NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
NYSE:NVT - New York Stock Exchange, Inc. - IE00BDVJJQ56 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to NVT. NVT was compared to 93 industry peers in the Electrical Equipment industry. NVT gets an excellent profitability rating and is at the same time showing great financial health properties. NVT has a decent growth rate and is not valued too expensively. With these ratings, NVT could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year NVT was profitable.
NVT had a positive operating cash flow in the past year.
NVT had positive earnings in 4 of the past 5 years.
In the past 5 years NVT always reported a positive cash flow from operatings.
1.2 Ratios
NVT's Return On Assets of 8.73% is amongst the best of the industry. NVT outperforms 90.32% of its industry peers.
NVT's Return On Equity of 16.24% is amongst the best of the industry. NVT outperforms 89.25% of its industry peers.
NVT has a Return On Invested Capital of 7.66%. This is in the better half of the industry: NVT outperforms 78.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVT is below the industry average of 9.89%.
The last Return On Invested Capital (7.66%) for NVT is above the 3 year average (7.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.73% | ||
| ROE | 16.24% | ||
| ROIC | 7.66% |
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 18.22%, NVT belongs to the best of the industry, outperforming 97.85% of the companies in the same industry.
In the last couple of years the Profit Margin of NVT has grown nicely.
The Operating Margin of NVT (17.72%) is better than 93.55% of its industry peers.
NVT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 40.10%, NVT belongs to the top of the industry, outperforming 91.40% of the companies in the same industry.
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 | 17.72% | ||
| PM (TTM) | 18.22% | ||
| GM | 40.1% |
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.
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
An Altman-Z score of 3.71 indicates that NVT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.71, NVT is doing good in the industry, outperforming 69.89% of the companies in the same industry.
NVT has a debt to FCF ratio of 3.30. This is a good value and a sign of high solvency as NVT would need 3.30 years to pay back of all of its debts.
The Debt to FCF ratio of NVT (3.30) is better than 76.34% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that NVT is not too dependend on debt financing.
NVT has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: NVT outperforms 46.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 3.71 |
ROIC/WACC0.86
WACC8.91%
2.3 Liquidity
NVT has a Current Ratio of 2.87. This indicates that NVT is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.87, NVT is doing good in the industry, outperforming 73.12% of the companies in the same industry.
A Quick Ratio of 2.42 indicates that NVT has no problem at all paying its short term obligations.
The Quick ratio of NVT (2.42) is better than 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.42 |
3. Growth
3.1 Past
The earnings per share for NVT have decreased strongly by -14.24% in the last year.
NVT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.44% yearly.
NVT shows a decrease in Revenue. In the last year, the revenue decreased by -5.12%.
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)-14.24%
EPS 3Y12.76%
EPS 5Y9.44%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)-5.12%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%-7.47%
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 9.60% on average per year.
NVT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.42% yearly.
EPS Next Y11.52%
EPS Next 2Y11.66%
EPS Next 3Y10.21%
EPS Next 5Y9.6%
Revenue Next Year14.1%
Revenue Next 2Y11.67%
Revenue Next 3Y9.58%
Revenue Next 5Y8.42%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NVT is valuated quite expensively with a Price/Earnings ratio of 27.66.
75.27% 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 27.41. NVT is around the same levels.
NVT is valuated rather expensively with a Price/Forward Earnings ratio of 21.40.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVT indicates a somewhat cheap valuation: NVT is cheaper than 78.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, NVT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.66 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
78.49% of the companies in the same industry are more expensive than NVT, based on the Enterprise Value to EBITDA ratio.
82.80% 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 | 23.1 | ||
| EV/EBITDA | 17.71 |
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.
PEG (NY)2.4
PEG (5Y)2.93
EPS Next 2Y11.66%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
NVT has a Yearly Dividend Yield of 1.07%.
Compared to an average industry Dividend Yield of 4.27, NVT pays a better dividend. On top of this NVT pays more dividend than 86.02% of the companies listed in the same industry.
With a Dividend Yield of 1.07, NVT pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
21.84% of the earnings are spent on dividend by NVT. This is a low number and sustainable payout ratio.
The dividend of NVT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.84%
EPS Next 2Y11.66%
EPS Next 3Y10.21%
74.97
+0.1 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.49%
Inst Owner Change-0.57%
Ins Owners0.83%
Ins Owner Change35.7%
Market Cap12.34B
Analysts83.75
Price Target74.79 (-0.24%)
Short Float %4.9%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend0.77
Dividend Growth(5Y)1.99%
DP21.84%
Div Incr Years1
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.9%
Min EPS beat(2)-1.51%
Max EPS beat(2)-0.29%
EPS beat(4)0
Avg EPS beat(4)-5.62%
Min EPS beat(4)-19.1%
Max EPS beat(4)-0.29%
EPS beat(8)4
Avg EPS beat(8)1.31%
EPS beat(12)7
Avg EPS beat(12)3.06%
EPS beat(16)11
Avg EPS beat(16)5.28%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-3.13%
Max Revenue beat(2)1.27%
Revenue beat(4)1
Avg Revenue beat(4)-4.41%
Min Revenue beat(4)-13.41%
Max Revenue beat(4)1.27%
Revenue beat(8)2
Avg Revenue beat(8)-3.05%
Revenue beat(12)6
Avg Revenue beat(12)-0.94%
Revenue beat(16)10
Avg Revenue beat(16)1.53%
PT rev (1m)1.55%
PT rev (3m)-7.28%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)-0.38%
EPS NY rev (1m)0.84%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)9.33%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)9.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.66 | ||
| Fwd PE | 21.4 | ||
| P/S | 3.83 | ||
| P/FCF | 23.1 | ||
| P/OCF | 20.13 | ||
| P/B | 3.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.71 |
EPS(TTM)2.71
EY3.61%
EPS(NY)3.5
Fwd EY4.67%
FCF(TTM)3.25
FCFY4.33%
OCF(TTM)3.73
OCFY4.97%
SpS19.58
BVpS21.96
TBVpS-1.03
PEG (NY)2.4
PEG (5Y)2.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.73% | ||
| ROE | 16.24% | ||
| ROCE | 9.69% | ||
| ROIC | 7.66% | ||
| ROICexc | 9.91% | ||
| ROICexgc | 58.9% | ||
| OM | 17.72% | ||
| PM (TTM) | 18.22% | ||
| GM | 40.1% | ||
| FCFM | 16.57% |
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%
ROICexcg growth 3Y-20.81%
ROICexcg 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.3 | ||
| Debt/EBITDA | 2.43 | ||
| Cap/Depr | 53.23% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.22% | ||
| Profit Quality | 90.96% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.42 | ||
| Altman-Z | 3.71 |
F-Score6
WACC8.91%
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)-14.24%
EPS 3Y12.76%
EPS 5Y9.44%
EPS Q2Q%-12.99%
EPS Next Y11.52%
EPS Next 2Y11.66%
EPS Next 3Y10.21%
EPS Next 5Y9.6%
Revenue 1Y (TTM)-5.12%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%-7.47%
Revenue Next Year14.1%
Revenue Next 2Y11.67%
Revenue Next 3Y9.58%
Revenue Next 5Y8.42%
EBIT growth 1Y-11.01%
EBIT growth 3Y14.59%
EBIT growth 5Y9.07%
EBIT Next Year26.58%
EBIT Next 3Y13.98%
EBIT Next 5Y12.05%
FCF growth 1Y31.73%
FCF growth 3Y19.46%
FCF growth 5Y13.85%
OCF growth 1Y34.05%
OCF growth 3Y19.88%
OCF growth 5Y13.84%