PENTAIR PLC (PNR)
IE00BLS09M33 - Common Stock
Overall PNR gets a fundamental rating of 6 out of 10. We evaluated PNR against 132 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
PNR had positive earnings in the past year.
PNR had a positive operating cash flow in the past year.
PNR had positive earnings in each of the past 5 years.
PNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PNR has a Return On Assets of 10.30%. This is amongst the best in the industry. PNR outperforms 82.31% of its industry peers.
PNR's Return On Equity of 19.06% is amongst the best of the industry. PNR outperforms 80.77% of its industry peers.
PNR has a Return On Invested Capital of 13.92%. This is amongst the best in the industry. PNR outperforms 80.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PNR is in line with the industry average of 11.13%.
The 3 year average ROIC (12.76%) for PNR is below the current ROIC(13.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 19.06% | ||
| ROIC | 13.92% |
ROA(3y)9.53%
ROA(5y)9.14%
ROE(3y)19.98%
ROE(5y)19.04%
ROIC(3y)12.76%
ROIC(5y)12.4%
1.3 Margins
The Profit Margin of PNR (16.29%) is better than 92.31% of its industry peers.
PNR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.48%, PNR belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
In the last couple of years the Operating Margin of PNR has grown nicely.
Looking at the Gross Margin, with a value of 39.71%, PNR is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
PNR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.48% | ||
| PM (TTM) | 16.29% | ||
| GM | 39.71% |
OM growth 3Y6.6%
OM growth 5Y3.47%
PM growth 3Y8.48%
PM growth 5Y5.3%
GM growth 3Y1.84%
GM growth 5Y0.93%
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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PNR has less shares outstanding
The debt/assets ratio for PNR has been reduced compared to a year ago.
2.2 Solvency
PNR has an Altman-Z score of 5.06. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
PNR has a Altman-Z score of 5.06. This is in the better half of the industry: PNR outperforms 75.38% of its industry peers.
PNR has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as PNR would need 2.24 years to pay back of all of its debts.
PNR's Debt to FCF ratio of 2.24 is fine compared to the rest of the industry. PNR outperforms 79.23% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that PNR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, PNR perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 5.06 |
ROIC/WACC1.6
WACC8.71%
2.3 Liquidity
PNR has a Current Ratio of 1.60. This is a normal value and indicates that PNR is financially healthy and should not expect problems in meeting its short term obligations.
PNR's Current ratio of 1.60 is on the low side compared to the rest of the industry. PNR is outperformed by 73.08% of its industry peers.
PNR has a Quick Ratio of 1.60. 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 worse Quick ratio (0.91) than 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.35% over the past year.
The Earnings Per Share has been growing slightly by 6.55% on average over the past years.
PNR shows a decrease in Revenue. In the last year, the revenue decreased by -0.69%.
Measured over the past years, PNR shows a small growth in Revenue. The Revenue has been growing by 6.72% on average per year.
EPS 1Y (TTM)11.35%
EPS 3Y14.32%
EPS 5Y6.55%
EPS Q2Q%15.96%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y10.8%
Revenue growth 5Y6.72%
Sales Q2Q%-1.53%
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 10.57% on average per year.
Based on estimates for the next years, PNR will show a small growth in Revenue. The Revenue will grow by 3.39% on average per year.
EPS Next Y14.34%
EPS Next 2Y14.22%
EPS Next 3Y13.06%
EPS Next 5Y10.57%
Revenue Next Year-0.29%
Revenue Next 2Y1.89%
Revenue Next 3Y2.68%
Revenue Next 5Y3.39%
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 accelerating.
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 24.75, which indicates a rather expensive current valuation of PNR.
PNR's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PNR to the average of the S&P500 Index (27.20), we can say PNR is valued inline with the index average.
The Price/Forward Earnings ratio is 20.84, which indicates a rather expensive current valuation of PNR.
PNR's Price/Forward Earnings is on the same level as the industry average.
PNR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.75 | ||
| Fwd PE | 20.84 |
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 the industry average as 65.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.21 | ||
| EV/EBITDA | 18.36 |
4.3 Compensation for Growth
PNR's 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.
A more expensive valuation may be justified as PNR's earnings are expected to grow with 13.06% in the coming years.
PEG (NY)1.73
PEG (5Y)3.78
EPS Next 2Y14.22%
EPS Next 3Y13.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, PNR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.71, PNR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.99, PNR pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of PNR decreases each year by -3.77%.
