nVent Electric (NVT) Stock Analysis
This is a peer-relative look at nVent Electric (NVT): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | NVT |
|---|---|
| Name | nVent Electric plc |
| Country/Region | United Kingdom |
| GICS Sector | Industrials |
| GICS Industry Group | Capital Goods |
| GICS Industry | Electrical Equipment |
| GICS Sub-Industry | Electrical Components & Equipment |
| Market Capitalization | 17.16 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | April 24, 2018 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: NVT | Industry group median |
|---|---|---|
| Total Return (1Y) | 2.86% | 6.84% |
| Total Return (3Y, Annualized) | 32.72% | 17.66% |
| Total Return (5Y, Annualized) | 26.96% | 9.09% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: NVT | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 53.94% | 44.38% |
| Beta (5Y) | 1.41 | 1.19 |
| Max Drawdown (5Y) | -46.67% | -49.95% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: NVT | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.03 | 0.06 |
| Sortino Ratio (1Y) | -0.03 | 0.09 |
Profitability
ROE (TTM)
nVent Electric (NVT) posts ROE of 17.42%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
NVT
Capital Goods industry group
17.42%
Group distribution
- Max
- 40.55%
- Q3
- 19.29%
- NVT
- 17.42%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Largest peers
- GEV
- 93.04%
- CAT
- 56.14%
- GE
- 50.17%
- DE
- 18.24%
- NVT
- 17.42%
- RTX
- 12.85%
- BA
- --
Net Margin (TTM)
nVent Electric (NVT) keeps 12.83% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
NVT
Capital Goods industry group
12.83%
Group distribution
- Max
- 27.47%
- NVT
- 12.83%
- Q3
- 12.10%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Largest peers
- GEV
- 23.54%
- GE
- 17.31%
- CAT
- 15.21%
- NVT
- 12.83%
- DE
- 10.17%
- RTX
- 8.75%
- BA
- 8.07%
Operating Margin (TTM)
nVent Electric (NVT) turns 18.75% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
NVT
Capital Goods industry group
18.75%
Group distribution
- Max
- 36.60%
- NVT
- 18.75%
- Q3
- 18.33%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
Largest peers
- CAT
- 20.19%
- NVT
- 18.75%
- GE
- 18.49%
- RTX
- 15.54%
- DE
- 13.37%
- GEV
- 12.77%
- BA
- 0.30%
Profitability Metrics
| Metric | Current stock: NVT | Industry group median |
|---|---|---|
| ROE (TTM) | 17.42% | 12.12% |
| ROA (TTM) | 7.88% | 5.29% |
| Net Margin (TTM) | 12.83% | 6.30% |
| Operating Margin (TTM) | 18.75% | 11.12% |
| Gross Margin (TTM) | 36.17% | 29.63% |
Growth
Revenue Growth
nVent Electric (NVT) grew revenue 29.51%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.
EPS Growth
nVent Electric (NVT) grew earnings per share 118.78%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.
Growth Metrics
| Metric | Current stock: NVT | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 29.51% | 8.11% |
| Revenue Growth (3Y CAGR) | 19.26% | 6.45% |
| EPS Growth (YoY) | 118.78% | 5.45% |
| EPS Growth (3Y CAGR) | 21.89% | 7.15% |
Financial Strength
Current Ratio (MRQ)
nVent Electric (NVT) has current ratio of 2.40, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
NVT
Capital Goods industry group
2.40
Group distribution
- Max
- 5.22
- Q3
- 2.95
- NVT
- 2.40
- Median
- 2.08
- Q1
- 1.43
- Min
- 0.36
Largest peers
- NVT
- 2.40
- DE
- 2.13
- CAT
- 1.42
- BA
- 1.13
- RTX
- 1.05
- GE
- 0.98
- GEV
- 0.83
Debt / Equity (MRQ)
nVent Electric (NVT) has debt-to-equity ratio of 0.57, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
NVT
Capital Goods industry group
0.57
Group distribution
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- NVT
- 0.57
- Q1
- 0.29
- Min
- 0.00
Largest peers
- BA
- 7.39
- DE
- 2.30
- CAT
- 2.10
- GE
- 1.16
- NVT
- 0.57
- RTX
- 0.55
- GEV
- 0.30
Financial Strength Metrics
| Metric | Current stock: NVT | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.40 | 2.08 |
| Debt / Equity (MRQ) | 0.57 | 0.60 |
| Net Debt / EBITDA | 1.05 | 1.78 |
Dividends
Dividend Yield (TTM)
nVent Electric (NVT) has dividend yield of 0.84%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
NVT
Capital Goods industry group
0.84%
Group distribution
- Max
- 2.66%
- Q3
- 1.14%
- NVT
- 0.84%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 1.47%
- CAT
- 1.13%
- DE
- 0.98%
- NVT
- 0.84%
- GE
- 0.56%
- GEV
- 0.26%
- BA
- 0.00%
Dividend Payout Ratio (TTM)
nVent Electric (NVT) has payout ratio of 20.15%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
NVT
Capital Goods industry group
20.15%
Group distribution
- Max
- 67.39%
- Q3
- 28.02%
- NVT
- 20.15%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 45.85%
- DE
- 36.02%
- CAT
- 24.18%
- GE
- 20.23%
- NVT
- 20.15%
- GEV
- 4.59%
- BA
- 0.00%
Dividend Metrics
| Metric | Current stock: NVT | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.84% | 0.24% |
| Dividend Payout Ratio (TTM) | 20.15% | 6.86% |
Valuation
P/E Ratio (TTM)
nVent Electric (NVT) trades at P/E ratio of 25.78, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
NVT
Capital Goods industry group
25.78
Group distribution
- Max
- 59.38
- Q3
- 35.92
- NVT
- 25.78
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
Largest peers
- DE
- 37.33
- GE
- 36.94
- RTX
- 30.82
- NVT
- 25.78
- CAT
- 21.92
- GEV
- 20.32
- BA
- 17.89
P/S Ratio (TTM)
nVent Electric (NVT) trades at 3.24 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
NVT
Capital Goods industry group
3.24
Group distribution
- Max
- 7.54
- Q3
- 3.76
- NVT
- 3.24
- Median
- 2.15
- Q1
- 1.03
- Min
- 0.03
Largest peers
- GE
- 6.38
- GEV
- 4.65
- DE
- 3.78
- CAT
- 3.29
- NVT
- 3.24
- RTX
- 2.66
- BA
- 1.45
P/B Ratio (MRQ)
nVent Electric (NVT) trades at 4.17 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
NVT
Capital Goods industry group
4.17
Group distribution
- Max
- 9.66
- Q3
- 5.00
- NVT
- 4.17
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
Largest peers
- BA
- 20.99
- GE
- 19.06
- GEV
- 18.00
- CAT
- 11.90
- DE
- 6.47
- NVT
- 4.17
- RTX
- 3.69
Valuation Metrics
| Metric | Current stock: NVT | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 25.78 | 25.41 |
| P/S Ratio (TTM) | 3.24 | 2.15 |
| P/B Ratio (MRQ) | 4.17 | 3.12 |
| Free Cash Flow Yield (TTM) | 2.93% | 3.03% |