PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - NYSE:PNR - IE00BLS09M33 - Common Stock
106.75 USD
-1.93 (-1.78%)
106.75 USD
0 (0%)
PNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. PNR has an excellent profitability rating, but there are some minor concerns on its financial health. PNR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PNR was profitable.
PNR had a positive operating cash flow in the past year.
Each year in the past 5 years PNR has been profitable.
PNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PNR has a Return On Assets of 9.68%. This is amongst the best in the industry. PNR outperforms 80.77% of its industry peers.
With a decent Return On Equity value of 17.29%, PNR is doing good in the industry, outperforming 79.23% of the companies in the same industry.
The Return On Invested Capital of PNR (13.90%) is better than 83.08% of its industry peers.
PNR had an Average Return On Invested Capital over the past 3 years of 12.28%. This is above the industry average of 10.28%.
The 3 year average ROIC (12.28%) for PNR is below the current ROIC(13.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 17.29% | ||
| ROIC | 13.9% |
ROA(3y)8.88%
ROA(5y)9.37%
ROE(3y)18.22%
ROE(5y)18.91%
ROIC(3y)12.28%
ROIC(5y)12.85%
1.3 Margins
With an excellent Profit Margin value of 15.84%, PNR belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
PNR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.33%, PNR belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
PNR's Operating Margin has improved in the last couple of years.
PNR has a Gross Margin of 40.87%. This is in the better half of the industry: PNR outperforms 76.15% of its industry peers.
In the last couple of years the Gross Margin of PNR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.33% | ||
| PM (TTM) | 15.84% | ||
| GM | 40.87% |
OM growth 3Y8.65%
OM growth 5Y8.02%
PM growth 3Y1.41%
PM growth 5Y4.95%
GM growth 3Y4.71%
GM growth 5Y2.5%
2. Health
2.1 Basic Checks
PNR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PNR has less shares outstanding
PNR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PNR has been reduced compared to a year ago.
2.2 Solvency
PNR has an Altman-Z score of 5.23. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.23, PNR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of PNR is 2.02, which is a good value as it means it would take PNR, 2.02 years of fcf income to pay off all of its debts.
PNR has a Debt to FCF ratio of 2.02. This is in the better half of the industry: PNR outperforms 77.69% of its industry peers.
PNR has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
PNR has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.23 |
ROIC/WACC1.53
WACC9.11%
2.3 Liquidity
PNR has a Current Ratio of 1.46. This is a normal value and indicates that PNR is financially healthy and should not expect problems in meeting its short term obligations.
PNR's Current ratio of 1.46 is on the low side compared to the rest of the industry. PNR is outperformed by 75.38% of its industry peers.
A Quick Ratio of 0.82 indicates that PNR may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, PNR is not doing good in the industry: 73.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
PNR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.99%, which is quite good.
The Earnings Per Share has been growing by 12.72% on average over the past years. This is quite good.
Looking at the last year, PNR shows a small growth in Revenue. The Revenue has grown by 0.83% in the last year.
Measured over the past years, PNR shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
EPS 1Y (TTM)16.99%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%13.76%
Revenue 1Y (TTM)0.83%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%2.88%
3.2 Future
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.97% on average over the next years.
EPS Next Y14.14%
EPS Next 2Y12.18%
EPS Next 3Y11.01%
EPS Next 5Y9.23%
Revenue Next Year1.94%
Revenue Next 2Y3.28%
Revenue Next 3Y3.68%
Revenue Next 5Y3.97%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.15, PNR is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as PNR.
The average S&P500 Price/Earnings ratio is at 25.91. PNR is around the same levels.
With a Price/Forward Earnings ratio of 19.59, PNR is valued on the expensive side.
PNR's Price/Forward Earnings is on the same level as the industry average.
PNR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.15 | ||
| Fwd PE | 19.59 |
4.2 Price Multiples
PNR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PNR is more expensive than 60.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PNR is valued a bit cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.36 | ||
| EV/EBITDA | 18.26 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PNR may justify a higher PE ratio.
PEG (NY)1.57
PEG (5Y)1.74
EPS Next 2Y12.18%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
PNR has a yearly dividend return of 0.94%, which is pretty low.
PNR's Dividend Yield is a higher than the industry average which is at 1.86.
Compared to an average S&P500 Dividend Yield of 2.36, PNR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of PNR has a limited annual growth rate of 4.97%.
PNR has paid a dividend for at least 10 years, which is a reliable track record.
As PNR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.97%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
24.66% of the earnings are spent on dividend by PNR. This is a low number and sustainable payout ratio.
