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nVent Electric (NVT)
NYSE:NVT
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nVent Electric
(NYSE:NVT)
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Rating:79Outperform
Price Target:
$131.00
â–²(16.44% Upside)
nVent Electric's overall stock score is driven by strong financial performance and positive earnings call outcomes, reflecting robust growth and strategic positioning in high-demand sectors like data centers. Technical analysis suggests strong momentum, though overbought signals warrant caution. The high P/E ratio indicates a premium valuation, which may limit upside potential.
Positive Factors
Revenue Growth
Strong revenue growth driven by organic expansion and strategic focus on high-demand sectors like data centers ensures long-term market leadership and financial stability.
Cash Generation
Robust cash flow growth indicates effective cash management and operational efficiency, supporting future investments and financial resilience.
Product Innovation
Continuous product innovation enhances competitive advantage and market adaptability, driving sustained growth and customer retention.
Negative Factors
Cost Pressures
Rising inflation and tariff costs could compress margins, challenging profitability and requiring strategic cost management to maintain financial health.
Regional Sales Decline
Declining sales in Asia Pacific may signal regional market challenges, potentially impacting global revenue diversification and growth prospects.
Acquisition Impact
Recent acquisitions, while strategic, have diluted margins, necessitating integration efficiencies to realize expected synergies and enhance profitability.
nVent Electric (NVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.69B
Dividend Yield0.71%
Average Volume (3M)2.17M
Price to Earnings (P/E)30.2
Beta (1Y)1.74
Revenue Growth5.31%
EPS Growth5.76%
CountryUS
Employees12,100
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.91
Shares Outstanding161,359,540
10 Day Avg. Volume2,738,653
30 Day Avg. Volume2,165,494
Financial Highlights & Ratios
PEG Ratio-0.82
Price to Book (P/B)3.48
Price to Sales (P/S)3.75
P/FCF Ratio19.82
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue4.96
Enterprise Value/Gross Profit12.86
Enterprise Value/Ebitda28.53
Forecast
1Y Price Target
$129.71Price Target Upside15.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)3.29
Revenue Forecast (FY)$3.76B
nVent Electric Business Overview & Revenue Model
Company DescriptionnVent Electric plc designs, manufactures, markets, installs, and services electrical connection and protection products worldwide. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to connect and protect critical electronics, communication, control, and power equipment; physical infrastructure solutions to host, connect, and protect server and network equipment; and indoor and outdoor protection for test and measurement and aerospace and defense applications in industrial, infrastructure, commercial, and energy verticals. Its products also include metallic and non-metallic enclosures, cabinets, sub racks, and backplanes. The Electrical & Fastening Solutions segment offers fastening solutions to connect and protect electrical and mechanical systems, and civil structures. It also provides engineered electrical and fastening products. The Thermal Management segment offers electric thermal solutions that connect and protect buildings, infrastructure, industrial processes, and people. This segment provides thermal management systems comprising heat tracing, floor heating, fire-rated and specialty wiring, sensing, and snow melting and de-icing solutions. The company sells its products under the CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF, and TRACER brands. nVent Electric plc markets its products through electrical distributors, data center contractors, original equipment manufacturers, and maintenance contractors. It serves the energy, industrial, infrastructure, and commercial and residential sectors. The company was founded in 1903 and is based in London, the United Kingdom.
How the Company Makes MoneynVent Electric generates revenue primarily through the sale of its electrical connection and protection products. Key revenue streams include sales from its various product categories such as enclosures, busbars, and heat tracing systems, which are utilized in numerous applications across industries. Additionally, nVent benefits from recurring revenues through the provision of maintenance and support services for its solutions. The company has established significant partnerships with distributors and original equipment manufacturers (OEMs), enhancing its market reach and driving sales. Factors contributing to its earnings include a broad customer base, strong brand reputation, and ongoing investments in product development to meet evolving market demands.
nVent Electric Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record sales, significant order growth, and a positive outlook driven by infrastructure and data center demand. However, inflation and tariff challenges, as well as sales declines in Asia Pacific, presented some concerns.Q3-2025 Updates
Positive Updates
Record Sales and Adjusted EPS
For the first time, quarterly sales exceeded $1 billion, and adjusted EPS was $0.91, both surpassing guidance.
Significant Order Growth
Organic orders increased by approximately 65%, driven by large orders for AI data center buildout.
Strong Performance in Infrastructure
Infrastructure led growth with organic sales up over 40%, particularly strong in data centers and power utilities.
Expansion and New Product Launches
66 new products launched year-to-date, contributing over 5 points to sales growth, with investments in four facilities to support data center and power utility growth.
Robust Cash Flow
Free cash flow was $253 million, up 77% year-over-year.
Improved Full-Year Outlook
Full-year sales and adjusted EPS guidance raised, with expected reported sales growth of 27% to 28%.
Negative Updates
Inflation and Tariff Challenges
Inflation impacted results with more than $45 million in costs, including nearly $30 million from tariffs.
