PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNR - IE00BLS09M33 - Common Stock
105.16 USD
+0.1 (+0.1%)
105.16 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PNR. PNR was compared to 130 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.
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.
PNR had positive earnings in each of the past 5 years.
Each year in the past 5 years PNR had a positive operating cash flow.
1.2 Ratios
PNR has a Return On Assets of 9.68%. This is amongst the best in the industry. PNR outperforms 81.54% of its industry peers.
PNR's Return On Equity of 17.29% is fine compared to the rest of the industry. PNR outperforms 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.90%, PNR belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
PNR had an Average Return On Invested Capital over the past 3 years of 12.28%. This is in line with the industry average of 10.39%.
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
PNR's Profit Margin of 15.84% is amongst the best of the industry. PNR outperforms 90.77% of its industry peers.
In the last couple of years the Profit Margin of PNR has grown nicely.
The Operating Margin of PNR (22.33%) is better than 93.85% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PNR is still creating some value.
PNR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PNR has less shares outstanding
Compared to 1 year ago, PNR has an improved debt to assets ratio.
2.2 Solvency
PNR has an Altman-Z score of 5.17. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.17, PNR is doing good in the industry, outperforming 77.69% of the companies in the same industry.
PNR has a debt to FCF ratio of 2.02. This is a good value and a sign of high solvency as PNR would need 2.02 years to pay back of all of its debts.
PNR has a better Debt to FCF ratio (2.02) than 78.46% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that PNR is not too dependend on debt financing.
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 | 5.17 |
ROIC/WACC1.53
WACC9.1%
2.3 Liquidity
A Current Ratio of 1.46 indicates that PNR should not have too much problems paying its short term obligations.
PNR has a worse Current ratio (1.46) than 76.15% of its industry peers.
A Quick Ratio of 0.82 indicates that PNR may have some problems paying its short term obligations.
PNR's Quick ratio of 0.82 is on the low side compared to the rest of the industry. PNR is outperformed by 74.62% of its industry peers.
| 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.
The Revenue has been growing slightly by 0.83% 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)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
Based on estimates for the next years, PNR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.
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.
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
A Price/Earnings ratio of 21.82 indicates a rather expensive valuation of PNR.
Compared to the rest of the industry, the Price/Earnings ratio of PNR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of PNR to the average of the S&P500 Index (26.15), we can say PNR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.30, the valuation of PNR can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as PNR.
When comparing the Price/Forward Earnings ratio of PNR to the average of the S&P500 Index (36.22), we can say PNR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.82 | ||
| Fwd PE | 19.3 |
4.2 Price Multiples
PNR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PNR is valued a bit cheaper than 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.99 | ||
| EV/EBITDA | 17.98 |
4.3 Compensation for Growth
PNR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.54
PEG (5Y)1.72
EPS Next 2Y12.18%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, PNR is not a good candidate for dividend investing.
PNR's Dividend Yield is a higher than the industry average which is at 1.90.
With a Dividend Yield of 0.94, PNR pays less dividend than the S&P500 average, which is at 2.32.
| 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 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 24.66% of its income as dividend. This is a sustainable payout ratio.
PNR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.66%
EPS Next 2Y12.18%
EPS Next 3Y11.01%
105.16
+0.1 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change3.49%
Ins Owners0.78%
Ins Owner Change0.93%
Market Cap17.21B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts78.4
Price Target124.48 (18.37%)
Short Float %2.03%
Short Ratio2.75
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)0.03%
PT rev (3m)5.24%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)1.11%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.82 | ||
| Fwd PE | 19.3 | ||
| P/S | 4.17 | ||
| P/FCF | 21.99 | ||
| P/OCF | 20.23 | ||
| P/B | 4.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.98 |
EPS(TTM)4.82
EY4.58%
EPS(NY)5.45
Fwd EY5.18%
FCF(TTM)4.78
FCFY4.55%
OCF(TTM)5.2
OCFY4.94%
SpS25.23
BVpS23.11
TBVpS-5.1
PEG (NY)1.54
PEG (5Y)1.72
Graham Number50.07
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 | 5.17 |
F-Score6
WACC9.1%
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.