PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - NYSE:PNR - IE00BLS09M33 - Common Stock
109.46 USD
-1.55 (-1.4%)
110.34 USD
+0.88 (+0.8%)
We assign a fundamental rating of 6 out of 10 to PNR. PNR was compared to 128 industry peers in the Machinery industry. PNR gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, PNR is valued expensive at the moment.
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.
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 (9.41%) is better than 77.34% of its industry peers.
PNR has a Return On Equity of 16.59%. This is in the better half of the industry: PNR outperforms 79.69% of its industry peers.
PNR's Return On Invested Capital of 14.24% is amongst the best of the industry. PNR outperforms 85.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PNR is above the industry average of 10.02%.
The last Return On Invested Capital (14.24%) for PNR is above the 3 year average (12.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.41% | ||
| ROE | 16.59% | ||
| ROIC | 14.24% |
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 (14.86%) than 89.06% of its industry peers.
PNR's Profit Margin has improved in the last couple of years.
PNR has a Operating Margin of 21.91%. This is amongst the best in the industry. PNR outperforms 94.53% of its industry peers.
In the last couple of years the Operating Margin of PNR has grown nicely.
The Gross Margin of PNR (41.20%) is better than 76.56% of its industry peers.
PNR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.91% | ||
| PM (TTM) | 14.86% | ||
| GM | 41.2% |
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 5.56 indicates that PNR is not in any danger for bankruptcy at the moment.
PNR has a better Altman-Z score (5.56) than 82.03% of its industry peers.
The Debt to FCF ratio of PNR is 1.67, which is an excellent value as it means it would take PNR, only 1.67 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PNR (1.67) is better than 78.91% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that PNR is not too dependend on debt financing.
PNR has a Debt to Equity ratio of 0.38. This is comparable to the rest of the industry: PNR outperforms 58.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 5.56 |
ROIC/WACC1.58
WACC9.02%
2.3 Liquidity
PNR has a Current Ratio of 1.45. 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 1.45, PNR is doing worse than 76.56% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that PNR may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, PNR is not doing good in the industry: 72.66% of the companies in the same industry are doing better.
PNR does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.45 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
PNR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.63%, which is quite good.
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.
PNR shows a decrease in Revenue. In the last year, the revenue decreased by -0.25%.
The Revenue has been growing slightly by 6.66% on average over the past years.
EPS 1Y (TTM)17.63%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%13.93%
Revenue 1Y (TTM)-0.25%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
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 8.71% on average per year.
The Revenue is expected to grow by 3.56% on average over the next years.
EPS Next Y12.68%
EPS Next 2Y11.17%
EPS Next 3Y10.16%
EPS Next 5Y8.71%
Revenue Next Year1.45%
Revenue Next 2Y2.55%
Revenue Next 3Y3.18%
Revenue Next 5Y3.56%
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 23.44, PNR is valued on the expensive side.
PNR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. PNR is around the same levels.
PNR is valuated rather expensively with a Price/Forward Earnings ratio of 20.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNR is on the same level as its industry peers.
PNR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 20.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PNR is valued a bit more expensive than the industry average as 60.94% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, PNR is valued a bit cheaper than the industry average as 63.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.44 | ||
| EV/EBITDA | 18.94 |
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)1.85
PEG (5Y)1.84
EPS Next 2Y11.17%
EPS Next 3Y10.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, PNR is not a good candidate for dividend investing.
PNR's Dividend Yield is comparable with the industry average which is at 1.74.
With a Dividend Yield of 0.89, PNR pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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 26.01% 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.
DP26.01%
EPS Next 2Y11.17%
EPS Next 3Y10.16%
109.46
-1.55 (-1.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.3%
Inst Owner Change-2.55%
Ins Owners0.78%
Ins Owner Change7.98%
Market Cap17.94B
Analysts79.2
Price Target118.33 (8.1%)
Short Float %1.86%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.92
Dividend Growth(5Y)4.97%
DP26.01%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.77%
Min EPS beat(2)2.91%
Max EPS beat(2)8.64%
EPS beat(4)4
Avg EPS beat(4)4.62%
Min EPS beat(4)0.73%
Max EPS beat(4)8.64%
EPS beat(8)7
Avg EPS beat(8)4.25%
EPS beat(12)11
Avg EPS beat(12)5.55%
EPS beat(16)15
Avg EPS beat(16)4.94%
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-0.94%
Max Revenue beat(4)1.16%
Revenue beat(8)3
Avg Revenue beat(8)-0.09%
Revenue beat(12)7
Avg Revenue beat(12)0.27%
Revenue beat(16)11
Avg Revenue beat(16)0.81%
PT rev (1m)0.04%
PT rev (3m)10.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)1.72%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 20.45 | ||
| P/S | 4.38 | ||
| P/FCF | 21.44 | ||
| P/OCF | 19.88 | ||
| P/B | 4.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.94 |
EPS(TTM)4.67
EY4.27%
EPS(NY)5.35
Fwd EY4.89%
FCF(TTM)5.11
FCFY4.66%
OCF(TTM)5.51
OCFY5.03%
SpS25.01
BVpS22.4
TBVpS-4.12
PEG (NY)1.85
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.41% | ||
| ROE | 16.59% | ||
| ROCE | 16.36% | ||
| ROIC | 14.24% | ||
| ROICexc | 14.62% | ||
| ROICexgc | 78.31% | ||
| OM | 21.91% | ||
| PM (TTM) | 14.86% | ||
| GM | 41.2% | ||
| FCFM | 20.42% |
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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.67 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 57.12% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.08% | ||
| Profit Quality | 137.35% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 5.56 |
F-Score7
WACC9.02%
ROIC/WACC1.58
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)17.63%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%13.93%
EPS Next Y12.68%
EPS Next 2Y11.17%
EPS Next 3Y10.16%
EPS Next 5Y8.71%
Revenue 1Y (TTM)-0.25%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
Revenue Next Year1.45%
Revenue Next 2Y2.55%
Revenue Next 3Y3.18%
Revenue Next 5Y3.56%
EBIT growth 1Y5.31%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year18.45%
EBIT Next 3Y11.31%
EBIT Next 5Y8.46%
FCF growth 1Y87.67%
FCF growth 3Y7.78%
FCF growth 5Y18.64%
OCF growth 1Y71.47%
OCF growth 3Y7.73%
OCF growth 5Y16.78%