Reasonable Growth, Debt Levels, and a High ROIC Make PENTAIR PLC (NYSE:PNR) Appealing to Quality Investors.

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.

Key Considerations for Quality Investors.

• PENTAIR PLC has achieved substantial revenue growth over the past 5 years, with a 6.72% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of PENTAIR PLC stands at 74.07%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 2.24, PENTAIR PLC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• PENTAIR PLC exhibits impressive Profit Quality (5-year) with a 94.09% 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.
• PENTAIR PLC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 10.42%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

PNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 131 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.

Our latest full fundamental report of PNR contains the most current fundamental analsysis.

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

Keep in mind

This article should in no way be interpreted as advice. 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.