NVT

nVent Electric PLC

Industrial/Transportation, Event Driven/Special Sit


Presented:05/29/2018
Price:$26.60
Cap:$4.75B
Current Price:$73.36
Cap:$12.19B

Presented

Date05/29/2018
Price$26.60
Market Cap$4.75B
Ent ValueN/A
P/E RatioN/A
Book Value$20.40
Div Yield0%
Shares O/S178.42M
Ave Daily Vol3,314,377
Short IntN/A

Current

Price$73.36
Market Cap$12.19B
nVent Electric Plc provides electrical connection and protection solutions. It designs, manufactures, markets, installs, and services products and solutions that connect and protect some of the equipment, buildings, and critical processes. The company offers enclosures, electrical connections and fastening, and thermal management solutions across industry-leading. Its products brands include Caddy, Erico, Hoffman, Raychem, Schroff, and Tracer. The company was founded on May 30, 2017 and is headquartered in London, the United Kingdom.

Publicly traded companies mentioned herein: ABB Ltd (ABB), Eaton Corporation PLC (ETN), Hubbell Incorporated (HUBB), nVent Electric PLC (NVT), Pentair PLC (PNR)

Highlights

Following its spin-off from Pentair, the presenter is long shares of nVent Electric (NVT). He noted that the expectation was for nVent to trade rich following the spin-off, but it seems as though the market is favoring PNR and NVT is the “orphan”. Regardless, the risk/reward is favorable with the stock at ~$26, as he is modeling $2.25 of EPS in 2019, versus the Street at ~$1.90. In his opinion, a 7% earnings CAGR, as is assumed by the sell side, is too low, making upward revisions likely. At a reasonable, mid-teens multiple, the stock would be more fairly valued in the low $30s, and there could be optionality around either the company taking on more leverage for M&A, or NVT becoming an acquisition target.

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Idea Discussion

Commentor 1 - 2 weeks ago

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