NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
NYSE:NVT - New York Stock Exchange, Inc. - IE00BDVJJQ56 - Common Stock - Currency: USD
Taking everything into account, NVT scores 6 out of 10 in our fundamental rating. NVT was compared to 95 industry peers in the Electrical Equipment industry. NVT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NVT has a valuation in line with the averages, but it does not seem to be growing.
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's Return On Assets of 8.73% is amongst the best of the industry. NVT outperforms 88.42% of its industry peers.
NVT's Return On Equity of 16.24% is amongst the best of the industry. NVT outperforms 87.37% 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 77.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVT is below the industry average of 10.11%.
The 3 year average ROIC (7.52%) for NVT is below the current ROIC(7.66%), indicating increased profibility in the last year.
| 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
NVT has a better Profit Margin (18.22%) than 97.89% of its industry peers.
In the last couple of years the Profit Margin of NVT has grown nicely.
Looking at the Operating Margin, with a value of 17.72%, NVT belongs to the top of the industry, outperforming 93.68% of the companies in the same industry.
In the last couple of years the Operating Margin of NVT has grown nicely.
NVT's Gross Margin of 40.10% is amongst the best of the industry. NVT outperforms 90.53% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NVT is destroying value.
NVT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, NVT has less shares outstanding
NVT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.44 indicates that NVT is not in any danger for bankruptcy at the moment.
NVT's Altman-Z score of 3.44 is fine compared to the rest of the industry. NVT outperforms 73.68% of its industry peers.
The Debt to FCF ratio of NVT is 3.30, which is a good value as it means it would take NVT, 3.30 years of fcf income to pay off all of its debts.
NVT has a better Debt to FCF ratio (3.30) than 74.74% 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 (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.3 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.88
WACC8.67%
2.3 Liquidity
A Current Ratio of 2.87 indicates that NVT has no problem at all paying its short term obligations.
NVT's Current ratio of 2.87 is fine compared to the rest of the industry. NVT outperforms 72.63% of its industry peers.
NVT has a Quick Ratio of 2.42. This indicates that NVT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NVT (2.42) is better than 81.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.42 |
3. Growth
3.1 Past
NVT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.24%.
NVT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.44% yearly.
Looking at the last year, NVT shows a decrease in Revenue. The Revenue has decreased by -5.12% in the last year.
The Revenue has been growing slightly by 6.40% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.26% 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 5.51% on average per year.
EPS Next Y10.6%
EPS Next 2Y10.84%
EPS Next 3Y10.09%
EPS Next 5Y7.26%
Revenue Next Year13.3%
Revenue Next 2Y11.12%
Revenue Next 3Y9.62%
Revenue Next 5Y5.51%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.55, which indicates a rather expensive current valuation of NVT.
Compared to the rest of the industry, the Price/Earnings ratio of NVT indicates a somewhat cheap valuation: NVT is cheaper than 74.74% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NVT to the average of the S&P500 Index (26.20), we can say NVT is valued inline with the index average.
The Price/Forward Earnings ratio is 19.27, which indicates a rather expensive current valuation of NVT.
NVT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NVT is cheaper than 77.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NVT to the average of the S&P500 Index (22.13), we can say NVT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.55 | ||
| Fwd PE | 19.27 |
4.2 Price Multiples
NVT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NVT is cheaper than 77.89% of the companies in the same industry.
78.95% 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 | 20.5 | ||
| EV/EBITDA | 15.72 |
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.
NVT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.32
PEG (5Y)2.6
EPS Next 2Y10.84%
EPS Next 3Y10.09%
5. Dividend
5.1 Amount
NVT has a Yearly Dividend Yield of 1.25%.
Compared to an average industry Dividend Yield of 4.65, NVT pays a better dividend. On top of this NVT pays more dividend than 87.37% of the companies listed in the same industry.
With a Dividend Yield of 1.25, NVT pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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
21.84% 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 2Y10.84%
EPS Next 3Y10.09%
66.53
+0.37 (+0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.25%
Inst Owner Change5.44%
Ins Owners0.62%
Ins Owner Change35.7%
Market Cap10.95B
Analysts83.53
Price Target74.46 (11.92%)
Short Float %3.45%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)-7.69%
PT rev (3m)-12.44%
EPS NQ rev (1m)-1.73%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)1.55%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)8.01%
Revenue NQ rev (3m)7.89%
Revenue NY rev (1m)8.89%
Revenue NY rev (3m)8.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.55 | ||
| Fwd PE | 19.27 | ||
| P/S | 3.4 | ||
| P/FCF | 20.5 | ||
| P/OCF | 17.86 | ||
| P/B | 3.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.72 |
EPS(TTM)2.71
EY4.07%
EPS(NY)3.45
Fwd EY5.19%
FCF(TTM)3.25
FCFY4.88%
OCF(TTM)3.73
OCFY5.6%
SpS19.58
BVpS21.96
TBVpS-1.03
PEG (NY)2.32
PEG (5Y)2.6
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 | 3.44 |
F-Score6
WACC8.67%
ROIC/WACC0.88
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 Y10.6%
EPS Next 2Y10.84%
EPS Next 3Y10.09%
EPS Next 5Y7.26%
Revenue 1Y (TTM)-5.12%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%-7.47%
Revenue Next Year13.3%
Revenue Next 2Y11.12%
Revenue Next 3Y9.62%
Revenue Next 5Y5.51%
EBIT growth 1Y-11.01%
EBIT growth 3Y14.59%
EBIT growth 5Y9.07%
EBIT Next Year26.58%
EBIT Next 3Y13.98%
EBIT Next 5Y10.11%
FCF growth 1Y31.73%
FCF growth 3Y19.46%
FCF growth 5Y13.85%
OCF growth 1Y34.05%
OCF growth 3Y19.88%
OCF growth 5Y13.84%