Daily Stock Analysis: Schneider Electric

Schneider Electric SA with the ticker (SBGSY), is a large-cap specialty industrial machinery company operating in the industrials business sector. This is the third of five industrials candidates competing for the forty-fourth slot in the Viital folio. It is my first ever report on Schneider Electric SA for my Viital portfolio or any of my previous six portfolios.

France-based Schneider Electric is a leading global supplier to industrial, utility, data center, and energy customers. The company's products range from ground-level equipment to top-level analytics and execution software.

Roughly 75% of its revenue comes from its low- and medium-voltage, while revenue from its automation division drives the remaining 25%. The company is the number-two and number-four supplier, respectively, in discrete (for example, manufacturing) and process (for example, fluid processing) automation.

However, it holds the leading position in process safety systems. At the group level, software and services contribute about 18% of sales, integrated systems another 23%, and individual products (components and equipment) the final 59%.)

The company was founded in 1836 and is headquartered in Rueil-Malmaison, France.

Three key data points gauge any dividend equity or fund such as Schneider Electric SA:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

SBGSY Price

Schneider’s price per share was $26.67 as of yesterday's market close. One year ago it’s price was $34.98. Thus, SBGSY share price fell $8.31 or about 24% in the past year.

If Schneider’s stock trades in the range of $20.00 to $36.00 this next year, its recent $26.67 share price might rise by $1.53 to reach $28.20 by next year. My $1.53 upside estimate is $0.04 over the average one-year price increase for the past ten years.

SBGSY Dividends

Schneider Electric SA’s most recently declared annual dividend of $0.614 was paid June 3rd, to shareholders on record as of May 17th.

Since June 19, 2009, Schneider Electric SA has paid variable Annual dividends. The current forward looking annual dividend of $0.61 equates to an annual yield of 2.3% as of yesterdays $26.67 share price.

SBGSY Returns

Adding the $0.61 Eagle annual dividend to my estimated one-year price upside estimate of $1.53 shows a $2.14 potential gross gain, per share, to be reduced by any costs to trade SBGSY shares.

At yesterday's $26.67 closing price, a little under $1000 would buy 37 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.27 per share.

Subtract that maybe $0.27 brokerage cost from my estimated $2.14 gross gain estimate per share results in a net gain of $1.87 X 37 shares = $69.19, for a 6.9% net gain including a 2.3% forward looking annual dividend yield.

Over the next year our $1K investment in SBGSY shares should generate $23.00 in cash dividends. Of course, a single share of SBGSY stock bought at yesterday's $26.67 price is $3.67 more than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this NOT a good time to pick up Schneider Electric SA shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is $3.67 less than yesterday’s single share price. Consider yourself alerted. It's a sign. Wait for Schneider’s share price to drop to $24.80

All of the estimates above are speculation based on the past history of Schneider Electric SA. Only time and money invested in this stock will determine its market value.

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