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 discover information on the activity of this group, but also elements to elaborate an analysis of its share price before buying or selling.
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.
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.
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.
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.
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.
A good analysis of Schneider Electric's share price requires, above all, a good knowledge of this company, its sector of activity and its main sources of income. It is important to carry out a complete analysis before buying or selling Schneider Electric stock. Here is a detailed presentation of this French company and its main and secondary activities, which is listed on the Euronext Paris market and is one of the leading stocks on the European market in terms of market capitalisation.
Schneider Electric SE is a leading company in the Digital Transformation of Energy Management and Automation in various sectors such as residential, buildings, data centres, infrastructures and industries. Founded in 1836, the company operates in more than 115 countries and is the undisputed leader in electrical management - medium voltage, low voltage and secure energy, and automation systems.
Schneider Electric provides integrated efficiency solutions that combine energy management, automation, and software to help customers optimise energy consumption and improve operational efficiency. The company has built an ecosystem that allows it to collaborate with a large community of partners, integrators and developers on its open platform to provide its customers with real-time control and operational efficiency.
It is also interesting to know where Schneider Electric makes its profits. The geographical breakdown of Schneider Electric's revenue is as follows: 5.8% in France, 18.5% in Western Europe, 27.9% in the United States, 4.2% in North America, 15.1% in China, 15.2% in Asia-Pacific and 13.3% in other regions.
Schneider Electric is known for its sustainability innovations and is committed to helping its customers achieve their environmental goals by reducing energy consumption and carbon emissions. The company also strives to maintain high ethical and environmental standards in all its operations.
With a long history and global presence, Schneider Electric is a leader in energy management and automation. Through its commitment to innovation and sustainability, the company continues to play a key role in the digital transformation of various sectors.
Photo credits: ©llcv2/123RF.COM
While it is of course important to know the Schneider Electric Group's activities, it is also important to know its main competitors in the market. We will now present these competitors in more detail.
The first serious competitor of Schneider Electric is the Indian group Cyient which is a company specialised in electrical engineering and formerly known as Infotech Enterprises.
Another important competitor to Schneider Electric is the ABB Group for ASEA Brown Boveri which is based in Switzerland. It is one of the world's leading players in power and automation technology with a presence in over 100 countries and employs over 136,000 people. It is one of the largest engineering companies and conglomerates in the world. The group is listed on the Zurich and Stockholm stock exchanges and on the New York Stock Exchange.
Next is Orano, formerly Areva, which is a French multinational energy company that operates mainly in the nuclear sector. Its main activities concern nuclear energy but also more generally electrical engineering.
The Eaton Industries GmbH group, formerly known as Moeller GmbH, is also a serious competitor of Schneider Electric and specialises in the production of electrotechnical components for power distribution and automation. The group employs more than 8,700 people at some 15 production sites and has companies in more than 90 different countries.
Finally, the French industrial group Legrand is also one of Schneider Electric's main competitors. This company, based in Limoges, is one of the international leaders in the sector of systems for electrical installations and information networks. Thanks to an important acquisition strategy, the group has grown steadily over time to become one of the largest companies in this sector with more than 215,000 product references and production facilities in 90 countries. It markets its products on all five continents with more than 180 target countries. It is also the world leader in sockets and switches with more than 20% of the market and in cable management with 15% of the world market. It achieves most of its turnover internationally, with a large proportion in emerging markets.
Finally, here are some of the current strategic partnerships of the Schneider Electric Group.
The first partnership we're going to introduce you to is the one established in 2017 with Microsoft Group, the leader in productivity platforms and services. The two companies actually announced an extension of their current partnership and reaffirmed their mutual commitment to deploying disruptive technologies at an event held at the Microsoft Innovation Center. The two companies took the opportunity to jointly present their latest innovations and the main development areas of their technological alliance. Initially, the two groups want to optimise operations and transform products and services thanks to the Internet of Things. This includes the launch by Schneider Electric of EcoStruxure, a global IoT architecture adapted to all its markets, including building, infrastructure and industry. This architecture is also based on the Azure IoT platform in order to stimulate the development of new services.
Subsequently, in 2018, the Schneider Electric group also set up an interesting partnership with Zayo, an American hosting company that has become one of the main providers of bandwidth infrastructure services with secure hosting and cloud offerings. The two companies have signed an agreement for Schneider Electric to upgrade a data centre in Vélizy that was recently acquired by Zayo. Thanks to this partnership, Zayo has once again positioned itself as a key player in the market. It is important to remember that data centres are currently at the heart of the daily economic activities of our companies, with the world's population generating an average of 1,200 billion GB of data each year. However, the management of these infrastructures, which consume a lot of energy, requires both innovative and high-performance solutions in order to guarantee a certain efficiency. In order to adapt to new market trends, to develop data storage centres with ever-increasing capacities and to carry out its adaptation, Zayo has chosen the Schneider Electric group as its partner, with its expertise and innovative solutions.
Even more recently, in 2019, Schneider Electric Group also signed a partnership with the Carlyle Group to strengthen an existing alliance and jointly develop new innovative infrastructure projects. Specifically, this collaboration will provide new opportunities for investment and energy management as a service, and will apply Schneider Electric's expertise in advanced connectivity and real-time information management to Carlyle's upcoming infrastructure and microgrid investments. The Carlyle Group has announced several major infrastructure projects in the United States, including the renovation of Terminal 1 at New York's JFK airport and the Lone Star oil port terminal. These two major projects will benefit from the partnership with Schneider Electric and its range of products and services.
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.
As you can see, the disadvantages of the Schneider Group and its share on the stock market are few compared to its strengths. However, but before you buy or sell it, you should not neglect them, given the relatively strong weight they can have on traders' decision-making.
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.
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.
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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