Is PENTAIR PLC (NYSE:PNR) suited for quality investing?

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.

Exploring Why NYSE:PNR Holds Appeal for Quality Investors.

• PENTAIR PLC has demonstrated significant revenue growth over the past 5 years, with a 6.72% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 61.04%, PENTAIR PLC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• The Debt/Free Cash Flow Ratio of PENTAIR PLC stands at 3.66, 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.
• With a favorable Profit Quality (5-year) ratio of 94.09%, PENTAIR PLC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 10.42%, PENTAIR PLC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• PENTAIR PLC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall PNR gets a fundamental rating of 5 out of 10. We evaluated PNR against 133 industry peers in the Machinery industry. While PNR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PNR has a correct valuation and a medium growth rate.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.