PENTAIR PLC (PNR) Stock Fundamental Analysis
NYSE:PNR - New York Stock Exchange, Inc. - IE00BLS09M33 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PNR. PNR was compared to 127 industry peers in the Machinery industry. PNR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PNR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PNR had positive earnings in the past year.
PNR had a positive operating cash flow in the past year.
Each year in the past 5 years PNR has been profitable.
Each year in the past 5 years PNR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.59%, PNR is doing good in the industry, outperforming 78.74% of the companies in the same industry.
With a decent Return On Equity value of 17.81%, PNR is doing good in the industry, outperforming 76.38% of the companies in the same industry.
PNR's Return On Invested Capital of 13.81% is amongst the best of the industry. PNR outperforms 81.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PNR is in line with the industry average of 10.78%.
The 3 year average ROIC (12.28%) for PNR is below the current ROIC(13.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 17.81% | ||
| ROIC | 13.81% |
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 15.87%, PNR belongs to the best of the industry, outperforming 89.76% of the companies in the same industry.
In the last couple of years the Profit Margin of PNR has grown nicely.
Looking at the Operating Margin, with a value of 22.71%, PNR belongs to the top of the industry, outperforming 94.49% of the companies in the same industry.
In the last couple of years the Operating Margin of PNR has grown nicely.
PNR has a better Gross Margin (40.73%) than 75.59% of its industry peers.
In the last couple of years the Gross Margin of PNR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.71% | ||
| PM (TTM) | 15.87% | ||
| GM | 40.73% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PNR is still creating some value.
Compared to 1 year ago, PNR has less shares outstanding
The number of shares outstanding for PNR has been reduced compared to 5 years ago.
PNR has a better debt/assets ratio than last year.
2.2 Solvency
PNR has an Altman-Z score of 5.09. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.09, PNR is doing good in the industry, outperforming 77.17% of the companies in the same industry.
PNR has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as PNR would need 2.40 years to pay back of all of its debts.
PNR has a Debt to FCF ratio of 2.40. This is in the better half of the industry: PNR outperforms 72.44% of its industry peers.
PNR has a Debt/Equity ratio of 0.51. This is a neutral value indicating PNR is somewhat dependend on debt financing.
The Debt to Equity ratio of PNR (0.51) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for PNR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 5.09 |
ROIC/WACC1.53
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.89 indicates that PNR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.89, PNR perfoms like the industry average, outperforming 43.31% of the companies in the same industry.
PNR has a Quick Ratio of 1.22. This is a normal value and indicates that PNR is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.22, PNR perfoms like the industry average, outperforming 47.24% of the companies in the same industry.
The current and quick ratio evaluation for PNR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.58% over the past year.
The Earnings Per Share has been growing by 12.72% on average over the past years. This is quite good.
The Revenue has decreased by -0.42% in the past 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)19.58%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%20.21%
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%-0.67%
3.2 Future
Based on estimates for the next years, PNR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.01% on average per year.
The Revenue is expected to grow by 3.90% on average over the next years.
EPS Next Y10.77%
EPS Next 2Y10.43%
EPS Next 3Y9.66%
EPS Next 5Y9.01%
Revenue Next Year1.21%
Revenue Next 2Y2.63%
Revenue Next 3Y3.21%
Revenue Next 5Y3.9%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.18, which indicates a rather expensive current valuation of PNR.
PNR's Price/Earnings ratio is in line with the industry average.
PNR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.84, PNR is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as PNR.
PNR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 19.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PNR is valued a bit more expensive than 60.63% of the companies in the same industry.
PNR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.58 | ||
| EV/EBITDA | 18.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PNR does not grow enough to justify the current Price/Earnings ratio.
PNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)1.82
EPS Next 2Y10.43%
EPS Next 3Y9.66%
5. Dividend
5.1 Amount
PNR has a yearly dividend return of 0.93%, which is pretty low.
PNR's Dividend Yield is comparable with the industry average which is at 1.82.
Compared to an average S&P500 Dividend Yield of 2.35, PNR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of PNR has a limited annual growth rate of 4.97%.
PNR has been paying a dividend for at least 10 years, so it has a reliable track record.
PNR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.97%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
PNR pays out 24.03% of its income as dividend. This is a sustainable payout ratio.
The dividend of PNR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.03%
EPS Next 2Y10.43%
EPS Next 3Y9.66%
104.77
-1.97 (-1.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.05%
Inst Owner Change-0.19%
Ins Owners0.82%
Ins Owner Change16.31%
Market Cap17.24B
Analysts80
Price Target107.81 (2.9%)
Short Float %1.79%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.92
Dividend Growth(5Y)4.97%
DP24.03%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.39%
Min EPS beat(2)6.19%
Max EPS beat(2)10.6%
EPS beat(4)4
Avg EPS beat(4)5.79%
Min EPS beat(4)0.73%
Max EPS beat(4)10.6%
EPS beat(8)7
Avg EPS beat(8)4.99%
EPS beat(12)11
Avg EPS beat(12)5.59%
EPS beat(16)15
Avg EPS beat(16)5.15%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.94%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-0.94%
Max Revenue beat(4)1.16%
Revenue beat(8)4
Avg Revenue beat(8)0.16%
Revenue beat(12)8
Avg Revenue beat(12)0.32%
Revenue beat(16)12
Avg Revenue beat(16)0.97%
PT rev (1m)0.42%
PT rev (3m)-6.95%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)0.12%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 19.84 | ||
| P/S | 4.23 | ||
| P/FCF | 22.58 | ||
| P/OCF | 20.63 | ||
| P/B | 4.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.5 |
EPS(TTM)4.52
EY4.31%
EPS(NY)5.28
Fwd EY5.04%
FCF(TTM)4.64
FCFY4.43%
OCF(TTM)5.08
OCFY4.85%
SpS24.77
BVpS22.08
TBVpS-4.25
PEG (NY)2.15
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 17.81% | ||
| ROCE | 15.86% | ||
| ROIC | 13.81% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 59.19% | ||
| OM | 22.71% | ||
| PM (TTM) | 15.87% | ||
| GM | 40.73% | ||
| FCFM | 18.73% |
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%
ROICexcg growth 3Y-5.5%
ROICexcg 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-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 62.41% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.27% | ||
| Profit Quality | 118.01% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 5.09 |
F-Score7
WACC9.03%
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)19.58%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%20.21%
EPS Next Y10.77%
EPS Next 2Y10.43%
EPS Next 3Y9.66%
EPS Next 5Y9.01%
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%-0.67%
Revenue Next Year1.21%
Revenue Next 2Y2.63%
Revenue Next 3Y3.21%
Revenue Next 5Y3.9%
EBIT growth 1Y16.5%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year18.23%
EBIT Next 3Y11.14%
EBIT Next 5Y9.17%
FCF growth 1Y151.07%
FCF growth 3Y7.78%
FCF growth 5Y18.64%
OCF growth 1Y115.2%
OCF growth 3Y7.73%
OCF growth 5Y16.78%