Author: admin

Schneider Electric’s (EPA:SU) stock is up by a considerable 13% over the past month. Given the company’s impressive performance, we decided to study its financial indicators more closely as a company’s financial health over the long-term usually dictates market outcomes. Particularly, we will be paying attention to Schneider Electric’s ROE today.

Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.

How Do You Calculate Return On Equity?

The formula for return on equity is:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity

So, based on the above formula, the ROE for Schneider Electric is:

16% = €4.1b ÷ €26b (Based on the trailing twelve months to June 2023).

The ‘return’ is the yearly profit. So, this means that for every €1 of its shareholder’s investments, the company generates a profit of €0.16.

Why Is ROE Important For Earnings Growth?

We have already established that ROE serves as an efficient profit-generating gauge for a company’s future earnings. Based on how much of its profits the company chooses to reinvest or “retain”, we are then able to evaluate a company’s future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.

A Side By Side comparison of Schneider Electric’s Earnings Growth And 16% ROE

To begin with, Schneider Electric seems to have a respectable ROE. Further, the company’s ROE is similar to the industry average of 16%. This probably goes some way in explaining Schneider Electric’s moderate 12% growth over the past five years amongst other factors.

We then performed a comparison between Schneider Electric’s net income growth with the industry, which revealed that the company’s growth is similar to the average industry growth of 9.9% in the same 5-year period.

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. What is SU worth today? The intrinsic value infographic in our free research report helps visualize whether SU is currently mispriced by the market.

Is Schneider Electric Making Efficient Use Of Its Profits?

Schneider Electric has a significant three-year median payout ratio of 51%, meaning that it is left with only 49% to reinvest into its business. This implies that the company has been able to achieve decent earnings growth despite returning most of its profits to shareholders.

Moreover, Schneider Electric is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Based on the latest analysts’ estimates, we found that the company’s future payout ratio over the next three years is expected to hold steady at 43%. Therefore, the company’s future ROE is also not expected to change by much with analysts predicting an ROE of 17%.

Conclusion

On the whole, we feel that Schneider Electric’s performance has been quite good. We are particularly impressed by the considerable earnings growth posted by the company, which was likely backed by its high ROE. While the company is paying out most of its earnings as dividends, it has been able to grow its earnings in spite of it, so that’s probably a good sign. Having said that, the company’s earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the company’s future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.

About Schneider Electric

Schneider’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On.

Our mission is to be your digital partner for Sustainability and Efficiency.

We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries.

Media Contact
Company Name: ABC Private Limited
Contact Person: Media Relations
Email: Send Email
Country: India
Website: https://www.se.com/in/en/

Press Release Distributed by ABNewswire.com

To view the original version on ABNewswire visit: Is Schneider Electric S.E.\’s (EPA:SU) Latest Stock Performance A Reflection Of Its Financial Health?

DUBAI, UAE – Dec 16, 2023 – Chalhoub Group, partner and creator of luxury experiences in the Middle East, has initiated a sustainability services agreement with Schneider Electric, a leader in digital transformation of energy management and automation to transform its suppliers’ carbon footprint roadmap across the region. The announcement was made amid the 28th session of the Conference of the Parties (COP28) to the UN Framework Convention on Climate Change (UNFCCC), being held at Expo City Dubai.

The agreement represents the second phase in Chalhoub Group’s journey to attaining Net Zero by 2040.

“The Middle East is among one of the biggest luxury markets globally and has demonstrated growth and resilience despite supply chain disruptions and worldwide affairs. Our partnership with Schneider Electric is testament to our commitment to a more sustainable future for this sector. We recognize the challenges posed by reducing Scope 1, 2 and especially Scope 3 emissions, and this partnership is poised to accelerate our sustainability journey and meet our net-zero commitments,” said Florence Bulté, Chief Sustainability Officer, Chalhoub Group.

“Incorporating climate action into core business strategies is no longer an option; it’s a necessity. We are proud to play an integral role in Chalhoub Group’s sustainability journey and are confident that we can set new benchmarks in decarbonization and sustainability, not just for the company, but for the entire industry,” said Farrukh Shad, Head of APAC/MEA, Schneider Electric’s Sustainability Business.

