PENTAIR PLC (PNR) Stock Fundamental Analysis
NYSE:PNR - New York Stock Exchange, Inc. - IE00BLS09M33 - Common Stock - Currency: USD
Taking everything into account, PNR scores 5 out of 10 in our fundamental rating. PNR was compared to 128 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PNR had positive earnings in the past year.
In the past year PNR had a positive cash flow from operations.
In the past 5 years PNR has always been profitable.
PNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.70%, PNR is doing good in the industry, outperforming 79.20% of the companies in the same industry.
PNR's Return On Equity of 17.55% is fine compared to the rest of the industry. PNR outperforms 76.00% of its industry peers.
PNR has a better Return On Invested Capital (14.14%) than 80.80% of its industry peers.
PNR had an Average Return On Invested Capital over the past 3 years of 12.01%. This is in line with the industry average of 11.00%.
The 3 year average ROIC (12.01%) for PNR is below the current ROIC(14.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.7% | ||
| ROE | 17.55% | ||
| ROIC | 14.14% |
ROA(3y)8.88%
ROA(5y)9.37%
ROE(3y)18.22%
ROE(5y)18.91%
ROIC(3y)12.01%
ROIC(5y)12.69%
1.3 Margins
The Profit Margin of PNR (15.32%) is better than 89.60% of its industry peers.
PNR's Profit Margin has improved in the last couple of years.
PNR has a Operating Margin of 22.09%. This is amongst the best in the industry. PNR outperforms 92.00% of its industry peers.
In the last couple of years the Operating Margin of PNR has grown nicely.
The Gross Margin of PNR (40.10%) is better than 73.60% of its industry peers.
In the last couple of years the Gross Margin of PNR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.09% | ||
| PM (TTM) | 15.32% | ||
| GM | 40.1% |
OM growth 3Y6.58%
OM growth 5Y6.78%
PM growth 3Y1.41%
PM growth 5Y4.95%
GM growth 3Y3.77%
GM growth 5Y1.95%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PNR is creating some value.
Compared to 1 year ago, PNR has about the same amount of shares outstanding.
The number of shares outstanding for PNR has been reduced compared to 5 years ago.
The debt/assets ratio for PNR has been reduced compared to a year ago.
2.2 Solvency
PNR has a debt to FCF ratio of 2.38. This is a good value and a sign of high solvency as PNR would need 2.38 years to pay back of all of its debts.
The Debt to FCF ratio of PNR (2.38) is better than 75.20% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that PNR is not too dependend on debt financing.
PNR has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: PNR outperforms 48.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | N/A |
ROIC/WACC1.65
WACC8.55%
2.3 Liquidity
PNR has a Current Ratio of 1.60. 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 Current ratio value of 1.60, PNR is not doing good in the industry: 71.20% of the companies in the same industry are doing better.
PNR has a Quick Ratio of 1.60. This is a bad value and indicates that PNR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.92, PNR is not doing good in the industry: 71.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
PNR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.47%, which is quite good.
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 -0.53% in the past year.
PNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
EPS 1Y (TTM)15.47%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%24.14%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%-1.19%
3.2 Future
The Earnings Per Share is expected to grow by 9.24% on average over the next years. This is quite good.
Based on estimates for the next years, PNR will show a small growth in Revenue. The Revenue will grow by 4.19% on average per year.
EPS Next Y10.87%
EPS Next 2Y11.18%
EPS Next 3Y9.79%
EPS Next 5Y9.24%
Revenue Next Year3.56%
Revenue Next 2Y3.96%
Revenue Next 3Y4.15%
Revenue Next 5Y4.19%
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.
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
Based on the Price/Earnings ratio of 21.46, the valuation of PNR can be described as rather expensive.
PNR's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PNR to the average of the S&P500 Index (29.63), we can say PNR is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.36, which indicates a rather expensive current valuation of PNR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNR indicates a somewhat cheap valuation: PNR is cheaper than 61.60% of the companies listed in the same industry.
PNR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PNR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, PNR is valued a bit cheaper than the industry average as 67.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.18 | ||
| EV/EBITDA | 16.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.97
PEG (5Y)1.69
EPS Next 2Y11.18%
EPS Next 3Y9.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.03%, PNR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.67, PNR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.03, PNR pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
The dividend of PNR has a limited annual growth rate of 4.95%.