Asia Pacific Sales Decline
Asia Pacific sales were down low single digits.
Impact of Recent Acquisitions
Acquisitions were margin dilutive, impacting return on sales.
Company Guidance
During the nVent Third Quarter 2025 Earnings Call, the company provided robust guidance reflecting impressive performance metrics. nVent reported record quarterly sales exceeding $1 billion and adjusted EPS of $0.91, both surpassing prior guidance. Organic orders surged approximately 65%, driven by substantial AI data center buildout orders, while excluding data centers, organic orders grew in the high single digits. Overall sales increased by 35%, with 16% organic growth, and adjusted EPS rose by 44%. The company's third-quarter segment income was $213 million, with a return on sales of 20.2%. nVent raised its full-year sales and adjusted EPS guidance, projecting reported sales growth of 27% to 28%, including 10% to 11% organic growth, and adjusted EPS of $3.31 to $3.33. The company also noted strong free cash flow of $253 million, up 77% year-over-year, and emphasized continued investment in growth areas such as data centers and power utilities.nVent Electric Financial Statement Overview
Summary
nVent Electric demonstrates strong financial performance with robust revenue growth, solid profitability, and effective cash flow management. The company has improved its leverage position, enhancing financial stability. While cost pressures are evident, the overall outlook remains positive, supported by efficient operations and a strong capital structure.Income Statement
nVent Electric shows strong revenue growth with an 8.23% increase in TTM, supported by a solid net profit margin of 16.83%. The company maintains a healthy gross profit margin of 38.55% and a robust EBIT margin of 11.54%. However, the slight decline in gross profit margin from previous years indicates potential cost pressures.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.44, improved from 0.70 in the previous year. Return on equity is strong at 17.20%, indicating efficient use of equity. The equity ratio stands at 53.65%, suggesting a solid capital structure. However, the company should monitor its debt levels to maintain financial flexibility.78
Positive
Cash Flow
The cash flow statement highlights a significant 47.41% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.08, and the free cash flow to net income ratio is 0.87, reflecting efficient cash conversion. Continued focus on cash flow management will be crucial for sustaining growth.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.58B | 3.01B | 2.67B | 2.30B | 2.46B | 2.00B |
| Gross Profit | 1.38B | 1.21B | 1.08B | 822.90M | 941.90M | 749.40M |
| EBITDA | 621.80M | 681.20M | 567.90M | 453.90M | 461.40M | 129.50M |
| Net Income | 602.10M | 331.80M | 567.10M | 399.80M | 272.90M | -47.20M |
Balance Sheet | ||||||
| Total Assets | 6.77B | 6.73B | 6.16B | 4.90B | 4.67B | 4.37B |
| Cash, Cash Equivalents and Short-Term Investments | 126.90M | 131.20M | 185.10M | 297.50M | 49.50M | 122.50M |
| Total Debt | 1.73B | 2.27B | 1.89B | 1.16B | 1.08B | 997.90M |
| Total Liabilities | 3.14B | 3.50B | 3.02B | 2.17B | 2.18B | 1.96B |
| Stockholders Equity | 3.63B | 3.24B | 3.14B | 2.73B | 2.50B | 2.41B |
Cash Flow | ||||||
| Free Cash Flow | 404.30M | 569.10M | 462.50M | 348.70M | 333.80M | 304.00M |
| Operating Cash Flow | 487.40M | 643.10M | 528.10M | 394.60M | 373.30M | 344.00M |
| Investing Cash Flow | 526.60M | -758.40M | -1.16B | -52.50M | -274.00M | -65.00M |
| Financing Cash Flow | -1.04B | 146.20M | 516.70M | -82.10M | -166.80M | -272.50M |
nVent Electric Technical Analysis
Positive
112.50
Price Trends
98.44
Positive
89.06
Positive
74.51
Positive
Market Momentum
3.85
Negative
66.90
Neutral
68.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVT, the sentiment is Positive. The current price of 112.5 is above the 20-day moving average (MA) of 102.99, above the 50-day MA of 98.44, and above the 200-day MA of 74.51, indicating a bullish trend. The MACD of 3.85 indicates Negative momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 68.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVT.
nVent Electric Risk Analysis
nVent Electric disclosed 35 risk factors in its most recent earnings report. nVent Electric reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
nVent Electric Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.61B | 14.04 | 19.13% | 0.77% | 3.73% | 32.29% | |
79 Outperform | $17.69B | 30.20 | 8.57% | 0.71% | 5.31% | 5.76% | |
79 Outperform | $24.42B | 28.49 | 25.08% | 1.22% | 0.82% | 16.05% | |
77 Outperform | $11.06B | 28.82 | 15.54% | 0.19% | 13.14% | -6.09% | |
77 Outperform | $7.34B | 88.50 | 11.80% | 0.20% | 17.18% | 235.76% | |
73 Outperform | $2.30B | 21.96 | 7.29% | 1.90% | -12.09% | -78.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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nVent Electric
112.50
36.28
47.60%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.