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)-3.77%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
22.58% of the earnings are spent on dividend by PNR. This is a low number and sustainable payout ratio.
DP22.58%
EPS Next 2Y14.22%
EPS Next 3Y13.06%
PENTAIR PLC
NYSE:PNR (12/20/2024, 8:04:00 PM)
After market: 101.95 0 (0%)101.95
+0.97 (+0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.26%
Inst Owner Change-2.66%
Ins Owners0.65%
Ins Owner Change1.55%
Market Cap16.85B
Analysts76.8
Price Target112.79 (10.63%)
Short Float %1.23%
Short Ratio1.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Dividend Growth(5Y)-3.77%
DP22.58%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.19%
Min EPS beat(2)0.73%
Max EPS beat(2)5.64%
EPS beat(4)3
Avg EPS beat(4)2.43%
Min EPS beat(4)-0.24%
Max EPS beat(4)5.64%
EPS beat(8)7
Avg EPS beat(8)5.36%
EPS beat(12)11
Avg EPS beat(12)4.65%
EPS beat(16)15
Avg EPS beat(16)6.55%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)0.12%
Revenue beat(8)5
Avg Revenue beat(8)0.43%
Revenue beat(12)9
Avg Revenue beat(12)0.95%
Revenue beat(16)13
Avg Revenue beat(16)1.88%
PT rev (1m)9.53%
PT rev (3m)15.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.31%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-6.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.75 | ||
| Fwd PE | 20.84 | ||
| P/S | 4.11 | ||
| P/FCF | 23.21 | ||
| P/OCF | 21.09 | ||
| P/B | 4.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.36 |
EPS(TTM)4.12
EY4.04%
EPS(NY)4.89
Fwd EY4.8%
FCF(TTM)4.39
FCFY4.31%
OCF(TTM)4.83
OCFY4.74%
SpS24.78
BVpS21.18
TBVpS-4.75
PEG (NY)1.73
PEG (5Y)3.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 19.06% | ||
| ROCE | 15.86% | ||
| ROIC | 13.92% | ||
| ROICexc | 14.49% | ||
| ROICexgc | 74.07% | ||
| OM | 21.48% | ||
| PM (TTM) | 16.29% | ||
| GM | 39.71% | ||
| FCFM | 17.73% |
ROA(3y)9.53%
ROA(5y)9.14%
ROE(3y)19.98%
ROE(5y)19.04%
ROIC(3y)12.76%
ROIC(5y)12.4%
ROICexc(3y)13.09%
ROICexc(5y)12.72%
ROICexgc(3y)69.04%
ROICexgc(5y)65.82%
ROCE(3y)14.54%
ROCE(5y)14.13%
ROICexcg growth 3Y-3%
ROICexcg growth 5Y-3.81%
ROICexc growth 3Y0.39%
ROICexc growth 5Y-2.55%
OM growth 3Y6.6%
OM growth 5Y3.47%
PM growth 3Y8.48%
PM growth 5Y5.3%
GM growth 3Y1.84%
GM growth 5Y0.93%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.24 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 63.56% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.34% | ||
| Profit Quality | 108.82% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 5.06 |
F-Score8
WACC8.71%
ROIC/WACC1.6
Cap/Depr(3y)74.6%
Cap/Depr(5y)75.95%
Cap/Sales(3y)1.84%
Cap/Sales(5y)1.91%
Profit Quality(3y)81.69%
Profit Quality(5y)94.09%
High Growth Momentum
Growth
EPS 1Y (TTM)11.35%
EPS 3Y14.32%
EPS 5Y6.55%
EPS Q2Q%15.96%
EPS Next Y14.34%
EPS Next 2Y14.22%
EPS Next 3Y13.06%
EPS Next 5Y10.57%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y10.8%
Revenue growth 5Y6.72%
Sales Q2Q%-1.53%
Revenue Next Year-0.29%
Revenue Next 2Y1.89%
Revenue Next 3Y2.68%
Revenue Next 5Y3.39%
EBIT growth 1Y20.5%
EBIT growth 3Y18.11%
EBIT growth 5Y10.42%
EBIT Next Year20.18%
EBIT Next 3Y12.5%
EBIT Next 5Y9.31%
FCF growth 1Y180.45%
FCF growth 3Y2.03%
FCF growth 5Y5.38%
OCF growth 1Y132.45%
OCF growth 3Y2.58%
OCF growth 5Y5.85%