In this article we will dive into PENTAIR PLC (NYSE:PNR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PENTAIR PLC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
What matters for quality investors.
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 65.86% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
The Debt/Free Cash Flow Ratio of PENTAIR PLC stands at 3.86, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
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.
With a robust 5-year EBIT growth of 9.79%, PENTAIR PLC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
With EBIT 5-year growth outpacing its Revenue 5-year growth, PENTAIR PLC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
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.
Taking everything into account, PNR scores 5 out of 10 in our fundamental rating. PNR was compared to 133 industry peers in the Machinery industry. PNR has an excellent profitability rating, but there are some minor concerns on its financial health. PNR has a decent growth rate and is not valued too expensively.
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.