Interested In Schneider Electric S.E. (EPA:SU)? Here's What Its Recent Performance Looks Like
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For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Schneider Electric S.E.'s (EPA:SU) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
See our latest analysis for Schneider Electric
How Well Did SU Perform?
SU's trailing twelve-month earnings (from 31 December 2018) of €2.4b has increased by 5.0% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 6.8%, indicating the rate at which SU is growing has slowed down. What could be happening here? Well, let’s take a look at what’s going on with margins and if the rest of the industry is facing the same headwind.
In terms of returns from investment, Schneider Electric has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. Furthermore, its return on assets (ROA) of 6.0% is below the FR Electrical industry of 6.0%, indicating Schneider Electric's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Schneider Electric’s debt level, has increased over the past 3 years from 10% to 11%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 51% to 34% over the past 5 years.
What does this mean?
Though Schneider Electric's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Schneider Electric gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Schneider Electric to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for SU’s future growth? Take a look at our free research report of analyst consensus for SU’s outlook.
Financial Health: Are SU’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2018. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
