NYSE:NVT

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has nVent Electric's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NVT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

NVT

-1.7%

US Electrical

0.06%

US Market


1 Year Return

1.6%

NVT

12.4%

US Electrical

19.4%

US Market

Return vs Industry: NVT underperformed the US Electrical industry which returned 12.4% over the past year.

Return vs Market: NVT underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

NVTIndustryMarket
7 Day1.4%-1.7%0.06%
30 Day9.0%-0.7%1.1%
90 Day14.2%5.4%8.9%
1 Year4.5%1.6%14.7%12.4%21.9%19.4%
3 Yearn/a33.1%25.4%48.9%39.3%
5 Yearn/a48.5%33.6%71.9%53.1%

Price Volatility Vs. Market

How volatile is nVent Electric's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is nVent Electric undervalued compared to its fair value and its price relative to the market?

21.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NVT ($27.86) is trading above our estimate of fair value ($16.15)

Significantly Below Fair Value: NVT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NVT is poor value based on its PE Ratio (21.5x) compared to the Electrical industry average (20.9x).

PE vs Market: NVT is poor value based on its PE Ratio (21.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NVT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NVT is overvalued based on its PB Ratio (1.8x) compared to the US Electrical industry average (1.8x).


Next Steps

Future Growth

How is nVent Electric forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

2.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NVT's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if NVT's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NVT's revenue (2.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: NVT's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NVT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has nVent Electric performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVT has high quality earnings.

Growing Profit Margin: NVT's current net profit margins (10.1%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: NVT's earnings have declined by -1% per year over the past 5 years.

Accelerating Growth: NVT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NVT had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the Electrical industry average (0.6%).


Return on Equity

High ROE: NVT's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is nVent Electric's financial position?


Financial Position Analysis

Short Term Liabilities: NVT's short term assets ($798.7M) exceed its short term liabilities ($462.2M).

Long Term Liabilities: NVT's short term assets ($798.7M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: NVT's debt to equity ratio (39.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NVT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NVT's debt is well covered by operating cash flow (33.2%).

Interest Coverage: NVT's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

Inventory Level: NVT has a low level of unsold assets or inventory.

Debt Coverage by Assets: NVT's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is nVent Electric's current dividend yield, its reliability and sustainability?

2.51%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: NVT's dividend (2.51%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: NVT's dividend (2.51%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NVT has been paying a dividend for less than 10 years.

Growing Dividend: NVT has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.9%), NVT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NVT's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Beth Wozniak (54yo)

1.8yrs

Tenure

US$4,687,655

Compensation

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 No ...


CEO Compensation Analysis

Compensation vs Market: Beth's total compensation ($USD4.69M) is about average for companies of similar size in the US market ($USD4.89M).

Compensation vs Earnings: Beth's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Beth Wozniak
CEO & Director1.8yrsUS$4.69m0.000080% $3.8k
Jon Lammers
Executive VP1.8yrsUS$1.62m0.0029% $137.1k
Lynnette Heath
Executive VP & Chief Human Resources Officer1.8yrsUS$1.12m0.0020% $94.3k
Sara Zawoyski
Executive VP & CFO0.3yrsno data0.0072% $338.8k
Randolph Wacker
Senior VP & Chief Accounting Officer1.8yrsno data0.0048% $225.3k
Aravind Padmanabhan
Executive VP & CTO0.2yrsno datano data
J. Weigelt
Vice President of Investor Relations0yrsno datano data
Jill Saletta
Vice President of Communications0yrsno datano data
Joseph Ruzynski
President of Enclosures2.1yrsno data0.0057% $267.7k
Robert Van Der Kolk
President of Electrical & Fastening Solutions2.1yrsno data0.0037% $176.2k

1.8yrs

Average Tenure

51yo

Average Age

Experienced Management: NVT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Beth Wozniak
CEO & Director1.8yrsUS$4.69m0.000080% $3.8k
William Monahan
Lead Director1.8yrsUS$211.66k0.028% $1.3m
Randall Hogan
Non-Executive Chairman1.8yrsUS$276.66k0.37% $17.4m
Michael Ducker
Independent Director1.8yrsUS$193.33k0.0061% $285.6k
Susan Cameron
Independent Director1.8yrsUS$191.66k0.0038% $178.1k
Ronald Merriman
Independent Director1.8yrsUS$204.99k0.018% $827.5k
H. Ho
Independent Director1.8yrsUS$201.33k0.0066% $312.4k
Herbert Parker
Independent Director1.8yrsUS$191.66k0.0037% $174.4k
Jerry Burris
Independent Director1.8yrsUS$203.33k0.018% $855.3k
Brian Baldwin
Independent Director1.8yrsUS$193.33k0.0052% $243.2k

1.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: NVT's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

nVent Electric plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: nVent Electric plc
  • Ticker: NVT
  • Exchange: NYSE
  • Founded: 2017
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$4.713b
  • Shares outstanding: 169.15m
  • Website: https://www.nvent.com

Number of Employees


Location

  • nVent Electric plc
  • The Mille
  • 8th Floor (East)
  • London
  • Greater London
  • TW8 9DW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVTNYSE (New York Stock Exchange)YesShare CapitalUSUSDMay 2018

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 02:22
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.