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nVent Electric (NVT)
NYSE:NVT
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nVent Electric (NVT) AI Stock Analysis

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NVT

nVent Electric

(NYSE:NVT)

Rating:80Outperform
Price Target:
$103.00
â–²(13.95% Upside)
nVent Electric's overall stock score reflects strong financial performance, positive technical indicators, and a very favorable earnings call. The company's strategic initiatives and growth in key sectors bolster its outlook. However, a high P/E ratio and modest dividend yield suggest some valuation concerns. Recent corporate events further support the company's strategic positioning.
Positive Factors
Acquisitions
The acquisition of Electrical Products Group is expected to be accretive to adjusted EPS in the first year following the completion of the transaction.
Earnings
Shares increased 15% on the day of trading on solid second-quarter results, with adjusted EPS of $0.86 above consensus of $0.79, and revenue of $963 million above consensus of $908 million.
Revenue Growth
Revenue increased 30% year-over-year and 9% organically, indicating strong growth.
Negative Factors
Operational Efficiency
EPG's adjusted EBITDA margin is about 250 basis points below nVent's corporate average before synergies.

nVent Electric (NVT) vs. SPDR S&P 500 ETF (SPY)

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:Aug 01, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
The earnings call was generally positive, highlighting strong financial performance, successful acquisitions, and significant growth in key verticals, particularly in data centers and infrastructure. However, challenges such as the impact of tariffs and underperformance in the industrial and energy segments were noted.
Q2-2025 Updates
Positive Updates
Record-Breaking Results
nVent delivered record sales and adjusted EPS in the second quarter, with sales up 30% and organic sales up 9%. Adjusted EPS grew by 28%.
Strong Performance in Key Verticals
Infrastructure led the way with organic sales up over 20%, driven by data centers and power utilities. Commercial residential sales grew mid-single digits.
Successful Acquisitions
The Trachte and Electrical Products Group acquisitions contributed significantly to growth, adding $153 million to sales.
Growth in Data Center Segment
There was strong growth in the data solutions business, supported by the AI build-out, leading to record orders and backlog.
Improved Guidance
nVent raised its full-year sales and adjusted EPS guidance, with expected sales growth of 24% to 26% and adjusted EPS growth of 29% to 33%.
Robust Free Cash Flow
The company generated robust free cash flow of $74 million in the second quarter.
Increased Investment in Growth
nVent is investing in growth through R&D and CapEx, with a focus on data solutions and recent acquisitions.
Negative Updates
Impact of Tariffs
Inflation was more than $35 million, including approximately $15 million in tariff impact, affecting return on sales.
Challenges in Industrial and Energy Segments
Industrial sales were down slightly, and energy sales were down mid-single digits.
Company Guidance
During nVent's second quarter 2025 earnings call, the company reported record results with sales growing 30% from the previous year to $963 million, and organic sales increasing by 9%. The company's adjusted EPS rose 28% to $0.86, exceeding guidance. nVent's infrastructure vertical led growth with sales up over 20%, particularly in data centers and power utilities. Acquisitions, including Trachte and the Electrical Products Group (EPG), contributed 21 points to sales growth and have strengthened the company's presence in the high-growth infrastructure sector. The company's backlog increased more than fourfold from a year ago, driven by strong orders and growth in the data solutions business. nVent raised its full-year sales growth guidance to 24%-26% and adjusted EPS to $3.22-$3.30, reflecting increased expectations in data centers and power utilities. The company also highlighted its strong balance sheet and continued investment in growth initiatives, including launching 50 new products in the first half of the year.

