PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNR - IE00BLS09M33 - Common Stock
101.86 USD
-2.39 (-2.29%)
103.29 USD
+1.43 (+1.4%)
Overall PNR gets a fundamental rating of 6 out of 10. We evaluated PNR against 130 industry peers in the Machinery industry. While PNR has a great profitability rating, there are some minor concerns on its financial health. PNR has a correct valuation and a medium 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
The Return On Assets of PNR (9.68%) is better than 79.23% of its industry peers.
PNR's Return On Equity of 17.29% is fine compared to the rest of the industry. PNR outperforms 77.69% of its industry peers.
The Return On Invested Capital of PNR (13.90%) is better than 83.08% 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 10.46%.
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 88.46% of its industry peers.
PNR's Profit Margin has improved in the last couple of years.
PNR has a better Operating Margin (22.33%) than 93.85% of its industry peers.
In the last couple of years the Operating Margin of PNR has grown nicely.
PNR's Gross Margin of 40.87% is fine compared to the rest of the industry. PNR outperforms 75.38% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PNR is creating some value.
The number of shares outstanding for PNR has been reduced compared to 1 year ago.
PNR has less shares outstanding than it did 5 years ago.
PNR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.06 indicates that PNR is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.06, PNR is doing good in the industry, outperforming 76.15% 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's Debt to FCF ratio of 2.02 is fine compared to the rest of the industry. PNR outperforms 77.69% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that PNR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, PNR is in line with its industry, outperforming 55.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.06 |
ROIC/WACC1.53
WACC9.1%
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.
Looking at the Current ratio, with a value of 1.46, PNR is doing worse than 74.62% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that PNR may have some problems paying its short term obligations.
PNR has a worse Quick ratio (0.82) than 74.62% of its industry peers.
| 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.
Measured over the past years, PNR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.72% on average per year.
Looking at the last year, PNR shows a small growth in Revenue. The Revenue has grown by 0.83% in the last 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)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 Y14.24%
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 21.13, PNR is valued on the expensive side.
PNR's Price/Earnings ratio is a bit cheaper when compared to the industry. PNR is cheaper than 64.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of PNR to the average of the S&P500 Index (26.29), we can say PNR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.69, the valuation of PNR can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as PNR.
PNR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
PNR's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PNR indicates a somewhat cheap valuation: PNR is cheaper than 65.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.3 | ||
| EV/EBITDA | 17.46 |
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)1.48
PEG (5Y)1.66
EPS Next 2Y12.18%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
PNR has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 1.84, PNR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.95, PNR pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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%
101.86
-2.39 (-2.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.93%
Inst Owner Change3.55%
Ins Owners0.74%
Ins Owner Change0.93%
Market Cap16.67B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts78.4
Price Target124.05 (21.78%)
Short Float %2.03%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)-0.32%
PT rev (3m)4.87%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 18.69 | ||
| P/S | 4.04 | ||
| P/FCF | 21.3 | ||
| P/OCF | 19.6 | ||
| P/B | 4.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.46 |
EPS(TTM)4.82
EY4.73%
EPS(NY)5.45
Fwd EY5.35%
FCF(TTM)4.78
FCFY4.7%
OCF(TTM)5.2
OCFY5.1%
SpS25.23
BVpS23.11
TBVpS-5.1
PEG (NY)1.48
PEG (5Y)1.66
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 | 5.06 |
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 Y14.24%
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 Year19.09%
EBIT Next 3Y12.06%
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 8 / 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 14.24% in the next year.