Schneider Electric SE : Volatility should make a big comeback
Entry price | Target | Stop-loss | Potential |
---|
€246.25 |
€265 |
€233 |
+7.61% |
---|
From a horizontal accumulation phase, the timing seems good to buy shares in Schneider Electric SE and to get ahead of a break-out on the upside of the congestion area.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● According to Refinitiv, the company's ESG score for its industry is good.
Strengths● Over the past four months, analysts' average price target has been revised upwards significantly.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses● With a 2024 P/E ratio at 32.72 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● With an enterprise value anticipated at 3.84 times the sales for the current fiscal year, the company turns out to be overvalued.
● The company appears highly valued given the size of its balance sheet.
● The valuation of the company is particularly high given the cash flows generated by its activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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