NVTnVent Electric plc
Is the business good?
A genuinely good business: earnings fully cash-backed (1.1×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
A balanced mix of margins, efficiency, and leverage. ROE 16% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NVT?
nVent Electric plc earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.5 points above what the capital costs: growth creates value
- Operating margin
- 17%
Operating margin · Electrical Equipment & Parts median 6.7% · 12 months to Q2 2026
- Cash conversion
- 1.07×
Cash conversion · 1.52× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.31%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 1.9% |
| FY2021 | 14% |
| FY2022 | 13% |
| FY2023 | 17% |
| FY2024 | 18% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q2 2026
- 37%
- Operating margin12 months to Q2 2026
- 17%
- Net margin12 months to Q2 2026
- 12%
- Free cash flow margin
- 12%
- R&D as % of revenue
- 1.8%
- Revenue, trailing twelve months
- $4.83B
- Free cash flow, trailing twelve months
- $578M
- Net income, trailing twelve months
- $598M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Electrical Equipment & Parts
Ranks #4 of 19 by RyuScore