NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
USA - NYSE:NVT - IE00BDVJJQ56 - Common Stock
98 USD
+0.2 (+0.2%)
97.93 USD
-0.07 (-0.07%)
Taking everything into account, NVT scores 6 out of 10 in our fundamental rating. NVT was compared to 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.
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
NVT's Return On Assets of 8.69% is amongst the best of the industry. NVT outperforms 90.32% of its industry peers.
The Return On Equity of NVT (16.65%) is better than 90.32% of its industry peers.
With a decent Return On Invested Capital value of 7.47%, NVT is doing good in the industry, outperforming 77.42% 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 10.14%.
| 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
Looking at the Profit Margin, with a value of 17.72%, NVT belongs to the top of the industry, outperforming 95.70% 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 16.74%, NVT belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
NVT's Operating Margin has improved in the last couple of years.
NVT has a better Gross Margin (39.20%) than 86.02% of its industry peers.
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.
Compared to 1 year ago, NVT has about the same amount of shares outstanding.
Compared to 5 years ago, NVT has less shares outstanding
NVT has a worse debt/assets ratio than last year.
2.2 Solvency
NVT has an Altman-Z score of 4.11. This indicates that NVT is financially healthy and has little risk of bankruptcy at the moment.
NVT has a better Altman-Z score (4.11) than 73.12% 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.
The Debt to FCF ratio of NVT (4.55) is better than 76.34% of its industry peers.
NVT has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NVT (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | 4.11 |
ROIC/WACC0.85
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.67 indicates that NVT should not have too much problems paying its short term obligations.
NVT has a Current ratio (1.67) which is in line with 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 56.99% 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.
The Earnings Per Share has been growing by 9.44% on average over the past years. This is quite good.
The Revenue has decreased by -4.84% in the past 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)-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
Based on estimates for the next years, NVT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.48% on average per year.
Based on estimates for the next years, NVT will show a quite strong growth in Revenue. The Revenue will grow by 9.02% on average per year.
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.
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
With a Price/Earnings ratio of 35.64, NVT can be considered very expensive at the moment.
72.04% of the companies in the same industry are more expensive than NVT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NVT to the average of the S&P500 Index (27.90), we can say NVT is valued slightly more expensively.
NVT is valuated quite expensively with a Price/Forward Earnings ratio of 25.82.
74.19% of the companies in the same industry are more expensive than NVT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.36, NVT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.64 | ||
| Fwd PE | 25.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVT indicates a somewhat cheap valuation: NVT is cheaper than 75.27% of the companies listed in the same industry.
74.19% 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 | 40.61 | ||
| EV/EBITDA | 24.37 |
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.
A more expensive valuation may be justified as NVT's earnings are expected to grow with 13.80% in the coming years.
PEG (NY)1.96
PEG (5Y)3.78
EPS Next 2Y16.23%
EPS Next 3Y13.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, NVT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.13, NVT pays a better dividend. On top of this NVT pays more dividend than 84.95% of the companies listed in the same industry.
With a Dividend Yield of 0.80, NVT pays less dividend than the S&P500 average, which is at 2.44.
| 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
NVT pays out 21.93% 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.
DP21.93%
EPS Next 2Y16.23%
EPS Next 3Y13.8%
98
+0.2 (+0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change0%
Ins Owners0.79%
Ins Owner Change13.05%
Market Cap15.77B
Analysts83.53
Price Target101.28 (3.35%)
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)3.38%
PT rev (3m)35.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.75%
EPS NY rev (1m)0.66%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.89%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)5.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.64 | ||
| Fwd PE | 25.82 | ||
| P/S | 4.77 | ||
| P/FCF | 40.61 | ||
| P/OCF | 33.89 | ||
| P/B | 4.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.37 |
EPS(TTM)2.75
EY2.81%
EPS(NY)3.8
Fwd EY3.87%
FCF(TTM)2.41
FCFY2.46%
OCF(TTM)2.89
OCFY2.95%
SpS20.54
BVpS21.86
TBVpS-6.93
PEG (NY)1.96
PEG (5Y)3.78
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 | 4.11 |
F-Score4
WACC8.84%
ROIC/WACC0.85
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%