Nvent Electric (NVT)
NYSE:NVT
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nVent Electric
(NYSE:NVT)
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Rating:78Outperform
Price Target:
$193.00
â–²(43.29% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by strong technical momentum and a very upbeat earnings outlook with raised guidance and strong backlog visibility. Financial performance is solid (growth, ROE, improved leverage) but is held back by weaker recent net margins and soft cash conversion. Valuation is a meaningful headwind due to the high P/E and low dividend yield.
Positive Factors
Strong Revenue & Backlog
Record quarterly sales and a $2.6B backlog provide multi-quarter revenue visibility and support sustainable top-line growth. A large backlog underpins production planning, capacity utilization and near-term cash flows, reducing execution risk versus purely spot demand.
Negative Factors
Compressed Net Margins
Net margin contraction reflects weaker earnings conversion despite higher sales, driven by inflation, tariffs and segment margin pressure. Sustained margin compression would reduce free cash generation and return on invested capital unless pricing and productivity fully offset cost headwinds.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue & Backlog
Record quarterly sales and a $2.6B backlog provide multi-quarter revenue visibility and support sustainable top-line growth. A large backlog underpins production planning, capacity utilization and near-term cash flows, reducing execution risk versus purely spot demand.
Read all positive factors
nVent Electric (NVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.45B
Dividend Yield0.84%
Average Volume (3M)2.24M
Price to Earnings (P/E)34.0
Beta (1Y)1.65
Revenue Growth34.18%
EPS Growth-15.12%
CountryUS
Employees12,100
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)3.04
Shares Outstanding161,720,460
10 Day Avg. Volume1,870,168
30 Day Avg. Volume2,235,925
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)4.44
Price to Sales (P/S)4.25
P/FCF Ratio44.53
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue6.50
Enterprise Value/Gross Profit17.57
Enterprise Value/Ebitda30.53
Forecast
1Y Price Target
$181.83Price Target Upside35.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)4.57
Revenue Forecast (FY)$4.97B
nVent Electric Business Overview & Revenue Model
Company Description
nVent 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. T...
How the Company Makes Money
nVent makes money primarily by selling engineered electrical connection and protection products and systems, with revenue recognized largely from product sales to OEMs, contractors, distributors, and end users. Key revenue streams include: (1) Ele...
nVent Electric Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call was strongly positive: the company delivered record top-line and bottom-line results, materially raised full-year and Q2 guidance, and reported robust orders and backlog—largely driven by Infrastructure and data-center demand (notably liquid cooling). Financial position and capital allocation remain disciplined with strong liquidity and low leverage. Key headwinds include tariff and inflation pressures (notably copper), margin pressure in the Electrical Connections segment, Asia Pacific weakness, and the near-term challenges of ramping new capacity and supply-base scaling. On balance, the positive operational momentum, guidance raises, and cash/balance-sheet strength significantly outweigh the transitory margin and macro headwinds.Positive Updates
Record Sales, Orders and Backlog
Q1 reported sales $1.242B, up 53% year-over-year; organic sales +34%. Third consecutive quarter with sales >$1B. Organic orders up ~40%; backlog grew sequentially to $2.6B (up low double digits), providing multi-quarter visibility.
Negative Updates
Tariff and Inflation Headwinds
Incremental tariff headwind of approximately $80M expected this year (following $90M last year for $170M cumulative). Company noted inflation pressures (fuel, copper) and reported Q1 inflation impact of nearly $60M (including ~$40M tariff impact). Management is relying on pricing and productivity to offset these headwinds.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Sales, Orders and Backlog
Q1 reported sales $1.242B, up 53% year-over-year; organic sales +34%. Third consecutive quarter with sales >$1B. Organic orders up ~40%; backlog grew sequentially to $2.6B (up low double digits), providing multi-quarter visibility.
Read all positive updates
Company Guidance
Management raised full‑year guidance, now forecasting reported sales growth of 26%–28% (including ~5 points from acquisitions and flattish FX) with organic sales up 21%–23% (vs prior 10%–13%), and increased full‑year adjusted EPS to $4.45–$4.55 (from $4.00–$4.15) while assuming approximately $80M of incremental tariff headwinds; they expect free cash flow conversion of 90%–95%, plan ~ $130M in CapEx (up ~40%) with Q2 guidance of reported sales +28%–30% (organic +23%–25%, ~5 points from acquisitions) and adjusted EPS of $1.12–$1.15 (midpoint >30% YoY); liquidity and balance‑sheet metrics cited to support the plan include $109M cash, $600M available on the revolver, $1.6B of debt, net leverage of 1.5x (well below the 2.0–2.5x target), and a $2.6B backlog.nVent Electric Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
73
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.33B | 3.89B | 3.01B | 2.67B | 2.30B | 2.46B |
| Gross Profit | 1.60B | 1.47B | 1.21B | 1.08B | 822.90M | 941.90M |
| EBITDA | 921.50M | 832.80M | 681.20M | 567.90M | 453.90M | 461.40M |
| Net Income | 490.20M | 710.20M | 331.80M | 567.10M | 399.80M | 272.90M |
Balance Sheet | ||||||
| Total Assets | 6.96B | 6.85B | 6.73B | 6.16B | 4.90B | 4.67B |
| Cash, Cash Equivalents and Short-Term Investments | 190.00M | 237.50M | 131.20M | 185.10M | 297.50M | 49.50M |
| Total Debt | 1.70B | 1.71B | 2.27B | 1.89B | 1.16B | 1.08B |
| Total Liabilities | 3.17B | 3.12B | 3.50B | 3.02B | 2.17B | 2.18B |
| Stockholders Equity | 3.80B | 3.73B | 3.24B | 3.14B | 2.73B | 2.50B |
Cash Flow | ||||||
| Free Cash Flow | 381.90M | 371.90M | 569.10M | 462.50M | 348.70M | 333.80M |
| Operating Cash Flow | 490.20M | 465.20M | 643.10M | 528.10M | 394.60M | 373.30M |
| Investing Cash Flow | -1.08B | 520.80M | -758.40M | -1.16B | -52.50M | -274.00M |
| Financing Cash Flow | -584.00M | -968.40M | 146.20M | 516.70M | -82.10M | -166.80M |
nVent Electric Technical Analysis
Positive
134.69
Price Trends
139.71
Positive
125.67
Positive
112.47
Positive
Market Momentum
7.33
Positive
60.01
Neutral
49.56
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 134.69 is below the 20-day moving average (MA) of 161.47, below the 50-day MA of 139.71, and above the 200-day MA of 112.47, indicating a bullish trend. The MACD of 7.33 indicates Positive momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 49.56 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 37 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 | $8.72B | 22.16 | 15.60% | 0.67% | 3.70% | -14.17% | |
78 Outperform | $26.45B | 33.98 | 13.36% | 0.84% | 34.18% | -15.12% | |
74 Outperform | $8.52B | 23.86 | 15.71% | 0.18% | 15.89% | 3.60% | |
71 Outperform | $24.36B | 35.87 | 24.45% | 1.18% | 7.18% | 14.32% | |
64 Neutral | $12.31B | 45.53 | 14.35% | 0.18% | 22.19% | 157.87% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $2.57B | -3.97 | -8.68% | 2.02% | -3.36% | -168.34% |
* Industrials Sector Average
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nVent Electric Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
nVent Electric Shareholders Approve 2026 Governance and Proposals
Positive
May 18, 2026
nVent Electric plc held its 2026 annual general meeting of shareholders on May 15, 2026, with 86.47% of eligible ordinary shares represented. Shareholders elected nine directors to one-year terms ending at the 2027 meeting, reinforcing continuity ...
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.