NYSE:NVT is showing decent growth, but is still valued reasonably.

Last update: Aug 7, 2024

Here's NVENT ELECTRIC PLC (NYSE:NVT) for you, a growth stock our stock screener believes is undervalued. NYSE:NVT is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Assessing Growth for NYSE:NVT

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:NVT scores a 7 out of 10:

NVT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.30%, which is quite good.
The Earnings Per Share has been growing by 21.37% on average over the past years. This is a very strong growth
NVT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.19%.
The Revenue has been growing by 8.07% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
NVT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.84% yearly.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Assessing Valuation for NYSE:NVT

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:NVT has received a 5 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of NVT indicates a somewhat cheap valuation: NVT is cheaper than 77.17% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.66. NVT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio, NVT is valued cheaper than 80.43% of the companies in the same industry.
78.26% of the companies in the same industry are more expensive than NVT, based on the Enterprise Value to EBITDA ratio.
NVT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NVT is cheaper than 78.26% of the companies in the same industry.
NVT has an outstanding profitability rating, which may justify a higher PE ratio.

Health Insights: NYSE:NVT

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:NVT, the assigned 5 reflects its health status:

An Altman-Z score of 3.30 indicates that NVT is not in any danger for bankruptcy at the moment.
NVT has a better Altman-Z score (3.30) than 71.74% of its industry peers.
The Debt to FCF ratio of NVT is 3.71, which is a good value as it means it would take NVT, 3.71 years of fcf income to pay off all of its debts.
NVT's Debt to FCF ratio of 3.71 is fine compared to the rest of the industry. NVT outperforms 73.91% of its industry peers.

Exploring NYSE:NVT's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:NVT has achieved a 8:

NVT has a better Return On Assets (9.37%) than 89.13% of its industry peers.
The Return On Equity of NVT (18.01%) is better than 90.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.91%, NVT belongs to the top of the industry, outperforming 83.70% of the companies in the same industry.
The last Return On Invested Capital (9.91%) for NVT is above the 3 year average (8.69%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 17.02%, NVT belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
NVT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.90%, NVT belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
NVT's Operating Margin has improved in the last couple of years.
NVT has a better Gross Margin (41.04%) than 92.39% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of NVT

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.