nVent Electric (NVT) AI Stock Analysis

• Market Cap: $15.93B
• Dividend Yield: 0.8%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 28.2
• Beta (1Y): 1.74
• Revenue Growth: -4.84%
• EPS Growth: 2.33%
• Country: US
• Employees: 12,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.86
• Shares Outstanding: 160,947,300
• 10 Day Avg. Volume: 1,868,036
• 30 Day Avg. Volume: 1,718,295
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 4.16
• Enterprise Value/Gross Profit: 10.61
• Enterprise Value/Ebitda: 19.14
• 1Y Price Target: $96.63
• Price Target Upside: -2.38% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 80 Outperform
• Price Target: $103.00 ▲(4.05% 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

Revenue Growth

The significant revenue growth, driven by strong performance in infrastructure and data centers, underscores nVent's expanding market reach and product demand, indicating a robust business model.

Successful Acquisitions

Strategic acquisitions like Trachte and EPG have bolstered nVent's market position, enhancing its product offerings and driving growth in high-demand sectors like infrastructure.

Financial Flexibility

The new credit agreement enhances nVent's financial flexibility, allowing for strategic investments and operational stability, which supports long-term growth initiatives.

Negative Factors

Decline in Cash Flow

A decline in free cash flow growth could limit nVent's ability to reinvest in business operations and manage debt, potentially impacting long-term financial health.

Tariff Impact

Tariff-related costs can erode profit margins, posing a challenge to maintaining operational efficiency and profitability in the long term.

Challenges in Industrial and Energy Segments

Underperformance in industrial and energy segments indicates potential market challenges, which could hinder overall growth and diversification efforts.

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. 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 Money

nVent 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.31B	3.01B	2.67B	2.30B	2.46B	2.00B
Gross Profit	1.30B	1.21B	1.08B	822.90M	941.90M	749.40M
EBITDA	718.60M	681.20M	567.90M	453.90M	461.40M	129.50M
Net Income	585.90M	331.80M	567.10M	399.80M	272.90M	-47.20M
Balance Sheet
Total Assets	6.74B	6.73B	6.16B	4.90B	4.67B	4.37B
Cash, Cash Equivalents and Short-Term Investments	125.80M	131.20M	185.10M	297.50M	49.50M	122.50M
Total Debt	1.90B	2.27B	1.89B	1.16B	1.08B	997.90M
Total Liabilities	3.22B	3.50B	3.02B	2.17B	2.18B	1.96B
Stockholders Equity	3.52B	3.24B	3.14B	2.73B	2.50B	2.41B
Cash Flow
Free Cash Flow	499.80M	427.00M	457.10M	348.70M	333.80M	304.00M
Operating Cash Flow	579.90M	501.00M	528.10M	394.60M	373.30M	344.00M
Investing Cash Flow	-147.50M	-758.40M	-1.16B	-52.50M	-274.00M	-65.00M
Financing Cash Flow	-487.30M	146.20M	516.70M	-82.10M	-166.80M	-272.50M

nVent Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 98.99 is above the 20-day moving average (MA) of 93.21, above the 50-day MA of 87.08, and above the 200-day MA of 69.78, indicating a bullish trend. The MACD of 3.05 indicates Negative momentum. The RSI at 73.26 is Negative, neither overbought nor oversold. The STOCH value of 90.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVT.

nVent Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVT	80 Outperform	$15.93B	28.17	7.53%	0.80%	-4.84%	2.33%
ENS	80 Outperform	4.12B	12.55	18.85%	0.89%	3.73%	32.29%
HUBB	78 Outperform	23.46B	28.66	23.81%	1.20%	0.95%	13.74%
AYI	75 Outperform	10.32B	26.53	15.54%	0.20%	9.16%	4.09%
AEIS	69 Neutral	6.57B	79.11	6.67%	0.23%	8.49%	-7.65%
ATKR	65 Neutral	2.03B	19.36	7.67%	2.16%	-12.09%	-78.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

nVent Electric Corporate Events

nVent Electric Expands Board with New Appointment

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.

nVent Electric Announces Executive Retirement Plans

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.

nVent Electric Secures New Credit Agreement

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.