SIEGY - Schneider Electric's Strong Performance And Long-Term Potential Complicate The Valuation Argument
- While Schneider Electric's second quarter performance wasn't eye-popping in the broader context of the short-cycle recovery that's driving multi-industrials, the relative performance in electrification and automation was strong.
- Short-cycle recoveries can drive Energy Management and Industrial Automation a little further, and longer-cycle industries will start contributing more in 2022.
- Schneider has strong share in multiple markets that is likely to grow noticeably above GDP growth - including automation, electrification, decarbonization, and digitalization.
- I can't argue that Schneider is cheap on cash-flow or multiples-based valuation approaches, but there is still at least a "pay up for superior quality" angle in play.
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Schneider Electric's Strong Performance And Long-Term Potential Complicate The Valuation Argument