Schneider Electric
How a thematic sector view on the industrial internet becomes a stock-specific Buy with a target blended from multiples and a DCF.
- Rating
- Price target
- EUR 80.00
- Published
- March 12, 2015
- Length
- 21 pages
- Sector
- Industrials
- Market
- Europe
What the analyst argued
Nomura initiated Schneider Electric at Buy with an EUR 80 target, calling it the best-positioned large industrial for the industrial internet thanks to established positions across the automation hierarchy, energy-efficiency expertise, and an early start digitising its own supply chain. Emerging markets were 44% of sales, a mixed blessing with China construction soft, but oil and gas exposure was the lowest among peers and US data-centre demand was improving. Management's reiterated 13-17% EBITA margin target, EUR 1.5bn cost programme and a EUR 1.0-1.5bn buyback supported above-consensus EPS and scope for multiple expansion.
Lead analysts: Alexander Virgo, Maggie Paxton, Felix Wienen.
Inside the report
- 01Key data on Schneider Electric
- 02Smart through and through
- 03Best positioned large cap for industrial internet
- 04Growth in connected devices by sector
- 05Grid automation and end-market positioning
- 06Room for improvement (profitability)
- 07Valuation (EV/sales, relative multiples, SOTP, DCF)
- 08Key risks to our investment case
- 09Fiscal Headline Data
- 10Cash Flow
- DCF
- Sum-of-the-parts
- P/E
- EV/EBITDA
- Comparable companies
Includes a multi-year earnings model with the income statement, balance sheet, and cash flow forecasts the valuation is built on.
Read the report
21 pages
Tap the cover to open the PDF.Published by Nomura on March 12, 2015 and hosted here for educational use; the report and everything in it belongs to Nomura. The rating, estimates, and price target are the analysts’ view on that date, more than a decade ago, and are not a recommendation today. Copy first uploaded October 5, 2026.
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