nVent Electric Plc (NVT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Amphenol Corp.

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nVent Electric Plc

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Methode Electronics, Inc.

RxSight, Inc.

Why is nVent Electric Plc ?

Company has a low Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At USD 180.55 MM has Grown at -62.97%
OPERATING CASH FLOW(Y) Lowest at USD 468.3 MM
ROCE(HY) Lowest at 7.53%

With ROCE of 14.15%, it has a expensive valuation with a 2.87 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 44.92%, its profits have fallen by -52.8%

Consistent Returns over the last 3 years

Along with generating 44.92% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to nVent Electric Plc should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is nVent Electric Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

nVent Electric Plc

109.55%

0.90

44.08%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.27%

EBIT Growth (5y)

17.93%

EBIT to Interest (avg)

9.64

Debt to EBITDA (avg)

1.63

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.65

Tax Ratio

42.78%

Dividend Payout Ratio

31.11%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

12.12%

ROE (avg)

12.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.96

EV to EBIT

31.44

EV to EBITDA

23.65

EV to Capital Employed

3.90

EV to Sales

5.10

PEG Ratio

0.87

Dividend Yield

0.72%

ROCE (Latest)

12.41%

ROE (Latest)

11.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

19What is working for the Company

NET SALES(Q)

Highest at USD 1,066.7 MM

DEBT-EQUITY RATIO (HY)

Lowest at 39.55 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.83 times

DIVIDEND PER SHARE(HY)

Highest at USD 5.63

PRE-TAX PROFIT(Q)

Highest at USD 157.1 MM

NET PROFIT(Q)

At USD 116.39 MM has Grown at 53.14%

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 465.2 MM

RAW MATERIAL COST(Y)

Grown by 8.66% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 20.76 %

Here's what is working for nVent Electric Plc

Net Sales

Highest at USD 1,066.7 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Net Sales

At USD 1,066.7 MM has Grown at 19.23%

over average net sales of the previous four periods of USD 894.65 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 157.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 116.39 MM has Grown at 53.14%

over average net sales of the previous four periods of USD 76 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 39.55 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 5.83 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 5.63

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for nVent Electric Plc

Operating Cash Flow

Lowest at USD 465.2 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit Margin

Lowest at 20.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 8.66% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales