NVENT ELECTRIC PLC (NVT)
IE00BDVJJQ56 - Common Stock
Taking everything into account, NVT scores 6 out of 10 in our fundamental rating. NVT was compared to 86 industry peers in the Electrical Equipment industry. While NVT has a great profitability rating, 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.
Each year in the past 5 years NVT had a positive operating cash flow.
1.2 Ratios
NVT has a Return On Assets of 9.20%. This is amongst the best in the industry. NVT outperforms 88.10% of its industry peers.
Looking at the Return On Equity, with a value of 18.05%, NVT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.40%, NVT is in the better half of the industry, outperforming 79.76% 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 10.64%.
The 3 year average ROIC (8.69%) for NVT is below the current ROIC(9.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.2% | ||
| ROE | 18.05% | ||
| ROIC | 9.4% |
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
The Profit Margin of NVT (17.38%) is better than 95.24% of its industry peers.
In the last couple of years the Profit Margin of NVT has grown nicely.
NVT has a Operating Margin of 18.48%. This is amongst the best in the industry. NVT outperforms 95.24% of its industry peers.
NVT's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 41.12%, NVT belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
NVT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.48% | ||
| PM (TTM) | 17.38% | ||
| GM | 41.12% |
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 below the Cost of Capital (WACC), which means it is destroying value.
NVT has about the same amout of shares outstanding than it did 1 year ago.
NVT has less shares outstanding than it did 5 years ago.
NVT has a worse debt/assets ratio than last year.
2.2 Solvency
NVT has an Altman-Z score of 3.83. This indicates that NVT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NVT (3.83) is better than 75.00% of its industry peers.
The Debt to FCF ratio of NVT is 3.90, which is a good value as it means it would take NVT, 3.90 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NVT (3.90) is better than 75.00% of its industry peers.
NVT has a Debt/Equity ratio of 0.56. This is a neutral value indicating NVT is somewhat dependend on debt financing.
NVT has a worse Debt to Equity ratio (0.56) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.9 | ||
| Altman-Z | 3.83 |
ROIC/WACC0.95
WACC9.86%
2.3 Liquidity
NVT has a Current Ratio of 1.82. This is a normal value and indicates that NVT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NVT (1.82) is comparable to the rest of the industry.
A Quick Ratio of 1.22 indicates that NVT should not have too much problems paying its short term obligations.
NVT has a Quick ratio (1.22) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
NVT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.44%, which is quite impressive.
Measured over the past years, NVT shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.37% on average per year.
The Revenue has grown by 12.19% in the past year. This is quite good.
The Revenue has been growing by 8.07% on average over the past years. This is quite good.
EPS 1Y (TTM)23.44%
EPS 3Y26.55%
EPS 5Y21.37%
EPS growth Q2Q14.93%
Revenue 1Y (TTM)12.19%
Revenue growth 3Y17.76%
Revenue growth 5Y8.07%
Revenue growth Q2Q18.09%
3.2 Future
NVT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.13% yearly.
Based on estimates for the next years, NVT will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
EPS Next Y7.32%
EPS Next 2Y8.31%
EPS Next 3Y8.13%
EPS Next 5YN/A
Revenue Next Year8.99%
Revenue Next 2Y7.05%
Revenue Next 3Y6.14%
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.32 indicates a quite expensive valuation of NVT.
NVT's Price/Earnings ratio is a bit cheaper when compared to the industry. NVT is cheaper than 72.62% of the companies in the same industry.
NVT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.15.
A Price/Forward Earnings ratio of 22.29 indicates a rather expensive valuation of NVT.
69.05% of the companies in the same industry are more expensive than NVT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.20. NVT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.29 |
4.2 Price Multiples
NVT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NVT is cheaper than 67.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NVT is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.05 | ||
| EV/EBITDA | 20.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NVT may justify a higher PE ratio.
PEG (NY)3.46
PEG (5Y)1.18
EPS Next 2Y8.31%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, NVT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.21, NVT pays a better dividend. On top of this NVT pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NVT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of NVT is nicely growing with an annual growth rate of 14.84%!
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)14.84%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
20.60% of the earnings are spent on dividend by NVT. This is a low number and sustainable payout ratio.
NVT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.6%
EPS Next 2Y8.31%
EPS Next 3Y8.13%
NVENT ELECTRIC PLC
NYSE:NVT (5/17/2024, 7:17:02 PM)
After market: 80.01 0 (0%)80.01
-0.4 (-0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
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Market Cap13.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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SpS
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TBVpS
PEG (NY)3.46
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.2% | ||
| ROE | 18.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.48% | ||
| PM (TTM) | 17.38% | ||
| GM | 41.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
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Growth
EPS 1Y (TTM)23.44%
EPS 3Y26.55%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.19%
Revenue growth 3Y17.76%
Revenue growth 5Y
Revenue growth Q2Q
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Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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