NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
USA - NYSE:NVT - IE00BDVJJQ56 - Common Stock
105.92 USD
-5.54 (-4.97%)
106.5 USD
+0.58 (+0.55%)
We assign a fundamental rating of 6 out of 10 to NVT. NVT was compared to 91 industry peers in the Electrical Equipment industry. NVT scores excellent on profitability, 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
NVT had positive earnings in the past year.
NVT had a positive operating cash flow in the past year.
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's Return On Assets of 8.90% is amongst the best of the industry. NVT outperforms 87.91% of its industry peers.
NVT's Return On Equity of 16.59% is amongst the best of the industry. NVT outperforms 89.01% of its industry peers.
NVT has a better Return On Invested Capital (7.89%) than 76.92% of its industry peers.
NVT had an Average Return On Invested Capital over the past 3 years of 7.52%. This is below the industry average of 10.45%.
The 3 year average ROIC (7.52%) for NVT is below the current ROIC(7.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.9% | ||
| ROE | 16.59% | ||
| ROIC | 7.89% |
ROA(3y)7.43%
ROA(5y)5.41%
ROE(3y)14.31%
ROE(5y)10.38%
ROIC(3y)7.52%
ROIC(5y)7.06%
1.3 Margins
NVT has a better Profit Margin (16.83%) than 92.31% of its industry peers.
NVT's Profit Margin has improved in the last couple of years.
The Operating Margin of NVT (16.17%) is better than 90.11% of its industry peers.
In the last couple of years the Operating Margin of NVT has grown nicely.
NVT's Gross Margin of 38.55% is amongst the best of the industry. NVT outperforms 87.91% 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 | 16.17% | ||
| PM (TTM) | 16.83% | ||
| GM | 38.55% |
OM growth 3Y7.21%
OM growth 5Y2.51%
PM growth 3Y-0.14%
PM growth 5Y1.78%
GM growth 3Y1.68%
GM growth 5Y0.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NVT is destroying value.
NVT has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NVT has been reduced compared to 5 years ago.
NVT has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of NVT is 3.94, which is a good value as it means it would take NVT, 3.94 years of fcf income to pay off all of its debts.
NVT's Debt to FCF ratio of 3.94 is fine compared to the rest of the industry. NVT outperforms 75.82% of its industry peers.
NVT has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NVT (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC9.06%
2.3 Liquidity
NVT has a Current Ratio of 1.57. This is a normal value and indicates that NVT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.57, NVT is in line with its industry, outperforming 42.86% of the companies in the same industry.
NVT has a Quick Ratio of 1.11. 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 of 1.11. This is comparable to the rest of the industry: NVT outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.00% over the past year.
The Earnings Per Share has been growing by 9.44% on average over the past years. This is quite good.
NVT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.31%.
NVT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.40% yearly.
EPS 1Y (TTM)1%
EPS 3Y12.76%
EPS 5Y9.44%
EPS Q2Q%44.44%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%34.78%
3.2 Future
Based on estimates for the next years, NVT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.48% on average per year.
NVT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.03% yearly.
EPS Next Y19.04%
EPS Next 2Y18.24%
EPS Next 3Y15.1%
EPS Next 5Y11.48%
Revenue Next Year21.35%
Revenue Next 2Y16.94%
Revenue Next 3Y13.65%
Revenue Next 5Y9.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 34.96, which means the current valuation is very expensive for NVT.
71.43% of the companies in the same industry are more expensive than NVT, based on the Price/Earnings ratio.
NVT is valuated rather expensively when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 26.96, the valuation of NVT can be described as expensive.
71.43% of the companies in the same industry are more expensive than NVT, based on the Price/Forward Earnings ratio.
NVT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 26.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVT is valued a bit cheaper than the industry average as 72.53% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NVT is valued a bit cheaper than the industry average as 72.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.17 | ||
| EV/EBITDA | 25.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NVT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NVT's earnings are expected to grow with 15.10% in the coming years.
PEG (NY)1.84
PEG (5Y)3.7
EPS Next 2Y18.24%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, 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 3.16. NVT pays more dividend than 84.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, NVT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of NVT has a limited annual growth rate of 1.99%.
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)1.99%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
NVT pays out 21.56% 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.
