management solutions.
🖥️ Data Center AI Infrastructure: Hyperscaler capex boom is directly driving demand for Schneider's power distribution, cooling, and critical power UPS systems. India data center business expected to outpace core growth. Orders record high.
☁️ AVEVA / Software Transition: Acquisition of AVEVA (2023) added industrial software and digital twin capabilities. Recurring revenue mix is growing — improving earnings quality and multiple over time.
🏢 Building Automation: Smart buildings, BMS, HVAC controls, and EV charging infrastructure — secular growth market with high recurring service revenue.
🎯 Margin Expansion Roadmap: Company targets EBIT margin of 20%+ by 2027 (from 17.5% in 2025). Software mix, operational efficiency, and pricing are key levers.
⚖️ Bulls vs. Bears
🐂 Bullish Case
Durable fundamentals: Revenue growing ~8-9% annually, EBIT margin at 17.5% and expanding, FCF conversion >100%. Record backlog provides multi-quarter revenue visibility.
AI / data center supercycle: Hyperscaler capex is accelerating globally — Schneider's power and cooling solutions are mission-critical components. India data center expansion is cited as expected to outpace group growth.
Electrification cycle: Grid modernization, renewable integration, and EV infrastructure are 10–20 year tailwinds. Schneider's Energy Management division is perfectly positioned.
Digital/recurring revenue growth: AVEVA software and services are growing faster than hardware, improving margin mix and revenue predictability. EcoStruxure IoT platform is gaining adoption.
Strong FCF of €4.9B (FY2025): >100% FCF conversion enables self-funding of growth investments while paying dividends and reducing debt. No equity dilution required.
Dividend growth: Consistent annual dividend increases for over a decade — payout growing from $0.41 (2015) to $0.98 (2026). Payout ratio of ~58% is sustainable.
🐻 Bearish Case
Rising leverage: Net debt has grown to €13.1B (D/E ~0.73x) following the AVEVA acquisition. While manageable, it constrains additional M&A and creates interest burden headwinds.
Gross margin pressure: Tariffs, raw material costs, and product mix (more services, lower gross margin than pure hardware) create near-term gross margin headwinds. FY2025 gross margin dipped to 41.1% from the 42.6% peak.
Industrial Automation drag: The Industrial Automation segment is growing slowly as customers pause on automation capex amid macro uncertainty. This offsets the strong Energy Management performance.
AVEVA integration / subscription transition: Converting AVEVA customers from perpetual to subscription licenses causes near-term revenue recognition challenges and margin noise.
Currency risk: As a EUR-reporting company, USD/EUR and EM currency moves impact USD ADR returns independently of underlying business performance.
H1 FY25 earnings miss: The -7.2% EPS miss in July 2025 (causing a -10% stock reaction) showed execution risk. The H1 FY26 report on July 30, 2026 is a near-term risk event.
💵 Dividend History
Annual Dividend History (USD, ADR Basis)
$0.983
2026 Annual Dividend (USD)
1.55%
Current Dividend Yield
Annual
Payment Frequency (once/year, May/June)
YearEx-DateAmount (USD)Yield at PaymentYoY Growth
2026May 12, 2026$0.9831.56%+18.9%
2025May 14, 2025$0.8271.69%+9.2%
2024May 29, 2024$0.7571.54%+8.7%
2023May 9, 2023$0.6962.05%+14.1%
2022May 17, 2022$0.6102.25%-0.2%
2021May 7, 2021$0.6111.90%+10.5%
2020May 6, 2020$0.5533.23%+4.5%
2019May 2, 2019$0.5293.22%-2.4%
ℹ️ USD dividend amounts fluctuate with EUR/USD exchange rates since dividends are declared in EUR. The underlying EUR dividend has grown consistently. FY2025 payout ratio: ~58% (sustainable; FCF of €4.9B covers the ~€2.1B dividend easily).
📉 Technical Analysis
Summary Signals (Daily) — Very Clean Setup
Strong Buy
Overall Signal
16 Buy · 5 Neutral · 1 Sell
Strong Buy
Moving Averages
12 Buy · 0 Neutral · 0 Sell
Buy
Oscillators
4 Buy · 5 Neutral · 1 Sell
RSI (14)53.7 — Healthy neutral (not overbought)
MACD (12,26,9)Buy signal (positive)
ADX (14)10.6 — Low; trend not strongly established yet
Williams %R (14)-31.7 — Buy (room to run)
CCI (20)19.0 — Neutral
ATR (14)1.09 (~1.7% daily range)
✅ Significantly cleaner technical setup than ABBV. RSI at 53.7 is well below overbought territory, oscillators are mostly neutral/buy (not sell), and all 12 moving averages are bullish. This suggests more room to run without a short-term pullback risk.
