NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
NYSE:NVT - New York Stock Exchange, Inc. - IE00BDVJJQ56 - Common Stock - Currency: USD
Overall NVT gets a fundamental rating of 6 out of 10. We evaluated NVT against 93 industry peers in the Electrical Equipment industry. While NVT has a great profitability rating, 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 has a better Return On Assets (8.33%) than 89.13% of its industry peers.
The Return On Equity of NVT (17.54%) is better than 91.30% of its industry peers.
With an excellent Return On Invested Capital value of 8.95%, NVT belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NVT is in line with the industry average of 10.19%.
The 3 year average ROIC (8.69%) for NVT is below the current ROIC(8.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 17.54% | ||
| ROIC | 8.95% |
ROA(3y)7.73%
ROA(5y)5.38%
ROE(3y)14.54%
ROE(5y)10.05%
ROIC(3y)8.69%
ROIC(5y)7.85%
1.3 Margins
With an excellent Profit Margin value of 16.95%, NVT belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
NVT's Profit Margin has improved in the last couple of years.
NVT has a better Operating Margin (19.13%) than 96.74% of its industry peers.
In the last couple of years the Operating Margin of NVT has grown nicely.
The Gross Margin of NVT (40.87%) is better than 91.30% of its industry peers.
NVT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.13% | ||
| PM (TTM) | 16.95% | ||
| GM | 40.87% |
OM growth 3Y10.73%
OM growth 5Y2.73%
PM growth 3YN/A
PM growth 5Y10.76%
GM growth 3Y3.13%
GM growth 5Y0.77%
2. Health
2.1 Basic Checks
NVT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for NVT remains at a similar level compared to 1 year ago.
NVT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NVT has a worse debt to assets ratio.
2.2 Solvency
NVT has an Altman-Z score of 2.85. This is not the best score and indicates that NVT is in the grey zone with still only limited risk for bankruptcy at the moment.
NVT has a better Altman-Z score (2.85) than 70.65% of its industry peers.
NVT has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as NVT would need 3.86 years to pay back of all of its debts.
NVT has a Debt to FCF ratio of 3.86. This is in the better half of the industry: NVT outperforms 72.83% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that NVT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, NVT is not doing good in the industry: 61.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.03
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.83 indicates that NVT should not have too much problems paying its short term obligations.
The Current ratio of NVT (1.83) is comparable to the rest of the industry.
A Quick Ratio of 1.36 indicates that NVT should not have too much problems paying its short term obligations.
NVT has a Quick ratio of 1.36. This is comparable to the rest of the industry: NVT outperforms 53.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.04% over the past year.
The Earnings Per Share has been growing by 21.37% on average over the past years. This is a very strong growth
NVT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.08%.
The Revenue has been growing by 8.07% on average over the past years. This is quite good.
EPS 1Y (TTM)2.04%
EPS 3Y26.55%
EPS 5Y21.37%
EPS Q2Q%-25%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y17.76%
Revenue growth 5Y8.07%
Sales Q2Q%-8.94%
3.2 Future
The Earnings Per Share is expected to grow by 2.99% on average over the next years.
Based on estimates for the next years, NVT will show a small growth in Revenue. The Revenue will grow by 3.38% on average per year.
EPS Next Y-15.67%
EPS Next 2Y-0.54%
EPS Next 3Y3.31%
EPS Next 5Y2.99%
Revenue Next Year-4.42%
Revenue Next 2Y1.11%
Revenue Next 3Y2.83%
Revenue Next 5Y3.38%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NVT is valuated rather expensively with a Price/Earnings ratio of 21.31.
81.52% of the companies in the same industry are more expensive than NVT, based on the Price/Earnings ratio.
NVT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.47.
The Price/Forward Earnings ratio is 21.12, which indicates a rather expensive current valuation of NVT.
Based on the Price/Forward Earnings ratio, NVT is valued cheaper than 80.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, NVT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.31 | ||
| Fwd PE | 21.12 |
4.2 Price Multiples
77.17% 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 cheaply inside the industry as 84.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 15.7 |
4.3 Compensation for Growth
The excellent profitability rating of NVT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-0.54%
EPS Next 3Y3.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, NVT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.57, NVT pays a better dividend. On top of this NVT pays more dividend than 89.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, NVT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
On average, the dividend of NVT grows each year by 14.84%, which is quite nice.
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)14.84%
Div Incr Years1
Div Non Decr Years6
5.3 Sustainability
NVT pays out 21.61% of its income as dividend. This is a sustainable payout ratio.
