Yahoo Finance When Will Schneider Electric Infrastructure Limited (NSE:SCHNEIDER) Breakeven?
Schneider Electric Infrastructure Limited’s (NSE:SCHNEIDER): Schneider Electric Infrastructure Limited engages in designing, manufacturing, building, and servicing products and systems for electricity distribution in India and internationally. On 31 March 2018, the ₹22.81b market-cap posted a loss of -₹646.72m for its most recent financial year. As path to profitability is the topic on SCHNEIDER’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for SCHNEIDER, its year of breakeven and its implied growth rate.
View out our latest analysis for Schneider Electric Infrastructure
SCHNEIDER is bordering on breakeven, according to Electrical analysts. They expect the company to post a final loss in 2018, before turning a profit of ₹16.00m in 2019. So, SCHNEIDER is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which SCHNEIDER must grow year-on-year. It turns out an average annual growth rate of 146.79% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of SCHNEIDER’s upcoming projects, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I would like to bring into light with SCHNEIDER is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in SCHNEIDER’s case, it has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on SCHNEIDER, so if you are interested in understanding the company at a deeper level, take a look at SCHNEIDER’s company page on Simply Wall St. I’ve also compiled a list of important aspects you should look at:
Valuation: What is SCHNEIDER worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether SCHNEIDER is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Schneider Electric Infrastructure’s board and the CEO’s back ground.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
