SCHNEIDER ELECTRIC

Analysis of Schneider Electric share price

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The energy market is not really experiencing the crisis, and many of the stocks that can be traded online are from this sector. This is the case of Schneider Electric, which we will present here in detail. You will therefore discover information on the activity of this group, but also a technical historical analysis of its share price.

Elements that can influence the price of this asset:

Analysis N°1

Priority will be given to monitoring Schneider's strategy of diversifying its activities, which can boost its share price by enabling it to expand its market. Any innovation or new subsidiary can therefore enable Schneider to boost its sales and profitability over the long term.

Analysis N°2

Regulatory developments in the various countries in which the Group operates will also be monitored, as a relaxation of certain rules could be beneficial to its operations and sales. Similarly, a tightening of these regulations will of course have the opposite effect.

Analysis N°3

Generally speaking, the global economic health and the level of growth in Schneider's target countries will be indicators of choice as they will determine the strength of demand.

Analysis N°4

The very strong competition in this sector of activity is of course also to be monitored by following all the publications from the other players mentioned above.

Analysis N°5

Finally, trade rules set by governments are also important when analysing Schneider's share price, as the company exports a large proportion of its products and services to many countries.

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General presentation of Schneider Electric

The Schneider Electric group is currently one of the world's leading manufacturers of electrical distribution equipment. However, its activity does not only involve electrical distribution equipment, but also industrial automation and control systems, electrical protection equipment and building automation.

Schneider Electric has more than 250 production sites around the world and works mainly with France, but also in Europe, China, Asia-Pacific, the United States and North America.

Analysis of Schneider Electric share price
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The major competitors of Schneider Electric

Schneider Electric is the world leader in electrical distribution across its entire range of products and services. A leader in energy management, building distribution, energy optimisation and electrical safety. But it remains in competition with many other companies in this field. It is therefore a good idea to find out about the prospects and results of these competing companies before you start trading Schneider Electric shares. To help you do this, here is a list of companies that represent a potential threat to the group.

Cyient

ABB Group

Areva

Moeller

Legrand

Hager

Hubbell

Hitachi

Toshiba

Eaton

Delixi

Chint

Fuji Electric

Danaher

Mitsubishi


The major partners of Schneider Electric

Finally, here are some of the current strategic partnerships of the Schneider Electric Group.

AREVA

In 2014, AREVA and Schneider Electric signed a strategic partnership agreement to develop energy storage and management solutions based on hydrogen production and fuel cells.

Alstom

In 2016, Alstom took advantage of the Innotrans show to welcome 10 new members, including Schneider Electric, Nexans, Soreel, Sanmina, Knorr Bremse, Faiveley and Midas, bringing the number to 34. The programme, based on three pillars of business development, industrial excellence and product and innovation, supports Alstom's strategy.

Microsoft

In 2017, Microsoft and Schneider have joined forces around the various

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The factors in favour of a rise in the Schneider Electric share price:

One of the main advantages of the Schneider Group is the success of the international expansion strategy it has been pursuing for many years. Thanks to this strategy, the company has succeeded in establishing a worldwide presence.

Another undeniable asset of the Schneider group this time is its choice positioning in the green energy segment. Indeed, the company has successfully diversified into this sector by anticipating the possible growth of this type of activity and is now reaping the benefits, having been one of the pioneers in this field.

The sheer size of the Schneider company, which is, it should be remembered, very large, is also one of its main assets in terms of growth potential. Indeed, this large size provides the company with greater resources than most of its competitors, enabling it to explore new markets through acquisitions and other such operations.

Still on the subject of the advantages of the Schneider Group, we can also talk here about the brand image and the very strong brand awareness it enjoys. After all, the Schneider brand is known throughout the world and is often synonymous with quality. This strong brand awareness and very positive image enables the company to charge higher prices than some of its competitors and therefore to benefit from higher margins.

Finally, the last advantage that can be mentioned here about Schneider concerns its strong innovative capacities. Indeed, every year Schneider makes significant investments in research and development. In addition, it already benefits from high-quality technology for its production and developments, enabling it to meet its customers' needs efficiently and always stay one step ahead of its main competitors.

The factors in favour of a drop in the Schneider Electric share price:
  • The first disadvantage that can be highlighted with regard to the Schneider group concerns its past and more specifically the strategic errors it may have made on certain operations. This was particularly the case with bad acquisitions that have largely weighed on its profitability and on the confidence of shareholders and investors on the stock market. These ill-advised acquisitions had the effect of significantly increasing the company's costs and reducing the value of the combined business. However, some of these acquisitions also suffered from a form of cultural incompatibility with the company's culture, which led to a significant drop in productivity and affected the group's core business.
  • The Schneider group's financial results are not very favourable either, particularly with regard to the rather disappointing margins, which are struggling to improve over time despite numerous efforts and the implementation of strategic plans by the group. These low margins are the result of several important factors such as the company's lack of liquidity.
  • Finally, the last disadvantage that can be mentioned here with regard to the Schneider group concerns another major financial aspect. This is, of course, the company's debt, which still weighs heavily on the level of investor confidence. Indeed, Schneider encounters certain financial difficulties with its clients, which has the effect of significantly increasing the debtor's provisions and affecting the group's profit. These bad debts are therefore a real problem for the company as they severely limit the group's profitability.

As you can see, the disadvantages of the Schneider Group and its share on the stock market are few compared to its strengths. However, you should not neglect them, given the relatively strong weight they can have on traders' decision-making.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are the segments in which Schneider Electric operates?

Schneider Electric has various activities, the main ones being electrical distribution, industrial automation and controls, secure energy and building automation. As a result of this diversity, it offers its products and services to different business sectors including the energy and infrastructure markets, the building market, the residential market, the industrial market and data centres and networks.

Is it possible to trade Schneider Electric shares with CFDs?

As the Schneider Electric group is listed on the Euronext Paris market and is also part of the composition of the CAC 40 French stock market index, numerous online trading platforms offering trading by CFD contracts provide access to this stock. You can therefore use these contracts on the difference to take up bullish or bearish positions on this stock by registering with one of these online brokers.

How to carry out the technical analysis of the Schneider Electric share?

Due to its high liquidity, Schneider Electric shares enable short-term trading strategies through technical analysis. Here, care should be taken to choose the period over which to carry out this analysis according to the strategy adopted and preferably follow several indicators simultaneously. In particular, we recommend the main volatility and trend indicators. However, we will not forget to check the group's timeliness to ensure that the signals thus obtained are up to date.

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