A lot of investors still have a grudge against Schneider Electric (OTCPK:SBGSY)
(SU.PA), due mostly I believe to a historical track record that left a
lot to be desired, including an M&A policy that saw a lot of capital
flowing out, reducing ROIC, and not always a lot of quality coming back
in. Starting with the Invensys acquisition in 2014, though, and maybe
even including Telvent in 2011, management has been making better
choices and has crafted a company with a strong position in
electrification and automation - two of the more attractive business
areas for the industrial sector in the coming decade.
As
things stand today, Schneider is one of the better-performing European
multi-industrials, and I like not only the company's strong position in
electrification (across residential, industrial, commercial, and data
center markets) but also its improving software and control-heavy
automation portfolio. With a roughly 30% year-to-date run, though, I
can't be as bullish as before. I do still like this company and see it
as a share-gainer in its markets for many years, but the prospective
return isn't high enough.
Click here for more:
Schneider Electric Standing Out In An Increasingly Challenging Market
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