PNR has been paying a dividend for at least 10 years, so it has 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)4.95%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
24.35% 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.
DP24.35%
EPS Next 2Y11.18%
EPS Next 3Y9.79%
92.94
-2.31 (-2.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.26%
Inst Owner Change-0.38%
Ins Owners0.65%
Ins Owner Change-1.52%
Market Cap15.36B
Analysts76
Price Target115.13 (23.88%)
Short Float %1.67%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend0.92
Dividend Growth(5Y)4.95%
DP24.35%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.46%
Min EPS beat(2)0.73%
Max EPS beat(2)6.19%
EPS beat(4)4
Avg EPS beat(4)4.04%
Min EPS beat(4)0.73%
Max EPS beat(4)6.19%
EPS beat(8)7
Avg EPS beat(8)5.73%
EPS beat(12)11
Avg EPS beat(12)5.05%
EPS beat(16)15
Avg EPS beat(16)6.35%
Revenue beat(2)0
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-0.94%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-0.94%
Max Revenue beat(4)0.12%
Revenue beat(8)4
Avg Revenue beat(8)0.27%
Revenue beat(12)8
Avg Revenue beat(12)0.56%
Revenue beat(16)12
Avg Revenue beat(16)1.53%
PT rev (1m)0.71%
PT rev (3m)11.8%
EPS NQ rev (1m)-8.49%
EPS NQ rev (3m)-8.23%
EPS NY rev (1m)-1.88%
EPS NY rev (3m)-2.06%
Revenue NQ rev (1m)-5.08%
Revenue NQ rev (3m)-7.37%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 19.36 | ||
| P/S | 3.76 | ||
| P/FCF | 22.18 | ||
| P/OCF | 20.03 | ||
| P/B | 4.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.99 |
EPS(TTM)4.33
EY4.66%
EPS(NY)4.8
Fwd EY5.17%
FCF(TTM)4.19
FCFY4.51%
OCF(TTM)4.64
OCFY4.99%
SpS24.71
BVpS21.56
TBVpS-4.58
PEG (NY)1.97
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.7% | ||
| ROE | 17.55% | ||
| ROCE | 16.25% | ||
| ROIC | 14.14% | ||
| ROICexc | 14.45% | ||
| ROICexgc | 70.57% | ||
| OM | 22.09% | ||
| PM (TTM) | 15.32% | ||
| GM | 40.1% | ||
| FCFM | 16.96% |
ROA(3y)8.88%
ROA(5y)9.37%
ROE(3y)18.22%
ROE(5y)18.91%
ROIC(3y)12.01%
ROIC(5y)12.69%
ROICexc(3y)12.31%
ROICexc(5y)13.01%
ROICexgc(3y)62.76%
ROICexgc(5y)67.73%
ROCE(3y)13.81%
ROCE(5y)14.58%
ROICexcg growth 3Y-7.3%
ROICexcg growth 5Y4.15%
ROICexc growth 3Y-4.47%
ROICexc growth 5Y3.14%
OM growth 3Y6.58%
OM growth 5Y6.78%
PM growth 3Y1.41%
PM growth 5Y4.95%
GM growth 3Y3.77%
GM growth 5Y1.95%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.38 | ||
| Debt/EBITDA | 1.61 | ||
| Cap/Depr | 64.92% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.42% | ||
| Profit Quality | 110.7% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | N/A |
F-Score8
WACC8.55%
ROIC/WACC1.65
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)15.47%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%24.14%
EPS Next Y10.87%
EPS Next 2Y11.18%
EPS Next 3Y9.79%
EPS Next 5Y9.24%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%-1.19%
Revenue Next Year3.56%
Revenue Next 2Y3.96%
Revenue Next 3Y4.15%
Revenue Next 5Y4.19%
EBIT growth 1Y15.12%
EBIT growth 3Y9.5%
EBIT growth 5Y13.9%
EBIT Next Year20.37%
EBIT Next 3Y11.2%
EBIT Next 5Y9.22%
FCF growth 1Y27.45%
FCF growth 3Y7.78%
FCF growth 5Y18.64%
OCF growth 1Y23.82%
OCF growth 3Y7.73%
OCF growth 5Y16.78%