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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

Company profile fields for nVent Electric (NVT)
Profile ItemNVT
NamenVent Electric plc
Country/RegionUnited Kingdom
GICS SectorIndustrials
GICS Industry GroupCapital Goods
GICS IndustryElectrical Equipment
GICS Sub-IndustryElectrical Components & Equipment
Market Capitalization17.16 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateApril 24, 2018
Security TypeCommon Stock

Price Performance

Cumulative Growth

NVT
GSPC
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nVent Electric (NVT) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for nVent Electric (NVT) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for nVent Electric (NVT) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

nVent Electric (NVT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: NVTIndustry 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

NVT
GSPC
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nVent Electric (NVT) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for nVent Electric (NVT) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

nVent Electric (NVT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: NVTIndustry group median
Volatility (1Y, Annualized)53.94%44.38%
Beta (5Y)1.411.19
Max Drawdown (5Y)-46.67%-49.95%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. NVT is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

nVent Electric (NVT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: NVTIndustry group median
Sharpe Ratio (1Y)-0.030.06
Sortino Ratio (1Y)-0.030.09

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
--
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Where nVent Electric (NVT) stands on ROE within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where nVent Electric (NVT) stands on net margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where nVent Electric (NVT) stands on operating margin within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

nVent Electric (NVT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: NVTIndustry 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.

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nVent Electric (NVT): Revenue Growth across different time periods, set against Capital Goods industry-group medians.

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.

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nVent Electric (NVT): EPS Growth across different time periods, set against Capital Goods industry-group medians.

Growth Metrics

nVent Electric (NVT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: NVTIndustry 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
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Where nVent Electric (NVT) stands on current ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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
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Where nVent Electric (NVT) stands on debt-to-equity ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

nVent Electric (NVT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: NVTIndustry group median
Current Ratio (MRQ)2.402.08
Debt / Equity (MRQ)0.570.60
Net Debt / EBITDA1.051.78

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%
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Where nVent Electric (NVT) stands on dividend yield within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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%
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Where nVent Electric (NVT) stands on payout ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

nVent Electric (NVT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: NVTIndustry 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
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Where nVent Electric (NVT) stands on P/E ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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
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Where nVent Electric (NVT) stands on P/S ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

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
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Where nVent Electric (NVT) stands on P/B ratio within its Capital Goods peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

nVent Electric (NVT) metric values compared with Capital Goods industry-group medians
MetricCurrent stock: NVTIndustry group median
P/E Ratio (TTM)25.7825.41
P/S Ratio (TTM)3.242.15
P/B Ratio (MRQ)4.173.12
Free Cash Flow Yield (TTM)2.93%3.03%