NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
USA - NYSE:NVT - IE00BDVJJQ56 - Common Stock
96.2 USD
-0.15 (-0.16%)
96.2 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to NVT. NVT was compared to 92 industry peers in the Electrical Equipment industry. NVT has an excellent profitability rating, but there are some minor concerns on its financial health. NVT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NVT was profitable.
In the past year NVT had a positive cash flow from operations.
Of the past 5 years NVT 4 years were profitable.
In the past 5 years NVT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.71%, NVT belongs to the top of the industry, outperforming 90.22% of the companies in the same industry.
The Return On Equity of NVT (16.68%) is better than 90.22% of its industry peers.
The Return On Invested Capital of NVT (7.48%) is better than 77.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NVT is below the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 16.68% | ||
| ROIC | 7.48% |
ROA(3y)7.43%
ROA(5y)5.41%
ROE(3y)14.31%
ROE(5y)10.38%
ROIC(3y)7.53%
ROIC(5y)7.06%
1.3 Margins
With an excellent Profit Margin value of 17.75%, NVT belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
In the last couple of years the Profit Margin of NVT has grown nicely.
The Operating Margin of NVT (16.75%) is better than 91.30% of its industry peers.
NVT's Operating Margin has improved in the last couple of years.
NVT has a Gross Margin of 39.20%. This is amongst the best in the industry. NVT outperforms 86.96% of its industry peers.
In the last couple of years the Gross Margin of NVT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.75% | ||
| PM (TTM) | 17.75% | ||
| GM | 39.2% |
OM growth 3Y7.21%
OM growth 5Y2.51%
PM growth 3Y-0.12%
PM growth 5Y1.79%
GM growth 3Y1.68%
GM growth 5Y0.47%
2. Health
2.1 Basic Checks
NVT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NVT remains at a similar level compared to 1 year ago.
NVT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NVT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.06 indicates that NVT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.06, NVT is in the better half of the industry, outperforming 72.83% of the companies in the same industry.
NVT has a debt to FCF ratio of 4.55. This is a neutral value as NVT would need 4.55 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.55, NVT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that NVT is not too dependend on debt financing.
The Debt to Equity ratio of NVT (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 4.06 |
ROIC/WACC0.85
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.67 indicates that NVT should not have too much problems paying its short term obligations.
The Current ratio of NVT (1.67) is comparable to the rest of the industry.
NVT has a Quick Ratio of 1.20. This is a normal value and indicates that NVT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NVT (1.20) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for NVT have decreased strongly by -14.33% in the last year.
NVT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.44% yearly.
The Revenue has decreased by -4.84% in the past year.
NVT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.40% yearly.
EPS 1Y (TTM)-14.33%
EPS 3Y12.76%
EPS 5Y9.44%
EPS Q2Q%4.88%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%9.41%
3.2 Future
NVT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.48% yearly.
The Revenue is expected to grow by 9.02% on average over the next years. This is quite good.
EPS Next Y17.44%
EPS Next 2Y15.47%
EPS Next 3Y13.04%
EPS Next 5Y11.48%
Revenue Next Year20.15%
Revenue Next 2Y15.14%
Revenue Next 3Y12.01%
Revenue Next 5Y9.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NVT is valuated quite expensively with a Price/Earnings ratio of 34.98.
Compared to the rest of the industry, the Price/Earnings ratio of NVT indicates a somewhat cheap valuation: NVT is cheaper than 72.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, NVT is valued a bit more expensive.
NVT is valuated quite expensively with a Price/Forward Earnings ratio of 25.68.
Based on the Price/Forward Earnings ratio, NVT is valued a bit cheaper than the industry average as 76.09% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NVT to the average of the S&P500 Index (22.71), we can say NVT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 25.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVT is valued a bit cheaper than 73.91% of the companies in the same industry.
NVT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NVT is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.91 | ||
| EV/EBITDA | 24.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NVT may justify a higher PE ratio.
NVT's earnings are expected to grow with 13.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.01
PEG (5Y)3.71
EPS Next 2Y15.47%
EPS Next 3Y13.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, NVT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.03, NVT pays a better dividend. On top of this NVT pays more dividend than 84.78% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, NVT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of NVT has a limited annual growth rate of 2.02%.
NVT has been paying a dividend for over 5 years, so it has already some track record.
As NVT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.02%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
NVT pays out 21.98% of its income as dividend. This is a sustainable payout ratio.
