PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNR - IE00BLS09M33 - Common Stock
105.24 USD
-0.84 (-0.79%)
105.24 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. 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
In the past year PNR was profitable.
PNR had a positive operating cash flow in the past year.
In the past 5 years PNR has always been profitable.
In the past 5 years PNR always reported a positive cash flow from operatings.
1.2 Ratios
PNR has a better Return On Assets (9.68%) than 81.54% of its industry peers.
PNR has a Return On Equity of 17.29%. This is in the better half of the industry: PNR outperforms 80.00% of its industry peers.
The Return On Invested Capital of PNR (13.90%) is better than 83.85% of its industry peers.
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 10.35%.
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 has a better Profit Margin (15.84%) than 90.77% of its industry peers.
In the last couple of years the Profit Margin of PNR has grown nicely.
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's Gross Margin of 40.87% is fine compared to the rest of the industry. PNR outperforms 76.15% of its industry peers.
PNR's Gross Margin has improved in the last couple of years.
| 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.
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.
The debt/assets ratio for PNR has been reduced compared to a year ago.
2.2 Solvency
PNR has an Altman-Z score of 5.21. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
PNR has a better Altman-Z score (5.21) than 77.69% of its industry peers.
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's Debt to FCF ratio of 2.02 is fine compared to the rest of the industry. PNR outperforms 78.46% 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 of 0.42. This is comparable to the rest of the industry: PNR outperforms 55.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.21 |
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.
Looking at the Current ratio, with a value of 1.46, PNR is doing worse than 76.15% of the companies in the same industry.
PNR has a Quick Ratio of 1.46. 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 0.82, PNR is not doing good in the industry: 74.62% 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
The Earnings Per Share has grown by an nice 16.99% over the past year.
PNR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
PNR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.83%.
PNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
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
PNR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
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
The Price/Earnings ratio is 21.83, which indicates a rather expensive current valuation of PNR.
PNR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. PNR is around the same levels.
The Price/Forward Earnings ratio is 19.31, which indicates a rather expensive current valuation of PNR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, PNR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 19.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PNR.
Based on the Price/Free Cash Flow ratio, PNR is valued a bit cheaper than the industry average as 62.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.04 | ||
| EV/EBITDA | 18.16 |
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
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 1.97.
With a Dividend Yield of 0.94, PNR pays less dividend than the S&P500 average, which is at 2.40.
| 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.
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
PNR pays out 24.66% 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.
DP24.66%
EPS Next 2Y12.18%
EPS Next 3Y11.01%
105.24
-0.84 (-0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change3.5%
Ins Owners0.78%
Ins Owner Change0.93%
Market Cap17.22B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts78.4
Price Target124.48 (18.28%)
Short Float %2.36%
Short Ratio3.32
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)5.2%
PT rev (3m)5.24%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)1.11%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 19.31 | ||
| P/S | 4.18 | ||
| P/FCF | 22.04 | ||
| P/OCF | 20.28 | ||
| P/B | 4.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.16 |
EPS(TTM)4.82
EY4.58%
EPS(NY)5.45
Fwd EY5.18%
FCF(TTM)4.77
FCFY4.54%
OCF(TTM)5.19
OCFY4.93%
SpS25.18
BVpS23.07
TBVpS-5.09
PEG (NY)1.54
PEG (5Y)1.72
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 | 5.21 |
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.