NVENT ELECTRIC PLC (NVT)
IE00BDVJJQ56 - Common Stock
NVT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 90 industry peers in the Electrical Equipment industry. While NVT belongs to the best of the industry regarding profitability, 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
NVT had positive earnings in the past year.
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
NVT has a Return On Assets of 8.33%. This is amongst the best in the industry. NVT outperforms 89.89% of its industry peers.
NVT has a better Return On Equity (17.54%) than 91.01% of its industry peers.
NVT's Return On Invested Capital of 8.95% is amongst the best of the industry. NVT outperforms 84.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVT is in line with the industry average of 9.55%.
The last Return On Invested Capital (8.95%) for NVT is above the 3 year average (8.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 17.54% | ||
| ROIC | 8.95% |
ROA(3y)7.73%
ROA(5y)5.38%
ROE(3y)14.54%
ROE(5y)10.05%
ROIC(3y)8.69%
ROIC(5y)7.85%
1.3 Margins
The Profit Margin of NVT (16.95%) is better than 96.63% of its industry peers.
NVT's Profit Margin has improved in the last couple of years.
NVT has a Operating Margin of 19.13%. This is amongst the best in the industry. NVT outperforms 96.63% of its industry peers.
In the last couple of years the Operating Margin of NVT has grown nicely.
NVT has a Gross Margin of 40.87%. This is amongst the best in the industry. NVT outperforms 91.01% 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 | 19.13% | ||
| PM (TTM) | 16.95% | ||
| GM | 40.87% |
OM growth 3Y10.73%
OM growth 5Y2.73%
PM growth 3YN/A
PM growth 5Y10.76%
GM growth 3Y3.13%
GM growth 5Y0.77%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NVT is still creating some value.
Compared to 1 year ago, NVT has about the same amount of shares outstanding.
NVT has less shares outstanding than it did 5 years ago.
NVT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.27 indicates that NVT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.27, NVT is in the better half of the industry, outperforming 73.03% of the companies in the same industry.
The Debt to FCF ratio of NVT is 3.86, which is a good value as it means it would take NVT, 3.86 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.86, NVT is doing good in the industry, outperforming 74.16% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that NVT is somewhat dependend on debt financing.
NVT has a worse Debt to Equity ratio (0.68) than 61.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 3.27 |
ROIC/WACC1.04
WACC8.59%
2.3 Liquidity
NVT has a Current Ratio of 1.83. This is a normal value and indicates that NVT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NVT (1.83) is comparable to the rest of the industry.
NVT has a Quick Ratio of 1.36. This is a normal value and indicates that NVT is financially healthy and should not expect problems in meeting its short term obligations.
NVT has a Quick ratio (1.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
NVT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.04%.
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 8.08% in the last year.
Measured over the past years, NVT shows a quite strong growth in Revenue. The Revenue has been growing by 8.07% on average per year.
EPS 1Y (TTM)2.04%
EPS 3Y26.55%
EPS 5Y21.37%
EPS Q2Q%-25%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y17.76%
Revenue growth 5Y8.07%
Sales Q2Q%-8.94%
3.2 Future
The Earnings Per Share is expected to grow by 4.35% on average over the next years.
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.
EPS Next Y-1.19%
EPS Next 2Y2.23%
EPS Next 3Y4.35%
EPS Next 5YN/A
Revenue Next Year-0.91%
Revenue Next 2Y2.36%
Revenue Next 3Y2.1%
Revenue Next 5Y10.84%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 26.11 indicates a quite expensive valuation of NVT.
77.53% of the companies in the same industry are more expensive than NVT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.20. NVT is around the same levels.
NVT is valuated rather expensively with a Price/Forward Earnings ratio of 24.50.
Based on the Price/Forward Earnings ratio, NVT is valued a bit cheaper than 76.40% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, NVT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 24.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVT is valued a bit cheaper than the industry average as 76.40% of the companies are valued more expensively.
79.78% of the companies in the same industry are more expensive than NVT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.06 | ||
| EV/EBITDA | 18.9 |
4.3 Compensation for Growth
The excellent profitability rating of NVT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.22
EPS Next 2Y2.23%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, NVT is not a good candidate for dividend investing.
NVT's Dividend Yield is rather good when compared to the industry average which is at 1.76. NVT pays more dividend than 86.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.21, NVT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
On average, the dividend of NVT grows each year by 14.84%, which is quite nice.
NVT has been paying a dividend for over 5 years, so it has already some track record.
NVT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)14.84%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
21.61% of the earnings are spent on dividend by NVT. This is a low number and sustainable payout ratio.
NVT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.61%
EPS Next 2Y2.23%
EPS Next 3Y4.35%
NVENT ELECTRIC PLC
NYSE:NVT (11/22/2024, 8:04:00 PM)
After market: 78.35 +0.01 (+0.01%)78.34
+0.38 (+0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Dividend Growth(5Y)
DP
Div Incr Years
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Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 24.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 17.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.13% | ||
| PM (TTM) | 16.95% | ||
| GM | 40.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.04%
EPS 3Y26.55%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.08%
Revenue growth 3Y17.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y