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

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nVent Electric

(NYSE:NVT)

Rating:79Outperform
Price Target:
$88.00
â–²(17.40%Upside)
nVent Electric achieves a well-balanced score driven by strong financial performance and positive earnings call sentiment. Technical analysis indicates bullish trends but warns of potential short-term corrections due to overbought signals. Valuation and corporate events further support the company's solid market position.
Positive Factors
Acquisitions and Growth
The acquisition of Electrical Products Group is expected to be accretive to adjusted EPS in the first year following the completion of the transaction.
Financial Performance
The company reported double-digit growth in orders, revenue, adjusted EPS, and free cash flow.
Investor Relations
NVent's leadership team, including the CEO and CFO, was actively engaged at a major growth stock conference, showcasing their commitment to investor relations.
Negative Factors
Market Concerns
The negative narrative around curtailed spending by Datacenters on less expensive AI is overdone.
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 makes money through the sale of its wide range of electrical products and solutions. The company's primary revenue streams include sales of electrical enclosures, which protect sensitive electronic and electrical components, electrical fastening systems used for securing and managing electrical connections, and thermal management solutions that ensure optimal operating temperatures for electrical systems. nVent serves a diverse customer base across industries such as construction, energy, and telecommunications, leveraging its global distribution network and strategic partnerships to drive sales. Additionally, the company benefits from ongoing demand for infrastructure development and energy efficiency improvements, which contribute to its earnings.

nVent Electric Earnings Call Summary

Earnings Call Date:May 02, 2025
(Q1-2025)
|
% Change Since: 33.29%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Positive
The earnings call revealed a strong start to the year with significant growth in key areas like Data Solutions and successful acquisitions enhancing the portfolio. However, challenges such as tariff impacts and variability in geographical sales were noted. Overall, the positive aspects outweighed the negative, reflecting a confident outlook for the company.
Q1-2025 Updates
Positive Updates
Strong Q1 Performance
nVent reported double-digit growth in orders, sales, adjusted EPS, and free cash flow. Sales were up 11%, and adjusted EPS grew 10%.
Data Solutions Growth
Data Solutions experienced strong double-digit growth, contributing significantly to the overall positive performance.
Acquisition of Avail Electrical Products Group
The acquisition of Avail Electrical Products Group is expected to contribute $0.05 to EPS and supports growth in Power Utilities and Data Centers.
Raised Full-Year Guidance
nVent raised its full-year reported sales growth guidance to 19%-21% and adjusted EPS guidance to $3.03-$3.13.
Successful Portfolio Transformation
The divestiture of Thermal Management and acquisitions have positioned nVent as a higher-growth electrical company, with infrastructure now the largest vertical.
Negative Updates
Tariff Impact
Tariffs are expected to have a $120 million impact, requiring mitigating actions like pricing and productivity improvements.
Commercial Resi Performance
Commercial residential sales declined low-single-digits, contributing to a slightly negative performance in certain segments.
Geographical Sales Variability
While Asia-Pacific grew in the high-teens, Europe was slightly down, and the Americas showed mixed results with some declines.
Company Guidance
During the nVent Electric First Quarter 2025 Earnings Conference Call, the company provided guidance and key metrics for the upcoming fiscal periods. Sales for Q1 2025 were $809 million, marking an 11% increase, with a 2% organic growth. This growth was mainly driven by the infrastructure vertical, with new products contributing over two points to sales growth, while acquisitions added 10 points to growth. Adjusted operating income grew by 4% with a return on sales of 20%, and adjusted EPS increased by 10% to $0.67. Free cash flow saw a 32% rise, reaching $44 million. For the full year, nVent raised its reported sales growth guidance to 19%-21% and organic sales growth to 5%-7%. They anticipate adjusted EPS to be between $3.03 and $3.13, factoring in a $120 million impact from tariffs. Capital expenditure forecast was increased to $100 million, reflecting data solutions capacity and supply chain resiliency investments. The second quarter outlook suggests a 22%-24% growth in reported sales, with organic sales expected to rise by 4%-6%. The guidance reflects strong anticipated performance in Data Solutions and Power Utilities, alongside the recent acquisition of Avail Electrical Products Group.

nVent Electric Financial Statement Overview

Summary
nVent Electric exhibits a strong financial position with robust profitability and growth metrics. The company maintains a solid balance sheet with manageable leverage and strong equity backing. Cash flows are healthy, supporting ongoing operations and growth. While the company shows impressive performance, attention should be given to fluctuations in revenue and debt levels.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.01B3.26B2.91B2.46B2.00B
Gross Profit1.21B1.34B1.10B941.90M749.40M
EBITDA681.20M720.30M618.00M484.60M370.90M
Net Income331.80M567.10M399.80M272.90M-47.20M
Balance Sheet
Total Assets6.73B6.16B4.90B4.67B4.37B
Cash, Cash Equivalents and Short-Term Investments131.20M185.10M297.50M49.50M122.50M
Total Debt2.27B1.90B1.08B999.20M948.00M
Total Liabilities3.50B3.02B2.17B2.18B1.96B
Stockholders Equity3.24B3.14B2.73B2.50B2.41B
Cash Flow
Free Cash Flow427.00M457.10M348.70M333.80M304.00M
Operating Cash Flow501.00M528.10M394.60M373.30M344.00M
Investing Cash Flow-758.40M-1.16B-52.50M-274.00M-65.00M
Financing Cash Flow146.20M516.70M-82.10M-166.80M-272.50M

nVent Electric Technical Analysis

Technical Analysis Sentiment
Positive
Last Price74.96
Price Trends
50DMA
69.59
Positive
100DMA
61.81
Positive
200DMA
66.39
Positive
Market Momentum
MACD
1.93
Positive
RSI
60.88
Neutral
STOCH
81.04
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 74.96 is above the 20-day moving average (MA) of 73.87, above the 50-day MA of 69.59, and above the 200-day MA of 66.39, indicating a bullish trend. The MACD of 1.93 indicates Positive momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 81.04 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
NVNVT
79
Outperform
$12.50B21.687.63%1.05%-5.12%1.69%
ENENS
79
Outperform
$3.42B9.8619.82%1.34%1.00%38.51%
77
Outperform
$2.75B16.0537.08%0.48%27.43%67.93%
76
Outperform
$5.39B74.026.36%0.35%0.06%-28.32%
74
Outperform
$2.50B14.3012.73%1.77%-12.02%-67.69%
AYAYI
69
Neutral
$8.97B23.0616.60%0.28%9.16%4.09%
66
Neutral
$2.64B13.699.94%4.77%-2.21%31.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVT
nVent Electric
74.96
-1.73
-2.26%
AYI
Acuity Brands
290.53
33.53
13.05%
AEIS
Advanced Energy
142.66
29.66
26.25%
ENS
EnerSys
88.59
-20.48
-18.78%
POWL
Powell Industries
220.91
80.59
57.43%
ATKR
Atkore International Group
72.99
-69.70
-48.85%

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: Jul 18, 2025