NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVT - IE00BDVJJQ56 - Common Stock
101.71 USD
-7.44 (-6.82%)
101.71 USD
0 (0%)
NVT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 90 industry peers in the Electrical Equipment industry. NVT scores excellent on profitability, but there are some minor concerns on its financial health. NVT has a correct valuation and a medium 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.
NVT had a positive operating cash flow in each of the past 5 years.
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 has a Return On Equity of 16.60%. This is amongst the best in the industry. NVT outperforms 87.91% of its industry peers.
With a decent Return On Invested Capital value of 7.92%, NVT is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NVT is below the industry average of 9.86%.
The last Return On Invested Capital (7.92%) for NVT is above the 3 year average (7.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.9% | ||
| ROE | 16.6% | ||
| ROIC | 7.92% |
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.
In the last couple of years the Profit Margin of NVT has grown nicely.
Looking at the Operating Margin, with a value of 16.24%, NVT belongs to the top of the industry, outperforming 90.11% of the companies in the same industry.
In the last couple of years the Operating Margin of NVT has grown nicely.
NVT has a better Gross Margin (38.55%) than 86.81% of its industry peers.
NVT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.24% | ||
| 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.
NVT has less shares outstanding than it did 5 years ago.
NVT has a worse debt/assets ratio than last year.
2.2 Solvency
NVT has an Altman-Z score of 4.38. This indicates that NVT is financially healthy and has little risk of bankruptcy at the moment.
NVT has a Altman-Z score of 4.38. This is in the better half of the industry: NVT outperforms 72.53% of its industry peers.
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 has a Debt to FCF ratio of 3.94. This is in the better half of the industry: NVT outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that NVT is not too dependend on debt financing.
NVT's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. NVT outperforms 49.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 4.38 |
ROIC/WACC0.82
WACC9.63%
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.
With a Current ratio value of 1.57, NVT perfoms like the industry average, outperforming 43.96% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that NVT should not have too much problems paying its short term obligations.
NVT has a Quick ratio (1.11) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
NVT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.00%.
The Earnings Per Share has been growing by 9.44% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.31% in the past year.
The Revenue has been growing slightly by 6.40% on average over the past years.
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 12.53% on average per year.
The Revenue is expected to grow by 9.93% on average over the next years. This is quite good.
EPS Next Y19.6%
EPS Next 2Y19.78%
EPS Next 3Y17.68%
EPS Next 5Y12.53%
Revenue Next Year22.55%
Revenue Next 2Y18.51%
Revenue Next 3Y15.28%
Revenue Next 5Y9.93%
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
Based on the Price/Earnings ratio of 33.57, the valuation of NVT can be described as expensive.
NVT's Price/Earnings ratio is a bit cheaper when compared to the industry. NVT is cheaper than 73.63% of the companies in the same industry.
NVT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.56.
Based on the Price/Forward Earnings ratio of 25.23, the valuation of NVT can be described as expensive.
Based on the Price/Forward Earnings ratio, NVT is valued a bit cheaper than 72.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NVT to the average of the S&P500 Index (23.79), we can say NVT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.57 | ||
| Fwd PE | 25.23 |
4.2 Price Multiples
72.53% of the companies in the same industry are more expensive than NVT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NVT is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.6 | ||
| EV/EBITDA | 23.13 |
4.3 Compensation for Growth
NVT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 17.68% in the coming years.
PEG (NY)1.71
PEG (5Y)3.56
EPS Next 2Y19.78%
EPS Next 3Y17.68%
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 0.67. NVT pays more dividend than 85.71% of the companies in the same industry.
With a Dividend Yield of 0.73, NVT pays less dividend than the S&P500 average, which is at 1.87.
| 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 21.58% of its income as dividend. This is a sustainable payout ratio.
The dividend of NVT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.58%
EPS Next 2Y19.78%
EPS Next 3Y17.68%
101.71
-7.44 (-6.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.55%
Inst Owner Change-4.51%
Ins Owners0.8%
Ins Owner Change0.26%
Market Cap16.41B
Revenue(TTM)3.58B
Net Income(TTM)602.40M
Analysts83.33
Price Target122.05 (20%)
Short Float %1.93%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend0.77
Dividend Growth(5Y)1.99%
DP21.58%
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)15.19%
PT rev (3m)24.26%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)1.98%
EPS NY rev (1m)0.47%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.57 | ||
| Fwd PE | 25.23 | ||
| P/S | 4.59 | ||
| P/FCF | 40.6 | ||
| P/OCF | 33.71 | ||
| P/B | 4.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.13 |
EPS(TTM)3.03
EY2.98%
EPS(NY)4.03
Fwd EY3.96%
FCF(TTM)2.5
FCFY2.46%
OCF(TTM)3.02
OCFY2.97%
SpS22.18
BVpS22.49
TBVpS-5.99
PEG (NY)1.71
PEG (5Y)3.56
Graham Number39.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.9% | ||
| ROE | 16.6% | ||
| ROCE | 10.03% | ||
| ROIC | 7.92% | ||
| ROICexc | 8.1% | ||
| ROICexgc | 42.88% | ||
| OM | 16.24% | ||
| PM (TTM) | 16.83% | ||
| GM | 38.55% | ||
| FCFM | 11.29% |
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 | 2.04 | ||
| Cap/Depr | 43.02% | ||
| Cap/Sales | 2.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.97% | ||
| Profit Quality | 67.1% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.38 |
F-Score6
WACC9.63%
ROIC/WACC0.82
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 Y19.6%
EPS Next 2Y19.78%
EPS Next 3Y17.68%
EPS Next 5Y12.53%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%34.78%
Revenue Next Year22.55%
Revenue Next 2Y18.51%
Revenue Next 3Y15.28%
Revenue Next 5Y9.93%
EBIT growth 1Y-6.12%
EBIT growth 3Y14.59%
EBIT growth 5Y9.07%
EBIT Next Year43.35%
EBIT Next 3Y22.89%
EBIT Next 5Y14.84%
FCF growth 1Y-4.31%
FCF growth 3Y19.46%
FCF growth 5Y13.85%
OCF growth 1Y0.08%
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 5 / 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 21.58%.