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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Amphenol Corp.

Vicor Corp.

Corning, Inc.

TTM Technologies, Inc.

Knowles Corp.

Bel Fuse, Inc.

nVent Electric Plc

Jabil, Inc.

RxSight, Inc.

Camtek Ltd.

Methode Electronics, 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 36.72%, its profits have fallen by -52.8%

Consistent Returns over the last 3 years

Along with generating 36.72% 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 hold?

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

36.72%

0.87

44.16%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.56%

EBIT Growth (5y)

13.47%

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

39.03%

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

3.10

EV to EBIT

20.26

EV to EBITDA

15.89

EV to Capital Employed

2.87

EV to Sales

3.61

PEG Ratio

Dividend Yield

86.15%

ROCE (Latest)

14.15%

ROE (Latest)

7.88%

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

No Trend

OBV

No Trend

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,211.36

CASH AND EQV(HY)

Highest at USD 1,468.8 MM

DIVIDEND PER SHARE(HY)

Highest at USD 4.43

NET SALES(Q)

Highest at USD 963.1 MM

OPERATING PROFIT(Q)

Highest at USD 213.2 MM

NET PROFIT(Q)

At USD 111.49 MM has Grown at 68.33%

-10What is not working for the Company

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%

RAW MATERIAL COST(Y)

Grown by 7.34% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.43 times

Here's what is working for nVent Electric Plc

Interest Coverage Ratio

Highest at 1,211.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 963.1 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 963.1 MM has Grown at 19.5%

over average net sales of the previous four periods of USD 805.95 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 213.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Net Profit

At USD 111.49 MM has Grown at 68.33%

over average net sales of the previous four periods of USD 66.23 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 1,468.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 4.43

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 50.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for nVent Electric Plc

Operating Cash Flow

Lowest at USD 468.3 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Lowest at 4.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.34% (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