NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVT - IE00BDVJJQ56 - Common Stock
107.27 USD
+0.74 (+0.69%)
107.27 USD
0 (0%)
Overall NVT gets a fundamental rating of 6 out of 10. We evaluated NVT 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 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.
NVT had positive earnings in 4 of the past 5 years.
NVT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.90%, NVT belongs to the best of the industry, outperforming 87.78% of the companies in the same industry.
The Return On Equity of NVT (16.60%) is better than 87.78% of its industry peers.
The Return On Invested Capital of NVT (7.92%) is better than 76.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NVT is below the industry average of 10.41%.
The 3 year average ROIC (7.52%) for NVT is below the current ROIC(7.92%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 16.83%, NVT belongs to the top of the industry, outperforming 92.22% of the companies in the same industry.
NVT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.24%, NVT belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NVT has grown nicely.
Looking at the Gross Margin, with a value of 38.55%, NVT belongs to the top of the industry, outperforming 87.78% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NVT is destroying value.
The number of shares outstanding for NVT remains at a similar level compared to 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
NVT has an Altman-Z score of 4.55. This indicates that NVT is financially healthy and has little risk of bankruptcy at the moment.
NVT has a better Altman-Z score (4.55) than 75.56% 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 better Debt to FCF ratio (3.94) than 76.67% 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.
NVT has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: NVT outperforms 47.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 4.55 |
ROIC/WACC0.86
WACC9.25%
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.
NVT has a Current ratio (1.57) which is in line with its industry peers.
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.
With a Quick ratio value of 1.11, NVT perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
| 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.
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 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 Y19.04%
EPS Next 2Y18.24%
EPS Next 3Y15.1%
EPS Next 5Y12.53%
Revenue Next Year21.35%
Revenue Next 2Y16.94%
Revenue Next 3Y13.65%
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
The Price/Earnings ratio is 35.40, which means the current valuation is very expensive for NVT.
Based on the Price/Earnings ratio, NVT is valued a bit cheaper than the industry average as 74.44% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NVT to the average of the S&P500 Index (26.31), we can say NVT is valued slightly more expensively.
With a Price/Forward Earnings ratio of 27.31, NVT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVT indicates a somewhat cheap valuation: NVT is cheaper than 70.00% of the companies listed in the same industry.
NVT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.4 | ||
| Fwd PE | 27.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVT is valued a bit cheaper than 72.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVT indicates a somewhat cheap valuation: NVT is cheaper than 72.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.82 | ||
| EV/EBITDA | 24.29 |
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.
A more expensive valuation may be justified as NVT's earnings are expected to grow with 15.10% in the coming years.
PEG (NY)1.86
PEG (5Y)3.75
EPS Next 2Y18.24%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, 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 3.32. NVT pays more dividend than 85.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, NVT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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.
NVT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)1.99%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
21.58% of the earnings are spent on dividend by NVT. This is a low number and sustainable payout ratio.
NVT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.58%
EPS Next 2Y18.24%
EPS Next 3Y15.1%
107.27
+0.74 (+0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change-4.52%
Ins Owners0.79%
Ins Owner Change0.26%
Market Cap17.31B
Revenue(TTM)3.58B
Net Income(TTM)602.40M
Analysts83.53
Price Target121.34 (13.12%)
Short Float %1.68%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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)19.81%
PT rev (3m)23.86%
EPS NQ rev (1m)1.42%
EPS NQ rev (3m)3.38%
EPS NY rev (1m)0.5%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)2.22%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.4 | ||
| Fwd PE | 27.31 | ||
| P/S | 4.84 | ||
| P/FCF | 42.82 | ||
| P/OCF | 35.56 | ||
| P/B | 4.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.29 |
EPS(TTM)3.03
EY2.82%
EPS(NY)3.93
Fwd EY3.66%
FCF(TTM)2.5
FCFY2.34%
OCF(TTM)3.02
OCFY2.81%
SpS22.18
BVpS22.49
TBVpS-5.99
PEG (NY)1.86
PEG (5Y)3.75
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 | 4.55 |
F-Score6
WACC9.25%
ROIC/WACC0.86
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 5Y12.53%
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 5Y9.93%
EBIT growth 1Y-6.12%
EBIT growth 3Y14.59%
EBIT growth 5Y9.07%
EBIT Next Year40.33%
EBIT Next 3Y18.51%
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%.