- nVent has been blowing the doors off with organic growth - three straight quarters of 20%+ organic revenue growth - but that isn't translating into margin leverage, as costs pinch.
- Cost pressures may ease in 2H'22, but this isn't really a margin leverage story today.
- Management is focused on growth, targeting new product development and M&A in attractive markets like data center, utility modernization, and smart infrastructure.
- nVent is far from my favorite idea, and I'd like more leverage to higher value-add electrification and control products, but the valuation looks like it can support sector/market-beating returns today.
For further details see:
nVent Looking Undervalued Despite Some Near-Term Margin Leverage Challenges