The dividend of PNR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.66%
EPS Next 2Y12.18%
EPS Next 3Y11.01%
106.75
-1.93 (-1.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change-0.38%
Ins Owners0.78%
Ins Owner Change0.61%
Market Cap17.50B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts78.4
Price Target124.45 (16.58%)
Short Float %1.17%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend0.92
Dividend Growth(5Y)4.97%
DP24.66%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.43%
Min EPS beat(2)2.91%
Max EPS beat(2)3.95%
EPS beat(4)4
Avg EPS beat(4)5.42%
Min EPS beat(4)2.91%
Max EPS beat(4)8.64%
EPS beat(8)7
Avg EPS beat(8)3.93%
EPS beat(12)11
Avg EPS beat(12)5.38%
EPS beat(16)15
Avg EPS beat(16)4.85%
Revenue beat(2)1
Avg Revenue beat(2)0.03%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)0.59%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-0.94%
Max Revenue beat(4)1.16%
Revenue beat(8)3
Avg Revenue beat(8)-0.1%
Revenue beat(12)7
Avg Revenue beat(12)0.31%
Revenue beat(16)11
Avg Revenue beat(16)0.73%
PT rev (1m)5.17%
PT rev (3m)5.21%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)1.2%
EPS NY rev (3m)3.04%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.15 | ||
| Fwd PE | 19.59 | ||
| P/S | 4.24 | ||
| P/FCF | 22.36 | ||
| P/OCF | 20.58 | ||
| P/B | 4.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.26 |
EPS(TTM)4.82
EY4.52%
EPS(NY)5.45
Fwd EY5.1%
FCF(TTM)4.77
FCFY4.47%
OCF(TTM)5.19
OCFY4.86%
SpS25.18
BVpS23.07
TBVpS-5.09
PEG (NY)1.57
PEG (5Y)1.74
Graham Number50.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 17.29% | ||
| ROCE | 15.97% | ||
| ROIC | 13.9% | ||
| ROICexc | 14.22% | ||
| ROICexgc | 78.17% | ||
| OM | 22.33% | ||
| PM (TTM) | 15.84% | ||
| GM | 40.87% | ||
| FCFM | 18.96% |
ROA(3y)8.88%
ROA(5y)9.37%
ROE(3y)18.22%
ROE(5y)18.91%
ROIC(3y)12.28%
ROIC(5y)12.85%
ROICexc(3y)12.58%
ROICexc(5y)13.17%
ROICexgc(3y)64.09%
ROICexgc(5y)68.53%
ROCE(3y)14.11%
ROCE(5y)14.77%
ROICexgc growth 3Y-5.5%
ROICexgc growth 5Y5.36%
ROICexc growth 3Y-2.61%
ROICexc growth 5Y4.34%
OM growth 3Y8.65%
OM growth 5Y8.02%
PM growth 3Y1.41%
PM growth 5Y4.95%
GM growth 3Y4.71%
GM growth 5Y2.5%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 58.45% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.95% | ||
| Profit Quality | 119.66% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 5.23 |
F-Score6
WACC9.11%
ROIC/WACC1.53
Cap/Depr(3y)70.35%
Cap/Depr(5y)74.31%
Cap/Sales(3y)1.91%
Cap/Sales(5y)1.88%
Profit Quality(3y)85.25%
Profit Quality(5y)99.67%
High Growth Momentum
Growth
EPS 1Y (TTM)16.99%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%13.76%
EPS Next Y14.14%
EPS Next 2Y12.18%
EPS Next 3Y11.01%
EPS Next 5Y9.23%
Revenue 1Y (TTM)0.83%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%2.88%
Revenue Next Year1.94%
Revenue Next 2Y3.28%
Revenue Next 3Y3.68%
Revenue Next 5Y3.97%
EBIT growth 1Y4.81%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year18.55%
EBIT Next 3Y11.4%
EBIT Next 5Y8.8%
FCF growth 1Y51.48%
FCF growth 3Y7.78%
FCF growth 5Y18.64%
OCF growth 1Y43.3%
OCF growth 3Y7.73%
OCF growth 5Y16.78%
PENTAIR PLC / PNR FAQ
What is the fundamental rating for PNR stock?
ChartMill assigns a fundamental rating of 6 / 10 to PNR.
Can you provide the valuation status for PENTAIR PLC?
ChartMill assigns a valuation rating of 4 / 10 to PENTAIR PLC (PNR). This can be considered as Fairly Valued.
How profitable is PENTAIR PLC (PNR) stock?
PENTAIR PLC (PNR) has a profitability rating of 9 / 10.
What is the financial health of PENTAIR PLC (PNR) stock?
The financial health rating of PENTAIR PLC (PNR) is 5 / 10.
What is the earnings growth outlook for PENTAIR PLC?
The Earnings per Share (EPS) of PENTAIR PLC (PNR) is expected to grow by 14.14% in the next year.