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 5 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 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.
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 89.25% of its industry peers.
NVT's Return On Equity of 16.65% is amongst the best of the industry. NVT outperforms 89.25% of its industry peers.
With a decent Return On Invested Capital value of 7.43%, 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 9.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 16.65% | ||
| ROIC | 7.43% |
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
The Profit Margin of NVT (17.72%) is better than 97.85% of its industry peers.
NVT's Profit Margin has improved in the last couple of years.
NVT has a better Operating Margin (16.65%) than 91.40% of its industry peers.
In the last couple of years the Operating Margin of NVT has grown nicely.
With an excellent Gross Margin value of 39.20%, NVT belongs to the best of the industry, outperforming 89.25% of the companies in the same industry.
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 | 16.65% | ||
| 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
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.
NVT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NVT is higher compared to a year ago.
2.2 Solvency
NVT has a debt to FCF ratio of 4.55. This is a neutral value as NVT would need 4.55 years to pay back of all of its debts.
NVT has a better Debt to FCF ratio (4.55) than 75.27% 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.
With a Debt to Equity ratio value of 0.50, NVT perfoms like the industry average, outperforming 46.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.55 | ||
| Altman-Z | N/A |
ROIC/WACC0.84
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.67 indicates that NVT should not have too much problems paying its short term obligations.
NVT's Current ratio of 1.67 is in line compared to the rest of the industry. NVT outperforms 45.16% of its industry peers.
A Quick Ratio of 1.20 indicates that NVT should not have too much problems paying its short term obligations.
The Quick ratio of NVT (1.20) is comparable to the rest of the industry.
| 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.
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 -4.84% in the last 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 9.60% 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 8.42% on average per year.
EPS Next Y11.52%
EPS Next 2Y11.66%
EPS Next 3Y10.21%
EPS Next 5Y9.6%
Revenue Next Year14.29%
Revenue Next 2Y11.88%
Revenue Next 3Y9.89%
Revenue Next 5Y8.42%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 32.63 indicates a quite expensive 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 72.04% of the companies listed in the same industry.
NVT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.03.
The Price/Forward Earnings ratio is 25.61, which means the current valuation is very expensive for NVT.
74.19% of the companies in the same industry are more expensive than NVT, based on the Price/Forward Earnings ratio.
NVT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.63 | ||
| Fwd PE | 25.61 |
4.2 Price Multiples
74.19% of the companies in the same industry are more expensive than NVT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVT indicates a somewhat cheap valuation: NVT is cheaper than 76.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.06 | ||
| EV/EBITDA | 23.09 |
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.
PEG (NY)2.83
PEG (5Y)3.46
EPS Next 2Y11.66%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
NVT has a yearly dividend return of 0.88%, which is pretty low.
NVT's Dividend Yield is rather good when compared to the industry average which is at 4.13. NVT pays more dividend than 84.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NVT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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
22.00% 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.
DP22%
EPS Next 2Y11.66%
EPS Next 3Y10.21%
89.73
-0.76 (-0.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.49%
Inst Owner Change-0.09%
Ins Owners0.83%
Ins Owner Change35.83%
Market Cap14.77B
Analysts83.53
Price Target97.55 (8.72%)
Short Float %5.47%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.77
Dividend Growth(5Y)1.99%
DP22%
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)7.19%
PT rev (3m)10.31%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)0.26%
EPS NY rev (3m)2.4%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)10.59%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)9.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.63 | ||
| Fwd PE | 25.61 | ||
| P/S | 4.47 | ||
| P/FCF | 38.06 | ||
| P/OCF | 31.73 | ||
| P/B | 4.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.09 |
EPS(TTM)2.75
EY3.06%
EPS(NY)3.5
Fwd EY3.9%
FCF(TTM)2.36
FCFY2.63%
OCF(TTM)2.83
OCFY3.15%
SpS20.08
BVpS21.37
TBVpS-6.77
PEG (NY)2.83
PEG (5Y)3.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.69% | ||
| ROE | 16.65% | ||
| ROCE | 9.41% | ||
| ROIC | 7.43% | ||
| ROICexc | 7.6% | ||
| ROICexgc | 39.81% | ||
| OM | 16.65% | ||
| PM (TTM) | 17.72% | ||
| GM | 39.2% | ||
| FCFM | 11.74% |
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 | 48.31% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.49% | ||
| Profit Quality | 66.26% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | N/A |
F-Score4
WACC8.82%
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 Y11.52%
EPS Next 2Y11.66%
EPS Next 3Y10.21%
EPS Next 5Y9.6%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y6.88%
Revenue growth 5Y6.4%
Sales Q2Q%9.41%
Revenue Next Year14.29%
Revenue Next 2Y11.88%
Revenue Next 3Y9.89%
Revenue Next 5Y8.42%
EBIT growth 1Y-17.82%
EBIT growth 3Y14.59%
EBIT growth 5Y9.07%
EBIT Next Year39.52%
EBIT Next 3Y16.03%
EBIT Next 5Y12.05%
FCF growth 1Y-7.55%
FCF growth 3Y19.46%
FCF growth 5Y13.85%
OCF growth 1Y-2.45%
OCF growth 3Y19.88%
OCF growth 5Y13.84%