PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNR - IE00BLS09M33 - Common Stock
104.14 USD
-1.64 (-1.55%)
104.14 USD
0 (0%)
Taking everything into account, PNR scores 6 out of 10 in our fundamental rating. PNR was compared to 132 industry peers in the Machinery industry. PNR has an excellent profitability rating, but 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.
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
Looking at the Return On Assets, with a value of 9.68%, PNR is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
PNR's Return On Equity of 17.29% is fine compared to the rest of the industry. PNR outperforms 78.03% of its industry peers.
PNR has a Return On Invested Capital of 13.90%. This is amongst the best in the industry. PNR outperforms 84.09% of its industry peers.
PNR had an Average Return On Invested Capital over the past 3 years of 12.28%. This is above the industry average of 10.27%.
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 88.64% of its industry peers.
PNR's Profit Margin has improved in the last couple of years.
PNR has a Operating Margin of 22.33%. This is amongst the best in the industry. PNR outperforms 93.94% of its industry peers.
PNR's Operating Margin has improved in the last couple of years.
The Gross Margin of PNR (40.87%) is better than 76.52% 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
PNR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, PNR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.14 indicates that PNR is not in any danger for bankruptcy at the moment.
PNR has a better Altman-Z score (5.14) than 75.76% 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.
Looking at the Debt to FCF ratio, with a value of 2.02, PNR is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
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 (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.14 |
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's Current ratio of 1.46 is on the low side compared to the rest of the industry. PNR is outperformed by 73.48% of its industry peers.
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.
PNR has a Quick ratio of 0.82. This is in the lower half of the industry: PNR underperforms 74.24% 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.
PNR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
Looking at the last year, PNR shows a small growth in Revenue. The Revenue has grown by 0.83% in the last 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
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
PNR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.97% yearly.
EPS Next Y14.23%
EPS Next 2Y12.14%
EPS Next 3Y11.05%
EPS Next 5Y9.23%
Revenue Next Year1.94%
Revenue Next 2Y3.27%
Revenue Next 3Y3.69%
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
Based on the Price/Earnings ratio of 21.61, the valuation of PNR can be described as rather expensive.
Based on the Price/Earnings ratio, PNR is valued a bit cheaper than 63.64% of the companies in the same industry.
PNR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 19.12, the valuation of PNR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PNR to the average of the S&P500 Index (23.13), we can say PNR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.61 | ||
| Fwd PE | 19.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PNR.
PNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PNR is cheaper than 62.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.77 | ||
| EV/EBITDA | 17.82 |
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)1.52
PEG (5Y)1.7
EPS Next 2Y12.14%
EPS Next 3Y11.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, PNR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.98, PNR pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.02, PNR pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 2Y12.14%
EPS Next 3Y11.05%
104.14
-1.64 (-1.55%)
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 Change0.95%
Market Cap17.04B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts78.4
Price Target124.86 (19.9%)
Short Float %2.16%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.92
Dividend Growth(5Y)4.97%
DP24.66%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)0.3%
PT rev (3m)5.52%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)0.08%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.61 | ||
| Fwd PE | 19.12 | ||
| P/S | 4.13 | ||
| P/FCF | 21.77 | ||
| P/OCF | 20.04 | ||
| P/B | 4.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.82 |
EPS(TTM)4.82
EY4.63%
EPS(NY)5.45
Fwd EY5.23%
FCF(TTM)4.78
FCFY4.59%
OCF(TTM)5.2
OCFY4.99%
SpS25.23
BVpS23.11
TBVpS-5.1
PEG (NY)1.52
PEG (5Y)1.7
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 | 5.14 |
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 Y14.23%
EPS Next 2Y12.14%
EPS Next 3Y11.05%
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 2Y3.27%
Revenue Next 3Y3.69%
Revenue Next 5Y3.97%
EBIT growth 1Y4.81%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year19.09%
EBIT Next 3Y12.11%
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.
What is the valuation status for PNR stock?
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.
Can you provide the expected EPS growth for PNR stock?
The Earnings per Share (EPS) of PENTAIR PLC (PNR) is expected to grow by 14.23% in the next year.