Moving Averages (All 12 Bullish ✅)
MASMA ValueEMA ValueSignal
5-day$62.75$62.55Buy
10-day$61.80$62.37Buy
20-day$62.50$62.24Buy
50-day$60.33$61.11Buy
100-day$59.08$59.42Buy
200-day$56.55$56.87Buy
Current Price vs. 200-day SMA+11.4% above (bullish)
Current Price vs. 52W High-5.2% (not extended)
Current Price vs. 52W Low+28.5%
✅ Unlike ABBV which is near its 52W high with overbought oscillators, SBGSY is ~5% off its highs with neutral RSI — a more constructive entry point from a technical standpoint.
📰 Recent News & Analyst Activity
Latest News (May 2026)
J.P. Morgan Sticks to Its Buy Rating for Schneider Electric
May 28, 2026 · TipRanks News · Positive
Schneider Expects India Data Center Business to Outpace Core Growth
May 25, 2026 · Reuters via TipRanks · Positive — Key AI/data center catalyst
Barclays Remains a Buy on Schneider Electric
May 20, 2026 · TipRanks News · Positive
Goldman Sachs Initiates/Reaffirms Buy on Schneider Electric
May 7, 2026 · TipRanks News · Positive
Kepler Capital Maintains Buy on Schneider Electric
May 5, 2026 · TipRanks News · Positive
Bernstein Reaffirms Buy Rating on Schneider Electric
May 4, 2026 · TipRanks News · Positive
Barclays Keeps Buy Rating on Schneider Electric
May 4, 2026 · TipRanks News · Positive
🎯 Investment Summary Scorecard
SBGSY — At a Glance
Analyst Signal
BUY
8 consecutive Buy reaffirmations in May '26
Technical Signal
STRONG BUY
12/12 MAs bullish; RSI 53 (not overbought)
Earnings Risk
WATCH
H1 FY26 report Jul 30 — key near-term event
Macro Theme
STRONG
Electrification + AI data centers = secular tailwinds
FactorSignalDetail
Revenue Growth✅ Strong8.5% CAGR 2021–2025; guided 7–10% for 2026
Margin Expansion✅ On TrackEBIT margin 15.8% → 17.5%; targeting 20%+ by 2027
Free Cash Flow✅ Best-in-class€4.9B in FY2025; >100% conversion; growing every year
AI / Data Center Exposure✅ DirectPower distribution, UPS, cooling for hyperscalers
Electrification Tailwind✅ 10–20 YearGrid modernization, EVs, renewables integration
Leverage⚠ Moderate RiskNet debt €13.1B (D/E 0.73x); rising post-AVEVA
Earnings Consistency⚠ Mixed2 of last 4 reports were misses (H1 FY25: -7.2%)
Dividend✅ Growing~9% DPS CAGR; 58% payout ratio; EUR-denominated
Valuation vs. Peers→ Fair36.5x P/E in line with electrification peer median
Currency Risk⚠ PresentEUR/USD moves directly affect USD ADR returns
Bottom Line: Schneider Electric is the world's leading pure-play on electrification and energy management, directly exposed to two of the most powerful secular growth themes of the decade — AI infrastructure buildout and global electrification. Revenue is growing ~8–9% annually, FCF is increasing every year, and EBIT margins are on a clear expansion path toward 20%+. The technical setup is cleaner than most peers (RSI neutral at 53, not overbought), and all 8 major analyst firms active in May 2026 are at Buy. The key risk is the July 30 H1 FY26 earnings report — the prior H1 miss caused a -10% reaction — making it a critical event to monitor. For investors with a 2–3 year horizon, SBGSY offers a compelling combination of growth, quality, and megatrend exposure at a reasonable valuation relative to US electrification peers like Eaton.
🔄 SBGSY vs. ABBV — Side-by-Side
Head-to-Head Comparison
FactorABBV (AbbVie)SBGSY (Schneider Electric)Edge
SectorHealthcare / PharmaIndustrials / ElectrificationDifferent
1Y Return+20.8%+26.7%SBGSY
Smart Score10 / 109 / 10ABBV
Hedge Fund Score1.00 (Perfect)0.50 (ADR float only)ABBV
Analyst ConsensusStrong Buy (16B/4H/0S)Buy (all majors, 100% Buy)Tied
Dividend Yield3.10%1.55%ABBV
Dividend Growth~5–6% annually~9–10% annually (EUR basis)SBGSY
Revenue Growth~8–9% (FY2025)~8–9% CAGRTied
Earnings Consistency8/8 beats2 misses in last 4 reportsABBV
FCF Generation$17.8B (pharma scale)€4.9B (growing strongly)Context-dependent
P/E (Trailing)106x GAAP / ~13–14x adj.36.5x GAAPSBGSY (cleaner metric)
Technical SetupOverbought oscillatorsRSI 53, room to runSBGSY
Near-Term Risk EventQ2 FY26 earnings Jul 24H1 FY26 earnings Jul 30 (prior miss: -10%)ABBV
Macro TailwindImmunology drugs (duopoly)Electrification + AI infra (megatrend)SBGSY
Debt Level$63.8B net debt€13.1B net debt (lower relative)SBGSY
Data sourced from TipRanks | Prices as of May 29, 2026 | Financials in EUR | For informational purposes only — not investment advice