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.

Rewards

PE ratio (17.7x) is below the US market (18.7x)

Earnings are forecast to grow 13.46% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Fair value with mediocre balance sheet.


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

1.0%

NVT

2.6%

US Electrical

1.3%

US Market


1 Year Return

10.2%

NVT

26.2%

US Electrical

19.4%

US Market

Return vs Industry: NVT underperformed the US Electrical industry which returned 26.2% over the past year.

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


Shareholder returns

NVTIndustryMarket
7 Day1.0%2.6%1.3%
30 Day4.9%3.5%2.6%
90 Day11.5%11.1%5.0%
1 Year13.5%10.2%28.8%26.2%22.0%19.4%
3 Yearn/a41.1%33.1%46.8%37.3%
5 Yearn/a51.1%35.8%66.3%48.0%

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?

17.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NVT ($24.87) is trading above our estimate of fair value ($18.32)

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


Price To Earnings Ratio

PE vs Industry: NVT is good value based on its PE Ratio (17.7x) compared to the Electrical industry average (18.7x).

PE vs Market: NVT is good value based on its PE Ratio (17.7x) compared to the US market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: NVT is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NVT is good value based on its PB Ratio (1.6x) compared to the US Electrical industry average (1.6x).


Next Steps

Future Growth

How is nVent Electric forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NVT's forecast earnings growth (13.5% per year) is above the savings rate (1.7%).

Earnings vs Market: NVT's earnings (13.5% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: NVT's earnings are forecast to grow, but not significantly.

Revenue vs Market: NVT's revenue (3.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NVT's revenue (3.1% 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?

1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVT has high quality earnings.

Growing Profit Margin: NVT's current net profit margins (11.1%) are lower than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: NVT's earnings have grown by 1.2% 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 (-23.6%) over the past year, making it difficult to compare to the Electrical industry average (4.7%).


Return on Equity

High ROE: NVT's Return on Equity (9.5%) 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 ($806.4M) exceed its short term liabilities ($437.3M).

Long Term Liabilities: NVT's short term assets ($806.4M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: NVT's debt to equity ratio (44.8%) is considered high.

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 (27.7%).

Interest Coverage: NVT's interest payments on its debt are well covered by EBIT (8.1x 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 0.7x debt).


Next Steps

Dividend

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

2.81%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: NVT's dividend (2.81%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: NVT's dividend (2.81%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether NVT's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if NVT's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.8%), NVT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NVT's dividends in 3 years are forecast to be well covered by earnings (38.1% payout ratio).


Next Steps

Management

What is the CEO of nVent Electric's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Beth Wozniak (54yo)

1.7yrs

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 ($USD4.69M) is about average for companies of similar size in the US market ($USD5.09M).

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


Management Age and Tenure

1.7yrs

Average Tenure

51yo

Average Age

Experienced Management: NVT's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

61yo

Average Age

Experienced Board: NVT's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$106,45012 Aug 19
Beth Wozniak
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares5,000
Max PriceUS$21.29
BuyUS$41,01107 Aug 19
Michael Ducker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$20.51
BuyUS$48,13224 May 19
Michael Ducker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$24.07
SellUS$73,575,00017 May 19
Trian Fund Management, L.P.
EntityCompany
Shares3,000,000
Max PriceUS$24.53
SellUS$9,549,27410 May 19
Trian Fund Management, L.P.
EntityCompany
Shares366,901
Max PriceUS$26.52
SellUS$18,173,58501 May 19
Trian Fund Management, L.P.
EntityCompany
Shares648,885
Max PriceUS$28.02

Ownership Breakdown

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


Management Team

  • Sara Zawoyski (45yo)

    Executive VP & CFO

    • Tenure: 0.08yrs
  • Lynnette Heath (51yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.7yrs
    • Compensation: US$1.12m
  • Jon Lammers (54yo)

    Executive VP

    • Tenure: 1.7yrs
    • Compensation: US$1.62m
  • J. Weigelt

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Beth Wozniak (54yo)

    CEO & Director

    • Tenure: 1.7yrs
    • Compensation: US$4.69m
  • Randolph Wacker (54yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.7yrs
  • Robert Van Der Kolk (50yo)

    President of Electrical & Fastening Solutions

    • Tenure: 1.9yrs
  • Joe Ruzynski (43yo)

    President of Enclosures

    • Tenure: 1.9yrs
  • Aravind Padmanabhan

    Executive VP & CTO

    • Tenure: 0yrs
  • Jill Saletta

    Vice President of Communications

    • Tenure: 0yrs

Board Members

  • William Monahan (71yo)

    Lead Director

    • Tenure: 1.7yrs
    • Compensation: US$211.66k
  • Randy Hogan (63yo)

    Non-Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: US$276.66k
  • Michael Ducker (65yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$193.33k
  • Ivey Cameron (60yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$191.66k
  • Ronald Merriman (74yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$204.99k
  • David Ho (60yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$201.33k
  • Herbert Parker (61yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$191.66k
  • Jerry Burris (60yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$203.33k
  • Beth Wozniak (54yo)

    CEO & Director

    • Tenure: 1.7yrs
    • Compensation: US$4.69m

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$4.207b
  • 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 internatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 01:22
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.