NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
USA - NYSE:NVT - IE00BDVJJQ56 - Common Stock
99.33 USD
-1.21 (-1.2%)
99.33 USD
0 (0%)
Overall NVT gets a fundamental rating of 6 out of 10. We evaluated NVT against 92 industry peers in the Electrical Equipment industry. NVT has an excellent profitability rating, 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
In the past year NVT was profitable.
NVT had a positive operating cash flow in the past year.
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 (8.69%) than 90.22% of its industry peers.
NVT's Return On Equity of 16.65% is amongst the best of the industry. NVT outperforms 90.22% of its industry peers.
NVT has a Return On Invested Capital of 7.47%. This is in the better half of the industry: NVT outperforms 77.17% of its industry peers.
NVT had an Average Return On Invested Capital over the past 3 years of 7.52%. This is below the industry average of 10.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 16.65% | ||
| ROIC | 7.47% |
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 Profit Margin of 17.72%. This is amongst the best in the industry. NVT outperforms 95.65% of its industry peers.
In the last couple of years the Profit Margin of NVT has grown nicely.
The Operating Margin of NVT (16.74%) is better than 90.22% 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 39.20%, NVT belongs to the top of the industry, outperforming 86.96% 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 | 16.74% | ||
| PM (TTM) | 17.72% | ||
| GM | 39.2% |
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
NVT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
An Altman-Z score of 4.16 indicates that NVT is not in any danger for bankruptcy at the moment.
NVT has a Altman-Z score of 4.16. This is in the better half of the industry: NVT outperforms 75.00% of its industry peers.
The Debt to FCF ratio of NVT is 4.55, which is a neutral value as it means it would take NVT, 4.55 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.55, NVT is doing good in the industry, outperforming 76.09% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that NVT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, NVT is in line with its industry, outperforming 47.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 4.16 |
ROIC/WACC0.83
WACC8.99%
2.3 Liquidity
A Current Ratio of 1.67 indicates that NVT should not have too much problems paying its short term obligations.
NVT's Current ratio of 1.67 is in line compared to the rest of the industry. NVT outperforms 48.91% of its industry peers.
A Quick Ratio of 1.20 indicates that NVT should not have too much problems paying its short term obligations.
NVT has a Quick ratio of 1.20. This is comparable to the rest of the industry: NVT outperforms 56.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for NVT have decreased strongly by -14.33% in the last 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.
The Revenue has decreased by -4.84% in the past year.
The Revenue has been growing slightly by 6.40% on average over the past years.
EPS 1Y (TTM)-14.33%
EPS 3Y12.76%
EPS 5Y9.44%
EPS Q2Q%4.88%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%9.41%
3.2 Future
The Earnings Per Share is expected to grow by 11.48% on average over the next years. This is quite good.
NVT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.02% yearly.
EPS Next Y18.22%
EPS Next 2Y16.23%
EPS Next 3Y13.8%
EPS Next 5Y11.48%
Revenue Next Year20.18%
Revenue Next 2Y15.37%
Revenue Next 3Y12.23%
Revenue Next 5Y9.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 36.12, NVT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NVT is valued a bit cheaper than 71.74% 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 27.42.
NVT is valuated quite expensively with a Price/Forward Earnings ratio of 26.17.
NVT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NVT is cheaper than 72.83% of the companies in the same industry.
NVT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.12 | ||
| Fwd PE | 26.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVT is valued a bit cheaper than 75.00% 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 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.16 | ||
| EV/EBITDA | 24.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NVT does not grow enough to justify the current Price/Earnings ratio.
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 13.80% in the coming years.
PEG (NY)1.98
PEG (5Y)3.83
EPS Next 2Y16.23%
EPS Next 3Y13.8%
5. Dividend
5.1 Amount
NVT has a yearly dividend return of 0.80%, which is pretty low.
NVT's Dividend Yield is rather good when compared to the industry average which is at 3.09. NVT pays more dividend than 84.78% of the companies in the same industry.
With a Dividend Yield of 0.80, NVT pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
21.93% 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.
DP21.93%
EPS Next 2Y16.23%
EPS Next 3Y13.8%
99.33
-1.21 (-1.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change-0.25%
Ins Owners0.79%
Ins Owner Change-1.87%
Market Cap15.99B
Analysts83.53
Price Target101.28 (1.96%)
Short Float %2.51%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend0.77
Dividend Growth(5Y)1.99%
DP21.93%
Div Incr Years1
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.79%
Min EPS beat(2)-0.29%
Max EPS beat(2)7.88%
EPS beat(4)1
Avg EPS beat(4)-3.25%
Min EPS beat(4)-19.1%
Max EPS beat(4)7.88%
EPS beat(8)4
Avg EPS beat(8)0.87%
EPS beat(12)7
Avg EPS beat(12)3.29%
EPS beat(16)11
Avg EPS beat(16)4.26%
Revenue beat(2)2
Avg Revenue beat(2)3.06%
Min Revenue beat(2)1.27%
Max Revenue beat(2)4.85%
Revenue beat(4)2
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-13.41%
Max Revenue beat(4)4.85%
Revenue beat(8)3
Avg Revenue beat(8)-2.22%
Revenue beat(12)6
Avg Revenue beat(12)-0.96%
Revenue beat(16)10
Avg Revenue beat(16)1.12%
PT rev (1m)3.11%
PT rev (3m)26.33%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)4.56%
EPS NY rev (1m)0.66%
EPS NY rev (3m)6.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.81%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)5.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.12 | ||
| Fwd PE | 26.17 | ||
| P/S | 4.83 | ||
| P/FCF | 41.16 | ||
| P/OCF | 34.35 | ||
| P/B | 4.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.71 |
EPS(TTM)2.75
EY2.77%
EPS(NY)3.8
Fwd EY3.82%
FCF(TTM)2.41
FCFY2.43%
OCF(TTM)2.89
OCFY2.91%
SpS20.54
BVpS21.86
TBVpS-6.93
PEG (NY)1.98
PEG (5Y)3.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 16.65% | ||
| ROCE | 9.46% | ||
| ROIC | 7.47% | ||
| ROICexc | 7.64% | ||
| ROICexgc | 40.02% | ||
| OM | 16.74% | ||
| PM (TTM) | 17.72% | ||
| GM | 39.2% | ||
| FCFM | 11.75% |
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-Score4
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.55 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 48.22% | ||
| Cap/Sales | 2.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.25% | ||
| Profit Quality | 66.29% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.16 |
F-Score4
WACC8.99%
ROIC/WACC0.83
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)-14.33%
EPS 3Y12.76%
EPS 5Y9.44%
EPS Q2Q%4.88%
EPS Next Y18.22%
EPS Next 2Y16.23%
EPS Next 3Y13.8%
EPS Next 5Y11.48%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%9.41%
Revenue Next Year20.18%
Revenue Next 2Y15.37%
Revenue Next 3Y12.23%
Revenue Next 5Y9.02%
EBIT growth 1Y-13.39%
EBIT growth 3Y14.59%
EBIT growth 5Y9.07%
EBIT Next Year40.33%
EBIT Next 3Y18.51%
EBIT Next 5Y13.77%
FCF growth 1Y-7.5%
FCF growth 3Y19.46%
FCF growth 5Y13.85%
OCF growth 1Y-2.49%
OCF growth 3Y19.88%
OCF growth 5Y13.84%