BN · rank #9 · 2026-09-09
SU
PARIS · EUR · $195.82B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | -0.27 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +9.1% |
| Forward net margin Consensus forward net margin. | +12.2% |
| Net margin TTM Trailing twelve month net margin. | +11.3% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.9% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.52 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 1.85× |
| Analyst upside Spread between the consensus 12m target and the current price. | +10.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | — |
| Market cap (USD) | $195.82B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Schneider Electric is a global leader in energy management and industrial automation, providing integrated power distribution, cooling, and software solutions for utilities, industrial customers, and AI data center operators.
Rationale
Record H1 2026 organic revenue growth of 14%, raised margin guidance to 70–100 bps expansion, and the purpose-built NetShelter Power Shelf for NVIDIA GB200 NVL72 systems confirm Schneider is actively monetizing the AI data center power bottleneck rather than merely benefiting from sentiment rotation.
Material risks
- 1Hyperscalers and large cloud operators developing in-house power and cooling architectures could erode Schneider's systems-integration moat over time, particularly as AI rack densities standardize and the solution becomes easier to replicate or source from lower-cost competitors.
- 2Net financial debt of ~€15.4 billion against a debt-to-FCF of 1.85x leaves the balance sheet exposed if AI capex cycles turn down sharply, compressing the free cash flow that surged 244% YoY and currently underpins the investment thesis.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.