NVT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.98%
EPS Next 2Y15.47%
EPS Next 3Y13.04%
96.2
-0.15 (-0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.61%
Inst Owner Change1.71%
Ins Owners0.78%
Ins Owner Change13.05%
Market Cap15.48B
Analysts83.53
Price Target98.23 (2.11%)
Short Float %2.28%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend0.77
Dividend Growth(5Y)2.02%
DP21.98%
Div Incr Years1
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.79%
Min EPS beat(2)-0.29%
Max EPS beat(2)7.88%
EPS beat(4)1
Avg EPS beat(4)-3.25%
Min EPS beat(4)-19.1%
Max EPS beat(4)7.88%
EPS beat(8)4
Avg EPS beat(8)0.87%
EPS beat(12)7
Avg EPS beat(12)3.29%
EPS beat(16)11
Avg EPS beat(16)4.26%
Revenue beat(2)2
Avg Revenue beat(2)3.06%
Min Revenue beat(2)1.27%
Max Revenue beat(2)4.85%
Revenue beat(4)2
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-13.41%
Max Revenue beat(4)4.85%
Revenue beat(8)3
Avg Revenue beat(8)-2.22%
Revenue beat(12)6
Avg Revenue beat(12)-0.96%
Revenue beat(16)10
Avg Revenue beat(16)1.12%
PT rev (1m)0.7%
PT rev (3m)33.37%
EPS NQ rev (1m)0.83%
EPS NQ rev (3m)4.75%
EPS NY rev (1m)5.31%
EPS NY rev (3m)6.19%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)5.92%
Revenue NY rev (1m)5.13%
Revenue NY rev (3m)6.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 25.68 | ||
| P/S | 4.68 | ||
| P/FCF | 39.91 | ||
| P/OCF | 33.3 | ||
| P/B | 4.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.02 |
EPS(TTM)2.75
EY2.86%
EPS(NY)3.75
Fwd EY3.89%
FCF(TTM)2.41
FCFY2.51%
OCF(TTM)2.89
OCFY3%
SpS20.54
BVpS21.86
TBVpS-6.93
PEG (NY)2.01
PEG (5Y)3.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.71% | ||
| ROE | 16.68% | ||
| ROCE | 9.46% | ||
| ROIC | 7.48% | ||
| ROICexc | 7.64% | ||
| ROICexgc | 40.06% | ||
| OM | 16.75% | ||
| PM (TTM) | 17.75% | ||
| GM | 39.2% | ||
| FCFM | 11.73% |
ROA(3y)7.43%
ROA(5y)5.41%
ROE(3y)14.31%
ROE(5y)10.38%
ROIC(3y)7.53%
ROIC(5y)7.06%
ROICexc(3y)7.87%
ROICexc(5y)7.32%
ROICexgc(3y)34.73%
ROICexgc(5y)37%
ROCE(3y)9.53%
ROCE(5y)8.93%
ROICexcg growth 3Y-20.8%
ROICexcg growth 5Y-13.31%
ROICexc growth 3Y1.13%
ROICexc growth 5Y1.61%
OM growth 3Y7.21%
OM growth 5Y2.51%
PM growth 3Y-0.12%
PM growth 5Y1.79%
GM growth 3Y1.68%
GM growth 5Y0.47%
F-Score4
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.55 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 48.37% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.22% | ||
| Profit Quality | 66.1% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.06 |
F-Score4
WACC8.8%
ROIC/WACC0.85
Cap/Depr(3y)47.03%
Cap/Depr(5y)43.3%
Cap/Sales(3y)2.23%
Cap/Sales(5y)2.06%
Profit Quality(3y)113.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.33%
EPS 3Y12.76%
EPS 5Y9.44%
EPS Q2Q%4.88%
EPS Next Y17.44%
EPS Next 2Y15.47%
EPS Next 3Y13.04%
EPS Next 5Y11.48%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%9.41%
Revenue Next Year20.15%
Revenue Next 2Y15.14%
Revenue Next 3Y12.01%
Revenue Next 5Y9.02%
EBIT growth 1Y-13.36%
EBIT growth 3Y14.59%
EBIT growth 5Y9.07%
EBIT Next Year39.52%
EBIT Next 3Y16.03%
EBIT Next 5Y13.77%
FCF growth 1Y-7.6%
FCF growth 3Y19.46%
FCF growth 5Y13.85%
OCF growth 1Y-2.58%
OCF growth 3Y19.87%
OCF growth 5Y13.84%