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 course 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.
Key Considerations for Quality Investors.
The 5-year revenue growth of PENTAIR PLC has been remarkable, with 6.72% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
With a notable ROIC excluding cash and goodwill at 66.82%, 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.
PENTAIR PLC maintains a healthy Debt/Free Cash Flow Ratio of 2.76, 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.
The Profit Quality (5-year) of PENTAIR PLC stands at 94.09%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
PENTAIR PLC has experienced impressive EBIT growth over the past 5 years, with 10.42% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
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.
How does the complete fundamental picture look for NYSE:PNR?
ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.
We assign a fundamental rating of 5 out of 10 to PNR. PNR was compared to 131 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.
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
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.