Schneider Electric Infrastructure Downgraded to 'Sell' by MarketsMOJO Due to High Debt and Poor Growth

Schneider Electric Infrastructure, a largecap company in the capital goods industry, has recently been downgraded to a 'Sell' by MarketsMOJO on July 1, 2024. This decision was based on several factors, including the company's high debt-to-equity ratio of 7.54 times, which is significantly higher than the industry average. Additionally, the company has shown poor long-term growth with net sales only increasing by an annual rate of 9.74% over the last 5 years.
Furthermore, Schneider Electric Infrastructure recently declared negative results in March 2024 after 4 consecutive positive quarters. Their profits have fallen by 92.6% and their operating profit to interest ratio is at its lowest at 2.26 times. The company's PBT less OI has also fallen by 14.89%. With a ROCE of 34.4, the company's valuation is considered very expensive with an enterprise value to capital employed ratio of 27.8.

On the other hand, the stock is currently trading at a discount compared to its average historical valuations. It has also shown healthy long-term growth with operating profit increasing by an annual rate of 130.31%. Technically, the stock is in a mildly bullish range with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend.

Institutional investors have also shown an increasing interest in the company, with their stake increasing by 0.51% over the previous quarter. They currently hold 4.12% of the company and have better resources and capabilities to analyze the fundamentals of companies compared to retail investors.

Despite its market-beating performance in the long term, with a return of 247.26% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months, MarketsMOJO has downgraded Schneider Electric Infrastructure to a 'Sell' due to its high debt and poor long-term growth. Investors should carefully consider these factors before making any investment decisions.