Why the quality investor may take a look at PENTAIR PLC (NYSE:PNR).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PENTAIR PLC (NYSE:PNR) is suited for quality investing. Investors should of couse do their own research, but we spotted PENTAIR PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of PENTAIR PLC

• Over the past 5 years, PENTAIR PLC has experienced impressive revenue growth, with 7.69% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• PENTAIR PLC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 64.23% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• PENTAIR PLC maintains a healthy Debt/Free Cash Flow Ratio of 4.74, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• PENTAIR PLC exhibits impressive Profit Quality (5-year) with a 101.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• The 5-year EBIT growth of PENTAIR PLC has been remarkable, with 9.79% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• PENTAIR PLC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to PNR. PNR was compared to 133 industry peers in the Machinery industry. PNR scores excellent on profitability, but there are some minor concerns on its financial health. PNR is not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of PNR

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.