NVENT ELECTRIC PLC (NVT) Stock Fundamental Analysis
NYSE:NVT - New York Stock Exchange, Inc. - IE00BDVJJQ56 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to NVT. NVT was compared to 97 industry peers in the Electrical Equipment industry. While NVT belongs to the best of the industry regarding profitability, 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.
NVT had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NVT had a positive operating cash flow.
1.2 Ratios
NVT has a better Return On Assets (4.93%) than 82.47% of its industry peers.
NVT's Return On Equity of 10.25% is amongst the best of the industry. NVT outperforms 83.51% of its industry peers.
With an excellent Return On Invested Capital value of 8.09%, NVT belongs to the best of the industry, outperforming 84.54% 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 9.64%.
The last Return On Invested Capital (8.09%) for NVT is above the 3 year average (7.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | 10.25% | ||
| ROIC | 8.09% |
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 10.09%. This is amongst the best in the industry. NVT outperforms 88.66% of its industry peers.
In the last couple of years the Profit Margin of NVT has grown nicely.
NVT's Operating Margin of 18.47% is amongst the best of the industry. NVT outperforms 95.88% of its industry peers.
NVT's Operating Margin has improved in the last couple of years.
NVT's Gross Margin of 40.57% is amongst the best of the industry. NVT outperforms 89.69% of its industry peers.
NVT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.47% | ||
| PM (TTM) | 10.09% | ||
| GM | 40.57% |
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.
NVT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NVT has a worse debt to assets ratio.
2.2 Solvency
NVT has an Altman-Z score of 2.81. This is not the best score and indicates that NVT is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of NVT (2.81) is better than 70.10% of its industry peers.
The Debt to FCF ratio of NVT is 3.82, which is a good value as it means it would take NVT, 3.82 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.82, NVT is doing good in the industry, outperforming 72.16% of the companies in the same industry.
NVT has a Debt/Equity ratio of 0.66. This is a neutral value indicating NVT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, NVT perfoms like the industry average, outperforming 43.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.91
WACC8.88%
2.3 Liquidity
NVT has a Current Ratio of 1.73. This is a normal value and indicates that NVT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.73, NVT is in line with its industry, outperforming 50.52% of the companies in the same industry.
NVT has a Quick Ratio of 1.28. This is a normal value and indicates that NVT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NVT (1.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.28 |
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.
The Revenue has grown by 12.63% in the past year. This is quite good.
NVT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.40% yearly.
EPS 1Y (TTM)-14.24%
EPS 3Y12.76%
EPS 5Y9.44%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)12.63%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%-7.47%
3.2 Future
NVT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.26% yearly.
NVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.51% yearly.
EPS Next Y8.9%
EPS Next 2Y8.98%
EPS Next 3Y9.57%
EPS Next 5Y7.26%
Revenue Next Year4.05%
Revenue Next 2Y4.6%
Revenue Next 3Y4.52%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.56, NVT is valued on the expensive side.
NVT's Price/Earnings ratio is a bit cheaper when compared to the industry. NVT is cheaper than 75.26% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.18. NVT is around the same levels.
Based on the Price/Forward Earnings ratio of 18.32, the valuation of NVT can be described as rather expensive.
78.35% 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 20.81. NVT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 18.32 |
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 76.29% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVT indicates a rather cheap valuation: NVT is cheaper than 80.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.69 | ||
| EV/EBITDA | 15.74 |
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.
PEG (NY)2.53
PEG (5Y)2.39
EPS Next 2Y8.98%
EPS Next 3Y9.57%
5. Dividend
5.1 Amount
NVT has a Yearly Dividend Yield of 1.34%.
Compared to an average industry Dividend Yield of 4.67, NVT pays a better dividend. On top of this NVT pays more dividend than 88.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, NVT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 38.22% 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.
DP38.22%
EPS Next 2Y8.98%
EPS Next 3Y9.57%
NYSE:NVT (5/5/2025, 3:55:05 PM)
61.15
+1.53 (+2.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.25%
Inst Owner Change-0.42%
Ins Owners0.62%
Ins Owner Change35.44%
Market Cap10.07B
Analysts83.53
Price Target72.68 (18.86%)
Short Float %3.11%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend0.77
Dividend Growth(5Y)1.99%
DP38.22%
Div Incr Years1
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.3%
Min EPS beat(2)-19.1%
Max EPS beat(2)-1.51%
EPS beat(4)1
Avg EPS beat(4)-4.65%
Min EPS beat(4)-19.1%
Max EPS beat(4)3.58%
EPS beat(8)4
Avg EPS beat(8)1.22%
EPS beat(12)8
Avg EPS beat(12)4.09%
EPS beat(16)12
Avg EPS beat(16)6.62%
Revenue beat(2)0
Avg Revenue beat(2)-8.27%
Min Revenue beat(2)-13.41%
Max Revenue beat(2)-3.13%
Revenue beat(4)1
Avg Revenue beat(4)-4.68%
Min Revenue beat(4)-13.41%
Max Revenue beat(4)0.18%
Revenue beat(8)2
Avg Revenue beat(8)-3.17%
Revenue beat(12)6
Avg Revenue beat(12)-0.22%
Revenue beat(16)10
Avg Revenue beat(16)1.85%
PT rev (1m)-12.8%
PT rev (3m)-14.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.28%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-2.87%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 18.32 | ||
| P/S | 3.06 | ||
| P/FCF | 17.69 | ||
| P/OCF | 15.66 | ||
| P/B | 3.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.74 |
EPS(TTM)2.71
EY4.43%
EPS(NY)3.34
Fwd EY5.46%
FCF(TTM)3.46
FCFY5.65%
OCF(TTM)3.91
OCFY6.39%
SpS19.98
BVpS19.66
TBVpS-3.47
PEG (NY)2.53
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.93% | ||
| ROE | 10.25% | ||
| ROCE | 10.24% | ||
| ROIC | 8.09% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 24.08% | ||
| OM | 18.47% | ||
| PM (TTM) | 10.09% | ||
| GM | 40.57% | ||
| FCFM | 17.3% |
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 | 0.66 | ||
| Debt/FCF | 3.82 | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 50.68% | ||
| Cap/Sales | 2.25% | ||
| Interest Coverage | 4.51 | ||
| Cash Conversion | 85.35% | ||
| Profit Quality | 171.52% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 2.81 |
F-Score4
WACC8.88%
ROIC/WACC0.91
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 Y8.9%
EPS Next 2Y8.98%
EPS Next 3Y9.57%
EPS Next 5Y7.26%
Revenue 1Y (TTM)12.63%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%-7.47%
Revenue Next Year4.05%
Revenue Next 2Y4.6%
Revenue Next 3Y4.52%
Revenue Next 5Y5.51%
EBIT growth 1Y0.75%
EBIT growth 3Y14.59%
EBIT growth 5Y9.07%
EBIT Next Year24.42%
EBIT Next 3Y12.81%
EBIT Next 5Y10.11%
FCF growth 1Y24.5%
FCF growth 3Y19.46%
FCF growth 5Y13.85%
OCF growth 1Y21.78%
OCF growth 3Y19.88%
OCF growth 5Y13.84%