I’ve been a fan of Schneider Electric (OTCPK:SBGSF) for some time and the shares have done quite well over the last five years as the Street has come around to this strong player in automation, electrification, industrial software, grid automation and data/IoT growth. I have had some qualms about valuation, though, and I’m not entirely surprised that the share have lagged a bit since my last update.
I’m quite bullish on the growth prospects in electrification, including opportunities to facilitate automation and commercial building modernization, as well as grid modernization, not to mention Schneider’s leverage to industrial automation, industrial software, and data center infrastructure. I don’t believe mid-single-digit growth (4% for revenue, <5% for FCF) is a particularly aggressive assumption, and while these shares aren’t a screaming value today, I think they’re a solid long-term GARP option in an industrial sector that doesn’t offer a lot of clear bargains.
Read more here:
Schneider Electric Remains A Well-Rounded Play On Secular Growth Themes With A Reasonable Valuation
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