Scale
€40.15bnPremium research · Schneider Electric · 18 August 2026 · EN
Everyone can see the future.
Who will capture the value?
Schneider connects electrification, automation and AI infrastructure through an integrated platform. The quality is evident. At the current price, the margin of safety is not.
MITUXA VERDICT
WATCHMedium risk · Medium convictionReference price€300.60
Base fair value€210–220
Interest zone€235–250
High conviction< €210
BEYOND THE OBVIOUS
The value is not only
in the first sale.
Schneider occupies a rare position across power distribution, secure power, cooling, automation and industrial software. This integrated architecture reduces interfaces and execution risk for customers.
The decisive economic mechanism is the ability to turn an initial project into a durable installed base: equipment, services, modernisation, software and operating data can extend the relationship for decades.
Systems are growing quickly but carry a lower near-term gross margin. The thesis requires them to become a source of Products, Services, Software and recurring cash flows over time.
THE INVESTMENT CASE
Three numbers that frame the decision
Profitability
18.7%adjusted EBITA margin
Excellent profitability, rising to 19.3% in the first half of 2026.Cash generation
€4.64bnfree cash flow
Cash conversion must confirm the quality of project-led growth.VALUATION
An exceptional business.
A share price that requires patience.
At €300.60, the market already discounts substantial success: sustained data-centre investment, margin expansion towards roughly 22%, value creation from AVEVA and Cognite, and Systems converting into recurring revenue. Our base fair-value range is €210–220.
WHAT COULD BREAK THE THESIS
- A sustained slowdown in data-centre investment.
- Systems growth without a subsequent mix or working-capital improvement.
- AVEVA and Cognite fail to deliver retention, synergies or adequate capital returns.
- Persistent free-cash-flow weakness or structural ROCE below 15%.
- Multiple compression despite satisfactory operating execution.
COMPLETE RESEARCH · EN
Read the full
MITUXA report.
The 25-page report examines the business model, installed base, moat, data centres and AI, AVEVA, Cognite, financial quality, capital allocation, major competitors, valuation and invalidation conditions.
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