NVent Electric Operating Margin vs. Gross Profit

NVT Stock  USD 75.32  0.88  1.18%   
Based on the measurements of profitability obtained from NVent Electric's financial statements, NVent Electric's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess NVent Electric's ability to earn profits and add value for shareholders.

NVent Electric Operating Profit Margin

0.18

At this time, NVent Electric's Days Sales Outstanding is comparatively stable compared to the past year. Operating Cash Flow Sales Ratio is likely to gain to 0.19 in 2024, whereas Sales General And Administrative To Revenue is likely to drop 0.18 in 2024. At this time, NVent Electric's Net Income Per Share is comparatively stable compared to the past year. Income Quality is likely to gain to 0.98 in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (109.2 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.310.4112
Way Down
Very volatile
Operating Profit Margin0.120.18
Way Down
Very volatile
For NVent Electric profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NVent Electric to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well nVent Electric PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NVent Electric's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of nVent Electric PLC over time as well as its relative position and ranking within its peers.
  

NVent Electric's Revenue Breakdown by Earning Segment

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Is Electrical Components & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NVent Electric. If investors know NVent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NVent Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.01)
Dividend Share
0.76
Earnings Share
3.43
Revenue Per Share
21.362
Quarterly Revenue Growth
0.094
The market value of nVent Electric PLC is measured differently than its book value, which is the value of NVent that is recorded on the company's balance sheet. Investors also form their own opinion of NVent Electric's value that differs from its market value or its book value, called intrinsic value, which is NVent Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NVent Electric's market value can be influenced by many factors that don't directly affect NVent Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NVent Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if NVent Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NVent Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

nVent Electric PLC Gross Profit vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining NVent Electric's current stock value. Our valuation model uses many indicators to compare NVent Electric value to that of its competitors to determine the firm's financial worth.
nVent Electric PLC is regarded second in operating margin category among its peers. It is regarded fourth in gross profit category among its peers fabricating about  6,306,497,987  of Gross Profit per Operating Margin. At this time, NVent Electric's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value NVent Electric by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

NVent Gross Profit vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

NVent Electric

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.17 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

NVent Electric

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.1 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

NVent Gross Profit Comparison

NVent Electric is currently under evaluation in gross profit category among its peers.

NVent Electric Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in NVent Electric, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NVent Electric will eventually generate negative long term returns. The profitability progress is the general direction of NVent Electric's change in net profit over the period of time. It can combine multiple indicators of NVent Electric, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-104 M-109.2 M
Interest Income35.9 M24.5 M
Operating Income587.4 M389.6 M
Net Income From Continuing Ops470.9 M291 M
Income Before Tax499.5 M330.4 M
Total Other Income Expense Net-87.9 M-83.5 M
Net Income Applicable To Common Shares459.8 M262.6 M
Net Income567.1 M302.7 M
Income Tax Expense-67.6 M-64.2 M
Net Interest Income-63.4 M-60.2 M
Non Operating Income Net Other-2.2 M-2.3 M
Change To Netincome-63.8 M-60.6 M
Net Income Per Share 3.42  3.60 
Income Quality 0.93  0.98 
Net Income Per E B T 1.14  1.10 

NVent Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on NVent Electric. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of NVent Electric position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the NVent Electric's important profitability drivers and their relationship over time.

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Additional Tools for NVent Stock Analysis

When running NVent Electric's price analysis, check to measure NVent Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NVent Electric is operating at the current time. Most of NVent Electric's value examination focuses on studying past and present price action to predict the probability of NVent Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NVent Electric's price. Additionally, you may evaluate how the addition of NVent Electric to your portfolios can decrease your overall portfolio volatility.