NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
USA - NYSE:NVT - IE00BDVJJQ56 - Common Stock
106.28 USD
+2.06 (+1.98%)
107.71 USD
+1.43 (+1.35%)
Overall NVT gets a fundamental rating of 6 out of 10. We evaluated NVT against 92 industry peers in the Electrical Equipment industry. NVT scores excellent on profitability, 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.
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
With an excellent Return On Assets value of 8.69%, NVT belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
NVT's Return On Equity of 16.65% is amongst the best of the industry. NVT outperforms 89.13% of its industry peers.
The Return On Invested Capital of NVT (7.47%) is better than 77.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVT is below the industry average of 10.22%.
| 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.
Looking at the Operating Margin, with a value of 16.74%, NVT belongs to the top of the industry, outperforming 90.22% 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 86.96% of its industry peers.
NVT's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NVT is destroying value.
The number of shares outstanding for NVT remains at a similar level compared to 1 year ago.
Compared to 5 years ago, NVT has less shares outstanding
The debt/assets ratio for NVT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.37 indicates that NVT is not in any danger for bankruptcy at the moment.
NVT has a better Altman-Z score (4.37) than 76.09% 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.
NVT has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
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 | 4.37 |
ROIC/WACC0.84
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.67 indicates that NVT should not have too much problems paying its short term obligations.
The Current ratio of NVT (1.67) is comparable to the rest of the industry.
A Quick Ratio of 1.20 indicates that NVT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, NVT is in line with its industry, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
NVT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.33%.
NVT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.44% yearly.
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
The Earnings Per Share is expected to grow by 11.48% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.02% on average over the next years. This is quite good.
EPS Next Y18.44%
EPS Next 2Y17.15%
EPS Next 3Y14.79%
EPS Next 5Y11.48%
Revenue Next Year20.27%
Revenue Next 2Y15.74%
Revenue Next 3Y12.8%
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 38.65, NVT can be considered very expensive at the moment.
70.65% 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 (26.76), we can say NVT is valued slightly more expensively.
A Price/Forward Earnings ratio of 27.56 indicates a quite expensive valuation of NVT.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, NVT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.65 | ||
| Fwd PE | 27.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVT is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NVT is valued a bit cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.04 | ||
| EV/EBITDA | 26.28 |
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.
NVT's earnings are expected to grow with 14.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.1
PEG (5Y)4.09
EPS Next 2Y17.15%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
NVT has a yearly dividend return of 0.80%, which is pretty low.
Compared to an average industry Dividend Yield of 3.04, NVT pays a better dividend. On top of this NVT pays more dividend than 84.78% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, NVT's dividend is way lower than the S&P500 average.
| 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.
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
NVT pays out 21.93% of its income as dividend. This is a sustainable payout ratio.
NVT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.93%
EPS Next 2Y17.15%
EPS Next 3Y14.79%
106.28
+2.06 (+1.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change-0.48%
Ins Owners0.79%
Ins Owner Change-1.87%
Market Cap17.11B
Revenue(TTM)3.31B
Net Income(TTM)585.90M
Analysts83.53
Price Target101.28 (-4.7%)
Short Float %1.82%
Short Ratio1.59
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)4.57%
EPS NY rev (1m)0.19%
EPS NY rev (3m)6.21%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)5.7%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)5.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.65 | ||
| Fwd PE | 27.56 | ||
| P/S | 5.17 | ||
| P/FCF | 44.04 | ||
| P/OCF | 36.75 | ||
| P/B | 4.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.28 |
EPS(TTM)2.75
EY2.59%
EPS(NY)3.86
Fwd EY3.63%
FCF(TTM)2.41
FCFY2.27%
OCF(TTM)2.89
OCFY2.72%
SpS20.54
BVpS21.86
TBVpS-6.93
PEG (NY)2.1
PEG (5Y)4.09
Graham Number36.78
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%
ROICexgc growth 3Y-20.81%
ROICexgc 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 | 4.37 |
F-Score4
WACC8.92%
ROIC/WACC0.84
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 Y18.44%
EPS Next 2Y17.15%
EPS Next 3Y14.79%
EPS Next 5Y11.48%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%9.41%
Revenue Next Year20.27%
Revenue Next 2Y15.74%
Revenue Next 3Y12.8%
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%
NVENT ELECTRIC PLC / NVT FAQ
Can you provide the ChartMill fundamental rating for NVENT ELECTRIC PLC?
ChartMill assigns a fundamental rating of 6 / 10 to NVT.
What is the valuation status of NVENT ELECTRIC PLC (NVT) stock?
ChartMill assigns a valuation rating of 4 / 10 to NVENT ELECTRIC PLC (NVT). This can be considered as Fairly Valued.
Can you provide the profitability details for NVENT ELECTRIC PLC?
NVENT ELECTRIC PLC (NVT) has a profitability rating of 8 / 10.
How financially healthy is NVENT ELECTRIC PLC?
The financial health rating of NVENT ELECTRIC PLC (NVT) is 5 / 10.
Can you provide the dividend sustainability for NVT stock?
The dividend rating of NVENT ELECTRIC PLC (NVT) is 5 / 10 and the dividend payout ratio is 21.93%.