nVent Electric (NVT) AI Stock Analysis

• Market Cap: $12.08B
• Dividend Yield: 1.09%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.86
• Revenue Growth: -5.12%
• EPS Growth: 1.69%
• Country: US
• Employees: 12,100
• Sector: Industrials
• Sector Strength: 86
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.67
• Shares Outstanding: 164,635,760
• 10 Day Avg. Volume: 1,612,180
• 30 Day Avg. Volume: 1,556,392
• PEG Ratio: 0.34
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.35
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 2.42
• 1Y Price Target: $72.40
• Price Target Upside: -1.16% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 82 Outperform
• Price Target: $85.00 ▲(16.04%Upside)

nVent Electric's overall score is bolstered by strong financial performance and positive earnings call outcomes. Technical indicators are favorable, though caution is warranted with overbought signals. Valuation is fair, and the new credit agreement boosts financial flexibility. The company's strategic moves and growth prospects contribute positively to its investment appeal.

Positive Factors

Acquisitions and Growth

Recent acquisitions have positioned nVent to achieve double-digit revenue growth in the data center and power utilities end-markets.

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

Acquisition Challenges

EPG's adjusted EBITDA margin is about 250 basis points below nVent's corporate average before synergies.

Market Concerns

The negative narrative around curtailed spending by Datacenters on less expensive AI is overdone.

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 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 Financial Statement Overview

Summary

nVent Electric exhibits strong financial performance with robust profitability, solid balance sheet, and healthy cash flows. The income statement shows strong profitability and growth, though there are some revenue fluctuations and increased debt levels that warrant attention.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.22B	3.01B	3.26B	2.91B	2.46B	2.00B
Gross Profit	1.29B	1.21B	1.34B	1.10B	941.90M	749.40M
EBITDA	666.80M	681.20M	720.30M	618.00M	484.60M	370.90M
Net Income	587.40M	331.80M	567.10M	399.80M	272.90M	-47.20M
Balance Sheet
Total Assets	6.73B	6.73B	6.16B	4.90B	4.67B	4.37B
Cash, Cash Equivalents and Short-Term Investments	1.34B	131.20M	185.10M	297.50M	49.50M	122.50M
Total Debt	1.76B	2.27B	1.90B	1.08B	999.20M	948.00M
Total Liabilities	3.11B	3.50B	3.02B	2.17B	2.18B	1.96B
Stockholders Equity	3.62B	3.24B	3.14B	2.73B	2.50B	2.41B
Cash Flow
Free Cash Flow	535.30M	427.00M	457.10M	348.70M	333.80M	304.00M
Operating Cash Flow	617.00M	501.00M	528.10M	394.60M	373.30M	344.00M
Investing Cash Flow	824.80M	-758.40M	-1.16B	-52.50M	-274.00M	-65.00M
Financing Cash Flow	-297.20M	146.20M	516.70M	-82.10M	-166.80M	-272.50M

nVent Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.25
• 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 73.25 is above the 20-day moving average (MA) of 69.51, above the 50-day MA of 64.26, and above the 200-day MA of 66.07, indicating a bullish trend. The MACD of 2.42 indicates Negative momentum. The RSI at 70.85 is Negative, neither overbought nor oversold. The STOCH value of 80.97 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	82 Outperform	$12.08B	20.95	7.63%	1.09%	-5.12%	1.69%
POWL	78 Outperform	$2.57B	14.97	37.08%	0.50%	27.43%	67.93%
AYI	76 Outperform	$9.30B	23.90	16.60%	0.22%	9.16%	4.09%
AEIS	76 Outperform	$4.98B	68.37	6.36%	0.30%	0.06%	-28.32%
ATKR	74 Outperform	$2.39B	13.70	12.73%	1.85%	-12.02%	-67.69%
ENS	73 Outperform	$3.35B	9.65	19.82%	1.11%	1.00%	38.51%
Sector *	65 Neutral	$10.56B	15.51	5.57%	1.96%	2.71%	-26.32%

nVent Electric Corporate Events

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.

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.

nVent Electric Holds Annual General Meeting

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.