nVent Electric plc designs, manufactures, markets, installs, and services electrical connection and protection products in the United States, Canada, Mexico, Europe, the Middle East, Africa, and internationally.
The last earnings update was 64 days ago.
Discounted Cash Flow Calculation for NYSE:NVT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NYSE:NVT DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
nVent Electric's earnings available for a low price, and how does
this compare to other companies in the same industry?
nVent Electric's earnings are expected to grow significantly at over 20% yearly.
nVent Electric's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
nVent Electric's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Ms. Beth A. Wozniak is Chief Executive Officer and Director at nVent Electric plc since April 30, 2018. Ms. Wozniak served as the Sensing and Control team President at Honeywell International Inc. since November 2005. S&C is a business within the Honeywell Automation and Control Solutions (ACS) group. S&C serves customers worldwide with an extensive sensing, switch and control portfolio. Prior to this appointment, she was the Vice President of Business Integration for ACS, leading the overall integration of the former Novar Intelligent Building Systems into several ACS businesses. She also served as vice president of Six Sigma Plus for ACS and was the Vice President of Engineering and Program Management for the Engine Systems and Accessories Aerospace business. In 1990, she joined Honeywell as a Project Engineer working on environmental control systems for commercial and regional aircraft applications. She continued to deliver solid results for Honeywell while serving in various engineering and operations management positions. Prior to joining Honeywell, she worked for Atlantis Aerospace as a design engineer working on aircraft simulator systems. She was Senior Vice President & President of Electrical at Pentair Plc until April 30, 2018. She holds a bachelor’s degree in engineering physics from McMaster University, Hamilton, Ontario, Canada and a master’s degree in business administration from York University, Toronto, Ontario, Canada.
Beth's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Beth's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the nVent Electric management team is less than 2 years, this suggests a new team.
How Do nVent Electric plc’s (NYSE:NVT) Returns On Capital Compare To Peers?
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Why nVent Electric plc's (NYSE:NVT) High P/E Ratio Isn't Necessarily A Bad Thing
We'll show how you can use nVent Electric plc's (NYSE:NVT) P/E ratio to inform your assessment of the investment opportunity. … nVent Electric has a P/E ratio of 21.41, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Is nVent Electric plc (NYSE:NVT) As Strong As Its Balance Sheet Indicates?
Mid-caps stocks, like nVent Electric plc (NYSE:NVT) with a market capitalization of US$4.9b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … Let’s take a look at NVT’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.
Calculating The Fair Value Of nVent Electric plc (NYSE:NVT)
by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.
nVent Electric plc (NYSE:NVT): 2 Days To Buy Before The Ex-Dividend Date
Investors who want to cash in on nVent Electric plc's (NYSE:NVT) upcoming dividend of US$0.17 per share have only 2 days left to buy the shares before its ex-dividend date, 24 January 2019, in time for dividends payable on the 08 February 2019. … Below, I will explain how holding nVent Electric can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Has it paid dividend every year without dramatically reducing payout in the past?
Have Insiders Been Selling nVent Electric plc (NYSE:NVT) Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in nVent Electric plc (NYSE:NVT). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … nVent Electric Insider Transactions Over The Last Year.
Is nVent Electric plc's (NYSE:NVT) 12% ROE Strong Compared To Its Industry?
To keep the lesson grounded in practicality, we'll use ROE to better understand nVent Electric plc (NYSE:NVT). … nVent Electric has a ROE of 12%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity
nVent Electric plc designs, manufactures, markets, installs, and services electrical connection and protection products in the United States, Canada, Mexico, Europe, the Middle East, Africa, and internationally. The company operates through three segments: Enclosures, Thermal Management, and Electrical & Fastening Solutions. The Enclosures segment provides solutions to protect, connect, and manage heat in critical electronics, communication, control, and power equipment; physical infrastructure solutions to host, connect, and protect server and network equipment; and indoor and outdoor protection solutions for broadband voice, data, and video surveillance applications. Its products also include metallic and non-metallic enclosures, cabinets, subracks, and backplanes. The Thermal Management segment offers electric thermal solutions that connect and protect critical buildings, infrastructure, industrial processes, and people. Its thermal management systems comprise heat tracing, floor heating, fire-rated and specialty wiring, sensing, and snow melting and de-icing solutions. The Electrical & Fastening Solutions segment provides fastening solutions to connect and protect electrical and mechanical systems, and civil structures. It provides engineered electrical and fastening products. The company sells its products under the CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF, and TRACER brands. It markets its products through electrical distributors, data center contractors, original equipment manufacturers, greenfield development contractors, and maintenance contractors. The company serves energy, industrial, infrastructure, and commercial and residential sectors. nVent Electric plc was incorporated in 2017 and is based in London, the United Kingdom.
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