Latest news with #NVT
Yahoo
03-08-2025
- Business
- Yahoo
nVent Electric (NVT) Climbs Over 14% on Raised Sales Growth
We recently published nVent Electric plc (NYSE:NVT) is one of the companies that stood stronger last week. nVent Electric grew its share prices by 14.45 percent week-on-week as investor sentiment was boosted by an optimistic outlook for the year. Encouraged by strong sales and order volumes during the past quarters, nVent Electric plc (NYSE:NVT) raised its sales growth for full-year 2025 to 24 to 26 percent, from the 19 to 21 percent projected previously. The new guidance range represents 8 to 10 percent organic sales growth versus prior guidance of 5 to 7 percent. Full-year GAAP EPS was also pegged at $2.48 to $2.56 while adjusted EPS was projected to hit $3.22 to $3.30. These compare with previous guidance of $2.48 to $2.58 on a GAAP basis, and adjusted EPS of $3.03 to $3.13. In the third quarter alone, sales were targeted to hit 27 to 29 percent, with organic sales growth of 11 to 13 percent. GAAP EPS was targeted at $0.67 to $0.69, while adjusted EPS was expected at $0.86 to $0.88. In the first half of the year, net income jumped by 117 percent to $470.2 million from $216.1 million in the same period last year, while revenues grew by 20 percent to $1.77 billion from $1.47 billion year-on-year. Copyright: kadmy / 123RF Stock Photo Net income in the second quarter, however, dipped by 1.3 percent to $109.5 million from $111 million year-on-year, while revenues increased by 30 percent to $963.1 million from $739.8 million year-on-year. While we acknowledge the potential of NVT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
Yahoo
12-06-2025
- Business
- Yahoo
VRT vs. NVT: Which Data Center Infrastructure Stock Is the Better Buy?
Vertiv VRT and nVent Electric NVT are major players in the data center infrastructure market, providing critical infrastructure solutions for data centers and industrial environments. While Vertiv offers advanced thermal and power management systems tailored for large-scale data centers, nVent Electric provides robust electrical connection and protection solutions, including enclosures and heat management, that are essential to reliable data center a Grand View Research report, the data center infrastructure management market was valued at around $3.06 billion in 2024 and is expected to register a CAGR of 17.3% from 2025 to 2030. Both Vertiv and nVent Electric are likely to gain from the massive growth VRT or NVT — Which of these Data Center Infrastructure stocks has the greater upside potential? Let's find out. Vertiv's extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions, is noteworthy. In the trailing 12 months, organic orders grew approximately 20%, with a book-to-bill of 1.4 times for the first quarter of 2025, indicating a strong prospect. Backlog grew 10% sequentially and 25% year over year to $7.9 recently introduced a 142kW cooling and power reference architecture for the NVIDIA GB300 NVL72 platform, designed to accelerate AI infrastructure deployment with enhanced energy efficiency and scalability. Integrated with SimReady 3D assets in NVIDIA Omniverse, the solution streamlines design, testing, and global rollout for next-gen AI data also launched four new systems designed to meet the growing demands of AI applications. The four new systems include Vertiv Unify software for infrastructure management, SmartRun modular prefabricated solutions, CoolLoop RDHx high-density heat exchangers, and PowerDirect Rack high-density DC power shelves, all designed to enhance power efficiency, thermal management, and scalability in AI-driven data capital expenditure spending plans by hyperscalers on data center capacity expansion bode well for Vertiv. The company's rich partner base, which includes Maxom, Ballard Power Systems, Compass Datacenters, NVIDIA, Intel, ZincFive, and Tecogen, is a key catalyst. nVent Electric is benefiting from strong momentum in the data center space through its rapidly growing Data Solutions business. This segment has shown double-digit sales increases, driven by increased demand for electrical infrastructure products that support data center operations. Acquisitions have also played an important role in expanding NVT's portfolio. In May 2025, NVT completed its $975 million acquisition of the Electrical Products Group from Avail Infrastructure Solutions. The deal strengthens NVT's Systems Protection segment and expands its presence in power utilities, data centers, and renewable addition to acquisitions, nVent's investment in new products is also contributing