nVent Electric Financial Statement Overview

Summary
nVent Electric demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is stable, with improved leverage and strong equity support. While cash flow generation shows some decline, the company maintains effective cash management practices. Continued focus on operational efficiency and cash flow improvement could further enhance financial performance.
Income Statement
85
Very Positive
nVent Electric shows strong revenue growth with a 2.57% increase in the TTM period, following a slight decline in the previous year. The company maintains healthy profitability with a net profit margin of 17.72% and a gross profit margin of 39.20%. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, indicating some pressure on operational efficiency.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.50, showing improved leverage compared to previous years. Return on equity stands at 17.16%, indicating efficient use of equity to generate profits. The equity ratio is strong, suggesting a solid asset base supported by equity.
Cash Flow
72
Positive
Cash flow analysis reveals a decline in free cash flow growth by 6.63% in the TTM period, which could be a concern. However, the operating cash flow to net income ratio is 0.65, indicating decent cash generation relative to net income. The free cash flow to net income ratio remains robust at 0.86, suggesting effective cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.31B3.01B2.67B2.30B2.46B2.00B
Gross Profit1.30B1.21B1.08B822.90M941.90M749.40M
EBITDA718.60M681.20M567.90M453.90M461.40M129.50M
Net Income585.90M331.80M567.10M399.80M272.90M-47.20M
Balance Sheet
Total Assets6.74B6.73B6.16B4.90B4.67B4.37B
Cash, Cash Equivalents and Short-Term Investments125.80M131.20M185.10M297.50M49.50M122.50M
Total Debt1.90B2.27B1.89B1.16B1.08B997.90M
Total Liabilities3.22B3.50B3.02B2.17B2.18B1.96B
Stockholders Equity3.52B3.24B3.14B2.73B2.50B2.41B
Cash Flow
Free Cash Flow499.80M427.00M457.10M348.70M333.80M304.00M
Operating Cash Flow579.90M501.00M528.10M394.60M373.30M344.00M
Investing Cash Flow-147.50M-758.40M-1.16B-52.50M-274.00M-65.00M
Financing Cash Flow-487.30M146.20M516.70M-82.10M-166.80M-272.50M

nVent Electric Technical Analysis

Technical Analysis Sentiment
Positive
Last Price90.39
Price Trends
50DMA
81.11
Positive
100DMA
71.00
Positive
200DMA
68.47
Positive
Market Momentum
MACD
2.82
Positive
RSI
61.23
Neutral
STOCH
82.37
Negative
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 90.39 is above the 20-day moving average (MA) of 89.76, above the 50-day MA of 81.11, and above the 200-day MA of 68.47, indicating a bullish trend. The MACD of 2.82 indicates Positive momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 82.37 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$14.55B25.727.53%0.87%-4.84%2.33%
80
Outperform
$3.85B11.7119.13%0.94%3.73%32.29%
78
Outperform
$22.90B27.9825.34%1.23%0.95%13.74%
75
Outperform
$5.64B67.917.04%0.27%8.49%-7.65%
69
Neutral
$10.00B25.7216.60%0.20%9.16%4.09%
65
Neutral
$1.96B18.687.29%2.23%-12.09%-78.18%
64
Neutral
$10.74B15.868.16%1.99%2.70%-15.17%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVT
nVent Electric
90.39
27.76
44.32%
AYI
Acuity Brands
326.47
80.95
32.97%
AEIS
Advanced Energy
149.68
51.15
51.91%
ENS
EnerSys
102.65
5.15
5.28%
HUBB
Hubbell B
430.99
56.83
15.19%
ATKR
Atkore International Group
58.19
-28.60
-32.95%

nVent Electric Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
nVent Electric Expands Board with New Appointment
Positive
Jul 17, 2025

On July 17, 2025, nVent Electric plc expanded its board of directors to ten members by appointing Diane Leopold as a new director and member of the Audit and Finance Committee. This strategic move is anticipated to enhance the company’s governance and financial oversight, potentially strengthening its position in the market.

Executive/Board Changes
nVent Electric Announces Executive Retirement Plans
Neutral
Jul 17, 2025

On July 11, 2025, nVent Electric announced that Jon D. Lammers, their Executive Vice President, General Counsel, and Secretary, plans to retire on April 1, 2026. The company will begin searching for his replacement, indicating a forthcoming change in their executive team.

Private Placements and FinancingBusiness Operations and Strategy
nVent Electric Secures New Credit Agreement
Positive
Jun 30, 2025

On June 30, 2025, nVent Electric plc and its subsidiaries entered into a Second Amended and Restated Credit Agreement with a syndicate of banks, establishing a five-year $275 million senior unsecured term loan facility and a $600 million revolving credit facility. This agreement, which amends a previous credit agreement from September 2021, aims to enhance nVent’s financial flexibility by consolidating existing loans and supporting general corporate purposes. The facilities are set to mature on June 30, 2030, and include financial covenants to maintain specific leverage and interest coverage ratios, reflecting nVent’s strategic focus on maintaining financial stability and operational flexibility.

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.Date of analysis: Aug 19, 2025