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

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NVT

nVent Electric

(NYSE:NVT)

Rating:77Outperform
Price Target:
$101.00
▲(13.79% Upside)
nVent Electric's overall stock score is driven by strong financial performance and a positive earnings outlook, supported by strategic acquisitions and robust sales growth. Technical indicators suggest caution due to overbought conditions, and valuation metrics indicate potential overvaluation. Recent corporate events further bolster the company's strategic position.
Positive Factors
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.
Strategic 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.
Negative Factors
Market Concerns
The negative narrative around curtailed spending by Datacenters on less expensive AI is overdone.
Profit Margins
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: 13.19%|
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with record-breaking sales and backlog, driven by successful acquisitions and growth in data solutions. Despite challenges from inflation and tariffs, the company's strategic focus and increased guidance suggest a positive outlook.
Q2-2025 Updates
Positive Updates
Record-Breaking Sales and Backlog
Sales were up 30% and 9% organically, with a record backlog increasing more than fourfold compared to a year ago.
Strong Performance in Data Solutions
Organic orders in the data solutions business accelerated by over 20%, with significant growth related to AI build-out.
Successful Acquisitions
The Trachte and Electrical Products Group acquisitions performed better than expected, contributing 32 points to sales growth in the Systems Protection segment.
Geographic Sales Growth
Sales grew across all key geographic regions: Americas up 9%, Europe up 10%, and Asia Pacific up low single digits.
Increased Guidance for 2025
Full year sales growth guidance raised to 24% to 26%, with adjusted EPS guidance increased to reflect strong performance.
Negative Updates
Inflation and Tariff Impact
Inflation exceeded $35 million, including approximately $15 million in tariff impact.
Decline in Industrial and Energy Sales
Industrial sales were down slightly, and energy sales declined mid-single digits.
Challenges in Return on Sales
Return on sales decreased year-over-year in both Systems Protection and Electrical Connections segments due to inflation, acquisitions, and growth investments.
Company Guidance
During nVent's Second Quarter 2025 Earnings Conference Call, the company reported record-breaking results, significantly exceeding their guidance for both sales and adjusted EPS. Sales increased by 30%, with a 9% organic growth, largely driven by the infrastructure vertical, which saw over 20% organic sales growth. The company launched 50 new products in the first half, contributing over 3 points to sales growth. Adjusted operating income rose by 18%, with a return on sales close to 21%, and adjusted EPS climbed 28%. The backlog grew more than fourfold compared to the previous year, driven by strong double-digit growth in the data solutions business and acquisitions such as Trachte and the Electrical Products Group (EPG). For the full year, nVent raised its sales growth guidance to 24%-26% and adjusted EPS to $3.22-$3.30, reflecting robust performance expectations in data centers and power utilities. The company anticipates organic sales growth of 8%-10%, supported by both volume and price, and targets a free cash flow conversion of 90%-95%.

nVent Electric Financial Statement Overview

Summary
nVent Electric exhibits a strong financial position with robust profitability and growth metrics. The income statement highlights high profitability with a net profit margin of 18.2% and revenue growth of 7.3%. The balance sheet is stable with a moderate debt-to-equity ratio of 0.49 and a strong cash flow performance with a 25.4% growth in free cash flow.
Income Statement
88
Very Positive
The income statement shows strong profitability with a TTM gross profit margin of approximately 40.1% and a net profit margin of about 18.2%. The revenue growth rate from 2024 to TTM is around 7.3%, indicating healthy growth. Strong EBIT and EBITDA margins further emphasize operational efficiency. However, revenue fluctuations in prior years highlight some volatility.
Balance Sheet
82
Very Positive
The balance sheet is robust with a debt-to-equity ratio of 0.49 in TTM, indicating moderate leverage. Return on Equity (ROE) stands at 16.2% for TTM, reflecting good profitability. The equity ratio is at 53.8%, suggesting solid financial stability. However, attention should be given to the increase in total debt over the years.
Cash Flow
85
Very Positive
Cash flow analysis reveals strong free cash flow growth of 25.4% from 2024 to TTM. Operating cash flow to net income ratio is 1.05, showing efficient cash generation. The free cash flow to net income ratio at 0.91 underscores solid cash availability. While cash flows are robust, fluctuations in investing and financing cash flows warrant monitoring.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.31B3.01B3.26B2.91B2.46B2.00B
Gross Profit1.30B1.21B1.34B1.10B941.90M749.40M
EBITDA615.10M681.20M720.30M618.00M484.60M370.90M
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 Debt1.77B2.27B1.90B1.08B999.20M948.00M
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 Price88.76
Price Trends
50DMA
74.91
Positive
100DMA
65.89
Positive
200DMA
67.29
Positive
Market Momentum
MACD
4.50
Negative
RSI
74.81
Negative
STOCH
80.00
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 88.76 is above the 20-day moving average (MA) of 81.31, above the 50-day MA of 74.91, and above the 200-day MA of 67.29, indicating a bullish trend. The MACD of 4.50 indicates Negative momentum. The RSI at 74.81 is Negative, neither overbought nor oversold. The STOCH value of 80.00 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 (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$3.57B10.8819.13%1.01%3.73%32.29%
78
Outperform
$2.94B16.9334.00%0.40%14.32%33.76%
77
Outperform
$14.29B25.267.53%0.89%-4.84%2.33%
71
Outperform
¥266.16B14.978.32%2.80%6.19%10.81%
70
Neutral
$5.68B68.437.04%0.26%8.49%-7.65%
69
Neutral
$9.60B24.6816.60%0.21%9.16%4.09%
58
Neutral
$1.85B17.657.29%2.40%-12.09%-78.18%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVT
nVent Electric
88.76
26.03
41.50%
AYI
Acuity Brands
313.21
81.34
35.08%
AEIS
Advanced Energy
151.61
49.62
48.65%
ENS
EnerSys
95.39
0.52
0.55%
POWL
Powell Industries
264.83
103.55
64.21%
ATKR
Atkore International Group
53.85
-39.23
-42.15%

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.

The most recent analyst rating on (NVT) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on nVent Electric stock, see the NVT Stock Forecast page.

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.

The most recent analyst rating on (NVT) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on nVent Electric stock, see the NVT Stock Forecast page.

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.

The most recent analyst rating on (NVT) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on nVent Electric stock, see the NVT Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
nVent Electric Holds Annual General Meeting
Neutral
May 16, 2025

On May 16, 2025, nVent Electric plc held its annual general meeting where shareholders voted on several key proposals. All nine director nominees were elected for one-year terms, and the compensation of named executive officers was approved. Additionally, the appointment of Deloitte & Touche LLP as the independent auditor was ratified, and the board was authorized to allot new shares and opt out of statutory preemption rights under Irish law. These decisions reflect the company’s ongoing efforts to align its governance and financial strategies with shareholder interests.

The most recent analyst rating on (NVT) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on nVent Electric stock, see the NVT Stock Forecast page.

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 11, 2025