Why is nVent Electric Plc ?
1
Company has a low Debt to Equity ratio (avg) at times
2
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%
3
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%
4
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
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
151.2%
0.90
44.08%
S&P 500
25.41%
0.70
20.15%
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)
0.63
Tax Ratio
42.78%
Dividend Payout Ratio
31.11%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
12.12%
ROE (avg)
12.67%
Valuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
Price to Book Value
5.07
EV to EBIT
32.13
EV to EBITDA
24.17
EV to Capital Employed
3.99
EV to Sales
5.21
PEG Ratio
0.63
Dividend Yield
0.70%
ROCE (Latest)
12.41%
ROE (Latest)
11.79%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish
Technical Movement
25What is working for the Company
NET SALES(Q)
Highest at USD 1,242 MM
INTEREST COVERAGE RATIO(Q)
Highest at 1,483.43
PRE-TAX PROFIT(Q)
Highest at USD 182.9 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 6.15 times
DIVIDEND PER SHARE(HY)
Highest at USD 5.33
OPERATING PROFIT(Q)
Highest at USD 259.6 MM
NET PROFIT(Q)
Highest at USD 145.16 MM
-3What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 490.2 MM
RAW MATERIAL COST(Y)
Grown by 7.63% (YoY
Here's what is working for nVent Electric Plc
Net Sales
Highest at USD 1,242 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Interest Coverage Ratio
Highest at 1,483.43
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
Highest at USD 182.9 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Sales
At USD 1,242 MM has Grown at 27.61%
over average net sales of the previous four periods of USD 973.28 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 259.6 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Net Profit
Highest at USD 145.16 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Inventory Turnover Ratio
Highest at 6.15 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at USD 5.33
in the last five yearsMOJO 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 490.2 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Raw Material Cost
Grown by 7.63% (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