Chalhoub Group aims to reduce absolute Scope 1 and 2 GHG emissions by 50.4% by 2032 from a 2021 base year*. The company also commits to reduce absolute Scope 3 GHG emissions from purchased goods and services, upstream transport and distribution, upstream leased assets and investments by 30% within the same timeframe. These include emissions associated with activities such as purchasing goods and services, transportation and distribution (both upstream and downstream), waste generated, business travel, employee commuting, and the end-of-life treatment of sold products.

The collaboration with Schneider Electric will primarily target selected suppliers in the ‘Purchased Goods and Services’ category, who account for most of the Group’s Scope 3 emissions. In 2023, a diagnostic mapping of Chalhoub Group’s suppliers was conducted to identify those with high emissions that had yet to establish science-based carbon reduction targets. After categorising the supplier base, a service agreement was signed to mark the next major milestone, the launch of a supplier engagement programme.

Schneider Electric’s decarbonization consultancy services will include monthly training sessions for selected suppliers, data collection and gathering through extensive surveying, a tool to track Scope 3 emissions, as well as guidelines to complement suppliers’ decarbonization journeys. 

According to a survey issued by Boston Consulting Group, the Middle Eastern luxury goods market, estimated at nearly $15.85 billion in 2023, is expected to double in size by 2030 and grow to $32-$37 billion, driven by the UAE and especially Saudi Arabia. However, the sector is responsible for over $2 billion in greenhouse gas emissions annually, which amounts to approximately 4% of the world’s total output, according to a report by McKinsey.

Countries across the Gulf region have set ambitious targets for developing more sustainable economies. In 2021, Schneider Electric launched a new range of decarbonization and sustainability consulting services for companies based in the Gulf. These services include the identification of energy efficiency savings, carbon offset programs, offsite renewable energy sourcing, electric mobility advising, and supply chain optimization.

About Schneider Electric

Schneider’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On. Our mission is to be your digital partner for Sustainability and Efficiency.

We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries.

We are the most local of global companies. We are advocates of open standards and partnership ecosystems that are passionate about our shared Meaningful Purpose, Inclusive and Empowered values.

Media Contact
Company Name: ABC Private Limited
Contact Person: Media Relations
Email: Send Email
Country: India
Website: https://www.se.com/in/en/

Press Release Distributed by ABNewswire.com

To view the original version on ABNewswire visit: Chalhoub Group & Schneider Electric to Drive Climate Action in the Middle East\’s Luxury Retail Sector

Schneider Electric announced that its IEC 61499 Integrated Development Environment (IDE), EcoStruxure Automation Expert, can now also deploy to Phoenix Contact’s PLCnext automation equipment. Such independence from vendor hardware represents a key milestone in industrial automation’s transformation to open and software-defined automation.

Both Schneider Electric equipment and PLCnext share the same runtime software technology, giving industrial operators new levels of engineering and maintenance efficiency due to far greater application portability.

Developed and managed by UniversalAutomation.org (an independent, non-profit association) the shared IEC 61499 runtime engine enables software applications that are independent of the automation hardware on which they execute. The promise of software defined automation is that industrial companies can mix and match automation solutions and longer be constrained by the traditional “full stack” vendor-proprietary automation development platforms.

EcoStruxure Automation Expert was designed to decouple automation software from hardware and integrate equipment from different automation vendors, providing greater freedom, agility and simplicity for industrial automation system integrators and OEMs, who can now develop and deploy applications to one or more PLCnext controllers using EcoStruxure Automation Expert.

Harry Forbes, ARC Advisory Group, commented, “This development illustrates the value of a common runtime software environment in automation systems, as advocated by Universal Automation.  Software development options for PLCnext now include Phoenix Contact, Schneider Electric, and various Linux tools.  That level of choice for SIs and end users is a taste of the future of industrial automation.”

About Schneider Electric

Schneider’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On.

Schneider Electric Our mission is to be your digital partner for Sustainability and Efficiency.

We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries.

Media Contact
Company Name: ABC Private Limited
Contact Person: Media Relations
Email: Send Email
Country: India
Website: https://www.se.com/in/en/

Press Release Distributed by ABNewswire.com

To view the original version on ABNewswire visit: Schneider Electric’s IEC 61499 IDE EcoStruxure Automation Expert Can Deploy to Phoenix Contact’s PLCnext Automation Equipment

Schneider Electric, the leader in the digital transformation of energy management and automation, today called for greater collective action to decarbonize the global economy and ensure a fair and inclusive transition to net zero, and detailed the actions it is taking at the upcoming COP28 United Nations Climate Change Conference to support these efforts.

Thousands of government and private-sector leaders, climate experts, NGOs, youth groups and other stakeholders will gather for the event, which takes place in Dubai on November 30-December 12, to foster collaboration, ideas and initiatives to tackle climate change and deliver on common sustainability ambitions. A key focus will be the publication of the first Global Stocktake, a comprehensive assessment of progress achieved since the 2015 Paris Climate Change Agreement.

With energy at the heart of over 70 per cent of carbon emissions, Schneider Electric delegates will highlight the untapped potential of electrification, automation and digital technologies and showcase the social and economic benefits of deploying such solutions in industries, buildings, homes, data centers, infrastructure, and transportation.

“We have plenty of technologies at our disposal today. It’s time to recognize that deploying these at much greater speed and scale brings social, environmental, economic and job-creation benefits, that they can lower emissions and costs faster than many realize – and that inaction is simply not an option,” said Peter Herweck, CEO of Schneider Electric.

The company will host discussions and showcase solutions in the COP28 Technology & Innovation Hub. Schneider Electric delegates will participate in a number of panel discussions to share news and insights on corporate decarbonization, youth empowerment and supply chain engagement. In addition, Schneider will:

• release fresh geographically relevant insights on ways to accelerate decarbonization, building on its Back to 2050 research
• extend several Schneider Electric Foundation partnerships, in line with its longstanding mission to support the empowerment of younger generations and women through education and training in the energy sector
• announce new strategic partnerships and initiatives to extend the decarbonization of its supply chain and launch a report on supply chain decarbonization developed in partnership with Women Action Sustainability (WAS).

“As the world’s population and economies continue to grow, we must develop energy efficiency as well as clean, affordable energy. New technologies of digitization of everything leveraging IoT, big data and AI, as well as low-carbon electrification are the two major disruptors of our relationship to energy. Accelerated adoption of these technologies and new ways of designing are essential pillars of innovative, collective, fair and inclusive climate action,” said Jean-Pascal Tricoire, Chairman of Schneider Electric. “The corporate world, including impact companies like ours, needs to be a player and enabler of sustainability action worldwide, inspiring and supporting governments, societies, the academic and business world, and others, to accelerate action.”

Related resources:

• See Schneider Electric’s dedicated site on COP28 for more insights and commentary
• Schneider is regularly recognized for its environmental, social and governance performance. See the Awards page on SE.com for more.

About Schneider Electric

Schneider’s purpose is to empower all to make the most of our energy and resources, bridging progress and sustainability for all. We call this Life Is On.

Our mission is to be your digital partner for Sustainability and Efficiency.

We drive digital transformation by integrating world-leading process and energy technologies, end-point to cloud connecting products, controls, software and services, across the entire lifecycle, enabling integrated company management, for homes, buildings, data centers, infrastructure and industries.

We are the most local of global companies. We are advocates of open standards and partnership ecosystems that are passionate about our shared Meaningful Purpose, Inclusive and Empowered values.

Media Contact
Company Name: ABC Private Limited
Contact Person: Media Relations
Email: Send Email
Country: India
Website: https://www.se.com/in/en/

Press Release Distributed by ABNewswire.com

To view the original version on ABNewswire visit: Ahead of COP28, Schneider Electric Calls for Greater Action on Decarbonization and Inclusion