NYSE:NVT is not too expensive for the growth it is showing.

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.

Unpacking NYSE:NVT's Growth Rating

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:NVT was assigned a score of 7 for growth:

• The Earnings Per Share has grown by an nice 16.30% over the past year.
• Measured over the past years, NVT shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.37% on average per year.
• Looking at the last year, NVT shows a quite strong growth in Revenue. The Revenue has grown by 14.67% in the last year.
• 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 9.17% on average over the next years. This is quite good.
• Based on estimates for the next years, NVT will show a quite strong growth in Revenue. The Revenue will grow by 10.84% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Assessment of NYSE:NVT

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:NVT, the assigned 5 reflects its valuation:

• Based on the Price/Earnings ratio, NVT is valued a bit cheaper than the industry average as 75.56% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of NVT to the average of the S&P500 Index (30.01), we can say NVT is valued slightly cheaper.
• 77.78% of the companies in the same industry are more expensive than NVT, based on the Price/Forward Earnings ratio.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVT indicates a somewhat cheap valuation: NVT is cheaper than 77.78% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, NVT is valued cheaply inside the industry as 82.22% of the companies are valued more expensively.
• The excellent profitability rating of NVT may justify a higher PE ratio.

A Closer Look at Health for NYSE:NVT

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:NVT has achieved a 6 out of 10:

• NVT has an Altman-Z score of 3.58. This indicates that NVT is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of NVT (3.58) is better than 70.00% of its industry peers.
• The Debt to FCF ratio of NVT is 3.34, which is a good value as it means it would take NVT, 3.34 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 3.34, NVT is doing good in the industry, outperforming 74.44% of the companies in the same industry.
• NVT has a Current Ratio of 2.18. This indicates that NVT is financially healthy and has no problem in meeting its short term obligations.
• With a decent Current ratio value of 2.18, NVT is doing good in the industry, outperforming 62.22% of the companies in the same industry.
• NVT's Quick ratio of 1.49 is fine compared to the rest of the industry. NVT outperforms 61.11% of its industry peers.

Assessing Profitability for NYSE:NVT

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:NVT, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 9.32%, NVT belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
• NVT's Return On Equity of 17.53% is amongst the best of the industry. NVT outperforms 91.11% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 10.24%, NVT belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
• The 3 year average ROIC (8.69%) for NVT is below the current ROIC(10.24%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 16.59%, NVT belongs to the top of the industry, outperforming 97.78% of the companies in the same industry.
• NVT's Profit Margin has improved in the last couple of years.
• NVT has a better Operating Margin (19.28%) than 95.56% of its industry peers.
• In the last couple of years the Operating Margin of NVT has grown nicely.
• NVT has a Gross Margin of 41.18%. This is amongst the best in the industry. NVT outperforms 92.22% of its industry peers.

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

Check the latest full fundamental report of NVT for a complete fundamental analysis.

Keep in mind

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.