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Nvent Electric (NVT)
:NVT
US Market

nVent Electric (NVT) AI Stock Analysis

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nVent Electric

(NYSE:NVT)

Rating:83Outperform
Price Target:
$77.00
â–²(10.38%Upside)
nVent Electric earns a strong overall score driven by solid financial performance and positive earnings call outlook. The company's robust growth metrics and strategic acquisitions enhance its market position. While valuation and technical signals are moderately positive, the financial stability and positive leadership changes further bolster confidence in nVent's future.
Positive Factors
Financial Performance
The company reported double-digit growth in orders, revenue, adjusted EPS, and free cash flow.
Leadership and Management
NVent's leadership team, including the CEO and CFO, was actively engaged at a major growth stock conference, showcasing their commitment to investor relations.
Market 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.
Negative Factors
Acquisition Challenges
EPG's adjusted EBITDA margin is about 250 basis points below nVent's corporate average before synergies.
Cost Concerns
The negative narrative around curtailed spending by Datacenters on less expensive AI is overdone.

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

nVent Electric Business Overview & Revenue Model

Company DescriptionnVent Electric (NVT) is a global provider of electrical connection and protection solutions. The company operates across various sectors, including industrial, commercial, residential, energy, and infrastructure. Its core products and services include electrical enclosures, electrical fastening systems, and thermal management solutions, designed to enhance the reliability and efficiency of electrical systems.
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: 23.71%|
Next Earnings Date:Jul 31, 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 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
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.22B3.01B3.26B2.91B2.46B2.00B
Gross Profit
1.29B1.21B1.34B1.10B941.90M749.40M
EBIT
550.20M527.10M587.40M440.40M355.40M247.40M
EBITDA
666.80M681.20M720.30M618.00M484.60M370.90M
Net Income Common Stockholders
587.40M331.80M567.10M399.80M272.90M-47.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.34B131.20M185.10M297.50M49.50M122.50M
Total Assets
6.73B6.73B6.16B4.90B4.67B4.37B
Total Debt
1.76B2.27B1.90B1.08B999.20M948.00M
Net Debt
420.10M2.14B1.72B785.70M949.70M825.50M
Total Liabilities
3.11B3.50B3.02B2.17B2.18B1.96B
Stockholders Equity
3.62B3.24B3.14B2.73B2.50B2.41B
Cash FlowFree Cash Flow
535.30M427.00M457.10M348.70M333.80M304.00M
Operating Cash Flow
617.00M501.00M528.10M394.60M373.30M344.00M
Investing Cash Flow
824.80M-758.40M-1.16B-52.50M-274.00M-65.00M
Financing Cash Flow
-297.20M146.20M516.70M-82.10M-166.80M-272.50M

nVent Electric Technical Analysis

Technical Analysis Sentiment
Positive
Last Price69.76
Price Trends
50DMA
59.63
Positive
100DMA
60.24
Positive
200DMA
65.66
Positive
Market Momentum
MACD
2.09
Positive
RSI
61.08
Neutral
STOCH
78.37
Neutral
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 69.76 is above the 20-day moving average (MA) of 66.70, above the 50-day MA of 59.63, and above the 200-day MA of 65.66, indicating a bullish trend. The MACD of 2.09 indicates Positive momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 78.37 is Neutral, 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
83
Outperform
$11.29B19.597.63%1.17%-5.12%1.69%
80
Outperform
$2.33B13.2137.08%0.55%27.43%67.93%
AYAYI
76
Outperform
$8.48B20.8017.86%0.25%2.78%11.53%
74
Outperform
$4.77B63.466.36%0.32%0.06%-28.32%
73
Outperform
$2.27B12.9812.73%1.97%-12.02%-67.69%
ENENS
67
Neutral
$3.52B9.9919.82%1.08%-2.94%22.32%
66
Neutral
$4.51B12.225.40%3.63%4.14%-12.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NVT
nVent Electric
68.13
-9.39
-12.11%
AYI
Acuity Brands
265.58
6.95
2.69%
AEIS
Advanced Energy
122.80
14.14
13.01%
ENS
EnerSys
86.52
-15.68
-15.34%
POWL
Powell Industries
187.85
18.93
11.21%
ATKR
Atkore International Group
66.48
-68.20
-50.64%

nVent Electric Corporate Events

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.