NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVT - IE00BDVJJQ56 - Common Stock
108.27 USD
+3.3 (+3.14%)
108.76 USD
+0.49 (+0.45%)
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 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.
NVT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NVT has a better Return On Assets (8.90%) than 87.78% of its industry peers.
NVT has a better Return On Equity (16.60%) than 87.78% of its industry peers.
With a decent Return On Invested Capital value of 7.92%, NVT is doing good in the industry, outperforming 76.67% 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 10.41%.
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
With an excellent Profit Margin value of 16.83%, NVT belongs to the best of the industry, outperforming 92.22% of the companies in the same industry.
In the last couple of years the Profit Margin of NVT has grown nicely.
With an excellent Operating Margin value of 16.24%, NVT belongs to the best 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.
NVT has a Gross Margin of 38.55%. This is amongst the best in the industry. NVT outperforms 87.78% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NVT is destroying 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.
The debt/assets ratio for NVT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.58 indicates that NVT is not in any danger for bankruptcy at the moment.
NVT's Altman-Z score of 4.58 is fine compared to the rest of the industry. NVT outperforms 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.
Looking at the Debt to FCF ratio, with a value of 3.94, NVT is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that NVT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, NVT is in line with its industry, outperforming 47.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 4.58 |
ROIC/WACC0.86
WACC9.25%
2.3 Liquidity
A Current Ratio of 1.57 indicates that NVT should not have too much problems paying its short term obligations.
NVT has a Current ratio (1.57) which is in line with its industry peers.
A Quick Ratio of 1.11 indicates that NVT should not have too much problems paying its short term obligations.
NVT's Quick ratio of 1.11 is in line compared to the rest of the industry. NVT outperforms 53.33% 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.
Measured over the past years, NVT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.44% on average per year.
Looking at the last year, NVT shows a small growth in Revenue. The Revenue has grown by 5.31% in the last year.
Measured over the past years, NVT shows a small growth in Revenue. The Revenue has been growing by 6.40% on average per year.
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
NVT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.53% yearly.
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 35.73, which means the current valuation is very expensive for NVT.
74.44% of the companies in the same industry are more expensive than NVT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.41, NVT is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 27.56, the valuation of NVT can be described as expensive.
Based on the Price/Forward Earnings ratio, NVT is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NVT to the average of the S&P500 Index (35.40), we can say NVT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.73 | ||
| Fwd PE | 27.56 |
4.2 Price Multiples
NVT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NVT is cheaper than 72.22% 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 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.22 | ||
| EV/EBITDA | 24.49 |
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)1.88
PEG (5Y)3.79
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.
Compared to an average industry Dividend Yield of 3.32, NVT pays a better dividend. On top of this NVT pays more dividend than 85.56% of the companies listed 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
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 2Y18.24%
EPS Next 3Y15.1%
108.27
+3.3 (+3.14%)
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 Cap17.47B
Revenue(TTM)3.58B
Net Income(TTM)602.40M
Analysts83.53
Price Target121.34 (12.07%)
Short Float %1.93%
Short Ratio1.4
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 | 35.73 | ||
| Fwd PE | 27.56 | ||
| P/S | 4.88 | ||
| P/FCF | 43.22 | ||
| P/OCF | 35.89 | ||
| P/B | 4.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.49 |
EPS(TTM)3.03
EY2.8%
EPS(NY)3.93
Fwd EY3.63%
FCF(TTM)2.5
FCFY2.31%
OCF(TTM)3.02
OCFY2.79%
SpS22.18
BVpS22.49
TBVpS-5.99
PEG (NY)1.88
PEG (5Y)3.79
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 | 4.58 |
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%.