DP21.56%
EPS Next 2Y18.24%
EPS Next 3Y15.1%
105.92
-5.54 (-4.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change-2.65%
Ins Owners0.79%
Ins Owner Change1.84%
Market Cap17.05B
Revenue(TTM)3.58B
Net Income(TTM)602.10M
Analysts83.53
Price Target105.96 (0.04%)
Short Float %1.82%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.77
Dividend Growth(5Y)1.99%
DP21.56%
Div Incr Years1
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.91%
Min EPS beat(2)1.94%
Max EPS beat(2)7.88%
EPS beat(4)2
Avg EPS beat(4)2.01%
Min EPS beat(4)-1.51%
Max EPS beat(4)7.88%
EPS beat(8)4
Avg EPS beat(8)-0.54%
EPS beat(12)7
Avg EPS beat(12)2.62%
EPS beat(16)11
Avg EPS beat(16)3.84%
Revenue beat(2)2
Avg Revenue beat(2)4.29%
Min Revenue beat(2)3.74%
Max Revenue beat(2)4.85%
Revenue beat(4)3
Avg Revenue beat(4)1.68%
Min Revenue beat(4)-3.13%
Max Revenue beat(4)4.85%
Revenue beat(8)4
Avg Revenue beat(8)-1.31%
Revenue beat(12)6
Avg Revenue beat(12)-1.02%
Revenue beat(16)10
Avg Revenue beat(16)1.01%
PT rev (1m)4.62%
PT rev (3m)8.63%
EPS NQ rev (1m)1.91%
EPS NQ rev (3m)8.06%
EPS NY rev (1m)0.69%
EPS NY rev (3m)6.74%
Revenue NQ rev (1m)2.59%
Revenue NQ rev (3m)6.86%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)6.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 26.96 | ||
| P/S | 4.76 | ||
| P/FCF | 42.17 | ||
| P/OCF | 35.01 | ||
| P/B | 4.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.18 |
EPS(TTM)3.03
EY2.86%
EPS(NY)3.93
Fwd EY3.71%
FCF(TTM)2.51
FCFY2.37%
OCF(TTM)3.03
OCFY2.86%
SpS22.23
BVpS22.55
TBVpS-6.01
PEG (NY)1.84
PEG (5Y)3.7
Graham Number39.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.9% | ||
| ROE | 16.59% | ||
| ROCE | 9.99% | ||
| ROIC | 7.89% | ||
| ROICexc | 8.07% | ||
| ROICexgc | 42.69% | ||
| OM | 16.17% | ||
| PM (TTM) | 16.83% | ||
| GM | 38.55% | ||
| FCFM | 11.3% |
ROA(3y)7.43%
ROA(5y)5.41%
ROE(3y)14.31%
ROE(5y)10.38%
ROIC(3y)7.52%
ROIC(5y)7.06%
ROICexc(3y)7.87%
ROICexc(5y)7.32%
ROICexgc(3y)34.72%
ROICexgc(5y)36.99%
ROCE(3y)9.52%
ROCE(5y)8.93%
ROICexgc growth 3Y-20.81%
ROICexgc growth 5Y-13.31%
ROICexc growth 3Y1.13%
ROICexc growth 5Y1.61%
OM growth 3Y7.21%
OM growth 5Y2.51%
PM growth 3Y-0.14%
PM growth 5Y1.78%
GM growth 3Y1.68%
GM growth 5Y0.47%
F-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 2.05 | ||
| Cap/Depr | 42.95% | ||
| Cap/Sales | 2.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.17% | ||
| Profit Quality | 67.15% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | N/A |
F-Score6
WACC9.06%
ROIC/WACC0.87
Cap/Depr(3y)47.03%
Cap/Depr(5y)43.3%
Cap/Sales(3y)2.23%
Cap/Sales(5y)2.06%
Profit Quality(3y)113.11%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1%
EPS 3Y12.76%
EPS 5Y9.44%
EPS Q2Q%44.44%
EPS Next Y19.04%
EPS Next 2Y18.24%
EPS Next 3Y15.1%
EPS Next 5Y11.48%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%34.78%
Revenue Next Year21.35%
Revenue Next 2Y16.94%
Revenue Next 3Y13.65%
Revenue Next 5Y9.03%
EBIT growth 1Y-6.54%
EBIT growth 3Y14.59%
EBIT growth 5Y9.07%
EBIT Next Year40.33%
EBIT Next 3Y18.51%
EBIT Next 5Y13.77%
FCF growth 1Y-4.29%
FCF growth 3Y19.46%
FCF growth 5Y13.85%
OCF growth 1Y0.1%
OCF growth 3Y19.88%
OCF growth 5Y13.84%
NVENT ELECTRIC PLC / NVT FAQ
Can you provide the ChartMill fundamental rating for NVENT ELECTRIC PLC?
ChartMill assigns a fundamental rating of 6 / 10 to NVT.
What is the valuation status of NVENT ELECTRIC PLC (NVT) stock?
ChartMill assigns a valuation rating of 4 / 10 to NVENT ELECTRIC PLC (NVT). This can be considered as Fairly Valued.
Can you provide the profitability details for NVENT ELECTRIC PLC?
NVENT ELECTRIC PLC (NVT) has a profitability rating of 8 / 10.
How financially healthy is NVENT ELECTRIC PLC?
The financial health rating of NVENT ELECTRIC PLC (NVT) is 4 / 10.
Can you provide the dividend sustainability for NVT stock?
The dividend rating of NVENT ELECTRIC PLC (NVT) is 5 / 10 and the dividend payout ratio is 21.56%.