Hey! I stumbled across a company called nVent that is not mentioned that often here. They don't sell the shovels to mine the AI gold, but the cooling system, so people don't get cooked in the gold mines. Not as flashy but also nice.
They specialize in data center infrastructure, specifically high-tech racks and liquid cooling systems. Because they’ve partnered up with Nvidia, buying a high-performance GPU often means you're becoming an nVent customer by default,. Some of the biggest customers are Microsoft, Google and Amazon.
Their two main businesses are systems protection, the cooling part, which grew 42% YoY and electrical connections (grew 10% YoY).
Right now they have 12.000 employees and have 500 open positions on their career page. This tells me that they intend to keep on growing.
My biggest problem: They rely on copper and aluminium. If prices keep rising, that is going to be a big problem.
nVent trades at an ATH right now, but at a marketcap of 22B there is still room to grow, even though PE is at 32. Earnings next week will be interesting
Revenue, net income, FCF and Shareholders' Equity show an upward trend. Number of shares are declining. There is some cash reserve at 237 Million but that is not a lot of room for error.
I just started my research. Do we have any long term fans of nVent here? Does anyone work there and can give some insights into the culture? What are other downsides?
Posted by MildlyMoodyMango