nVent Electric plc
nVent Electric plc Fundamental Analysis
nVent Electric plc (NVT) shows moderate financial fundamentals with a PE ratio of 26.53, profit margin of 18.25%, and ROE of 19.60%. The company generates $3.9B in annual revenue with strong year-over-year growth of 12.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NVT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNVT demonstrates superior asset utilization.
Valuation Score
ModerateNVT shows balanced valuation metrics.
Growth Score
ModerateNVT shows steady but slowing expansion.
Financial Health Score
ExcellentNVT maintains a strong and stable balance sheet.
Profitability Score
ExcellentNVT achieves industry-leading margins.
Key Financial Metrics
Is NVT Expensive or Cheap?
P/E Ratio
NVT trades at 26.53 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NVT's PEG of 1.43 indicates fair valuation.
Price to Book
The market values nVent Electric plc at 5.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.00 times EBITDA. This signals the market has high growth expectations.
How Well Does NVT Make Money?
Net Profit Margin
For every $100 in sales, nVent Electric plc keeps $18.25 as profit after all expenses.
Operating Margin
Core operations generate 15.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.60 in profit for every $100 of shareholder equity.
ROA
nVent Electric plc generates $10.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
nVent Electric plc produces operating cash flow of $464.51M, showing steady but balanced cash generation.
Free Cash Flow
nVent Electric plc produces free cash flow of $371.35M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.30 in free cash annually.
FCF Yield
NVT converts 1.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How NVT Stacks Against Its Sector Peers
| Metric | NVT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.53 | 26.76 | Neutral |
| ROE | 19.60% | 1300.00% | Weak |
| Net Margin | 18.25% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.42 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.63 | 10.68 | Neutral |
| ROA | 10.37% | -1545134.00% (disorted) | Strong |
NVT outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews nVent Electric plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.42%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
54.48%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
54.47%
Industry Style: Cyclical, Value, Infrastructure
High Growth