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. PNR scores excellent on profitability, but there are some minor concerns on its financial health. PNR has a decent growth rate and is not valued too expensively.
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
The Return On Assets of PNR (9.68%) is better than 81.54% of its industry peers.
PNR's Return On Equity of 17.29% is fine compared to the rest of the industry. PNR outperforms 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.90%, PNR belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PNR 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
With an excellent Profit Margin value of 15.84%, PNR belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
In the last couple of years the Profit Margin of PNR has grown nicely.
PNR has a Operating Margin of 22.33%. This is amongst the best in the industry. PNR outperforms 93.85% of its industry peers.
PNR's Operating Margin has improved in the last couple of years.
PNR has a better Gross Margin (40.87%) than 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
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
PNR has an Altman-Z score of 5.17. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
PNR has a better Altman-Z score (5.17) than 76.92% 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 has a better Debt to FCF ratio (2.02) than 78.46% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that PNR is not too dependend on debt financing.
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 | 5.17 |
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.
A Quick Ratio of 0.82 indicates that PNR may have some problems paying 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.
The Revenue has been growing slightly by 0.83% in the past 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
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
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
A Price/Earnings ratio of 21.83 indicates a rather expensive valuation of PNR.
Based on the Price/Earnings ratio, PNR is valued a bit cheaper than 60.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. PNR is around the same levels.
With a Price/Forward Earnings ratio of 19.31, PNR is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as PNR.
PNR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| 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 63.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22 | ||
| EV/EBITDA | 17.99 |
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
With a yearly dividend of 0.94%, PNR is not a good candidate for dividend investing.
PNR's Dividend Yield is a higher than the industry average which is at 1.90.
With a Dividend Yield of 0.94, PNR pays less dividend than the S&P500 average, which is at 2.34.
| 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 paid a dividend for at least 10 years, which is 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 Change3.49%
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)0.03%
PT rev (3m)5.24%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)1.11%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0%
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 | 4.17 | ||
| P/FCF | 22 | ||
| P/OCF | 20.25 | ||
| P/B | 4.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.99 |
EPS(TTM)4.82
EY4.58%
EPS(NY)5.45
Fwd EY5.18%
FCF(TTM)4.78
FCFY4.54%
OCF(TTM)5.2
OCFY4.94%
SpS25.23
BVpS23.11
TBVpS-5.1
PEG (NY)1.54
PEG (5Y)1.72
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 | 5.17 |
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.