to its success in the data center space. During the quarter, the company launched 35 new products, mainly aimed at meeting evolving data center collaboration with NVIDIA has been noteworthy. The company is delivering advanced liquid cooling solutions to support NVIDIA's GB200 NVL72 and next-gen platforms, enhancing performance and energy efficiency in AI-driven data centers. In the year-to-date period, Vertiv's shares have lost 2.7%, whereas nVent Electric's shares have returned 0.7%. Vertiv's share price has declined due to increasing macroeconomic challenges and uncertainty attributed to higher tariffs. NVT shares are benefiting from strong growth in its Data Solutions business and increased demand for electrical infrastructure products in high-growth verticals like data centers and power utilities. Image Source: Zacks Investment Research Valuation-wise, Vertiv shares are currently overvalued as suggested by a Value Score of D, whereas NVT shares are cheap, as indicated by a Value Score of terms of forward 12-month Price/Sales, Vertiv shares are trading at 4.17X, higher than NVT's 3.01X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Vertiv's 2025 earnings is pegged at $3.55 per share, which remained unchanged over the past 30 days, indicating a 24.56% increase year over year. Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. Quote The Zacks Consensus Estimate for nVent Electric's 2025 earnings is pegged at $3.08 per share, which has remained unchanged over the past 30 days, indicating a 23.69% increase year over year. nVent Electric PLC price-consensus-chart | nVent Electric PLC Quote While both Vertiv and nVent Electric are well-positioned to benefit from the booming data center market, NVT is the stronger investment option compared to Vertiv, thanks to its consistent growth in its Data Solutions segment and strategic acquisitions. Its cheap valuation and ongoing product innovation offer greater upside potential. Vertiv's higher valuation and recent stock decline make it a less compelling choice at this nVent Electric has a Zacks Rank #2 (Buy), making the stock a stronger pick compared to Vertiv, which has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report nVent Electric PLC (NVT) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
03-03-2025
- Business
- Yahoo
nVent Electric plc's (NYSE:NVT) Intrinsic Value Is Potentially 23% Below Its Share Price
Using the 2 Stage Free Cash Flow to Equity, nVent Electric fair value estimate is US$46.56 nVent Electric's US$60.34 share price signals that it might be 30% overvalued The US$81.44 analyst price target for NVT is 75% more than our estimate of fair value How far off is nVent Electric plc (NYSE:NVT) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. View our latest analysis for nVent Electric We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$470.7m US$523.8m US$532.7m US$543.4m US$555.6m US$568.8m US$583.0m US$598.0m US$613.7m US$630.1m Growth Rate Estimate Source Analyst x5 Analyst x4 Est @ 1.70% Est @ 2.01% Est @ 2.24% Est @ 2.39% Est @ 2.50% Est @ 2.57% Est @ 2.63% Est @ 2.66% Present Value ($, Millions) Discounted @ 9.2% US$431 US$439 US$409 US$382 US$358 US$336 US$315 US$296 US$278 US$262 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$3.5b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.8%. We discount the terminal cash flows to today's value at a cost of equity of 9.2%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$630m× (1 + 2.8%) ÷ (9.2%– 2.8%) = US$10b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$10b÷ ( 1 + 9.2%)10= US$4.2b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$7.7b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$60.3, the company appears slightly overvalued at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at nVent Electric as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.2%, which is based on a levered beta of 1.255. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Electrical market. Expensive based on P/E ratio and estimated fair value. Opportunity Annual earnings are forecast to grow faster than the American market. Threat Annual revenue is forecast to grow slower than the American market. Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. What is the reason for the share price exceeding the intrinsic value? For nVent Electric, there are three additional items you should further examine: Risks: Be aware that nVent Electric is showing 2 warning signs in our investment analysis , you should know about... Future Earnings: How does NVT's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