The dividend of NVT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.61%
EPS Next 2Y-0.54%
EPS Next 3Y3.31%
NVENT ELECTRIC PLC
NYSE:NVT (2/5/2025, 1:44:09 PM)
63.94
+1.04 (+1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.47%
Inst Owner Change-0.14%
Ins Owners0.61%
Ins Owner Change-0.93%
Market Cap10.54B
Analysts80
Price Target85.15 (33.17%)
Short Float %1.72%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.71
Dividend Growth(5Y)14.84%
DP21.61%
Div Incr Years1
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.34%
Min EPS beat(2)-19.1%
Max EPS beat(2)-1.59%
EPS beat(4)2
Avg EPS beat(4)-3.08%
Min EPS beat(4)-19.1%
Max EPS beat(4)4.77%
EPS beat(8)5
Avg EPS beat(8)2.92%
EPS beat(12)9
Avg EPS beat(12)4.45%
EPS beat(16)13
Avg EPS beat(16)6.78%
Revenue beat(2)0
Avg Revenue beat(2)-7.88%
Min Revenue beat(2)-13.41%
Max Revenue beat(2)-2.35%
Revenue beat(4)1
Avg Revenue beat(4)-4.31%
Min Revenue beat(4)-13.41%
Max Revenue beat(4)0.18%
Revenue beat(8)3
Avg Revenue beat(8)-2.36%
Revenue beat(12)7
Avg Revenue beat(12)0.78%
Revenue beat(16)10
Avg Revenue beat(16)2.03%
PT rev (1m)-3.58%
PT rev (3m)-0.72%
EPS NQ rev (1m)-3.73%
EPS NQ rev (3m)-27.92%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-21.66%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-14.93%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-13.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.31 | ||
| Fwd PE | 21.12 | ||
| P/S | 3.1 | ||
| P/FCF | 18 | ||
| P/OCF | 16.09 | ||
| P/B | 3.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.7 |
EPS(TTM)3
EY4.69%
EPS(NY)3.03
Fwd EY4.73%
FCF(TTM)3.55
FCFY5.55%
OCF(TTM)3.97
OCFY6.22%
SpS20.62
BVpS19.92
TBVpS-3.44
PEG (NY)N/A
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 17.54% | ||
| ROCE | 10.58% | ||
| ROIC | 8.95% | ||
| ROICexc | 9.16% | ||
| ROICexgc | 25.53% | ||
| OM | 19.13% | ||
| PM (TTM) | 16.95% | ||
| GM | 40.87% | ||
| FCFM | 17.23% |
ROA(3y)7.73%
ROA(5y)5.38%
ROE(3y)14.54%
ROE(5y)10.05%
ROIC(3y)8.69%
ROIC(5y)7.85%
ROICexc(3y)9.06%
ROICexc(5y)8.14%
ROICexgc(3y)48.3%
ROICexgc(5y)46.42%
ROCE(3y)10.27%
ROCE(5y)9.28%
ROICexcg growth 3Y4.23%
ROICexcg growth 5Y-5.19%
ROICexc growth 3Y17.06%
ROICexc growth 5Y4.82%
OM growth 3Y10.73%
OM growth 5Y2.73%
PM growth 3YN/A
PM growth 5Y10.76%
GM growth 3Y3.13%
GM growth 5Y0.77%
F-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 47.9% | ||
| Cap/Sales | 2.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.35% | ||
| Profit Quality | 101.63% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.85 |
F-Score6
WACC8.69%
ROIC/WACC1.03
Cap/Depr(3y)42.28%
Cap/Depr(5y)41.18%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.82%
Profit Quality(3y)96.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.04%
EPS 3Y26.55%
EPS 5Y21.37%
EPS Q2Q%-25%
EPS Next Y-15.67%
EPS Next 2Y-0.54%
EPS Next 3Y3.31%
EPS Next 5Y2.99%
Revenue 1Y (TTM)8.08%
Revenue growth 3Y17.76%
Revenue growth 5Y8.07%
Sales Q2Q%-8.94%
Revenue Next Year-4.42%
Revenue Next 2Y1.11%
Revenue Next 3Y2.83%
Revenue Next 5Y3.38%
EBIT growth 1Y14.94%
EBIT growth 3Y30.39%
EBIT growth 5Y11.02%
EBIT Next Year9.43%
EBIT Next 3Y8.13%
EBIT Next 5Y6.49%
FCF growth 1Y116.9%
FCF growth 3Y14.56%
FCF growth 5Y8.5%
OCF growth 1Y107.94%
OCF growth 3Y15.36%
OCF growth 5Y8.98%