Schneider Electric (OTCPK:SBGSY)
has made a series of moves over the years to position itself as a
leading player in automation and control, low and medium-voltage
products, and electrical distribution, but it hasn't done shareholders
all that much good. Relative to ABB (NYSE:ABB), Rockwell (NYSE:ROK), and Siemens (OTCPK:SIEGY),
Schneider shares have been laggards over the past few years and the
company has seen erosion in both margins and returns on capital.
I
believe energy efficiency and automation are trends that are simply not
going to go away in the coming years, and I think Schneider is
well-positioned to reap benefits from them. That said, I can understand
why investors are nervous about management's capital allocation
priorities and its ability to drive meaningful improvement in financial
operating metrics. While Schneider is not my top pick from either a
valuation or quality standpoint, there does seem to be a potential
opportunity here at this price that investors may want to consider.
Continue here:
Schneider Electric Looking To Earn Back Some Investor Love
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