PENTAIR PLC (PNR) Stock Fundamental Analysis
NYSE:PNR - New York Stock Exchange, Inc. - IE00BLS09M33 - Common Stock
Overall PNR gets a fundamental rating of 6 out of 10. We evaluated PNR against 131 industry peers in the Machinery industry. PNR has an excellent profitability rating, 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
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.
In the past 5 years PNR always reported a positive cash flow from operatings.
1.2 Ratios
PNR has a better Return On Assets (10.30%) than 81.89% of its industry peers.
PNR has a Return On Equity of 19.06%. This is amongst the best in the industry. PNR outperforms 80.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.92%, PNR belongs to the top of the industry, outperforming 80.31% 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 11.19%.
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
PNR has a Profit Margin of 16.29%. This is amongst the best in the industry. PNR outperforms 92.13% of its industry peers.
In the last couple of years the Profit Margin of PNR has grown nicely.
PNR has a Operating Margin of 21.48%. This is amongst the best in the industry. PNR outperforms 91.34% of its industry peers.
PNR's Operating Margin has improved in the last couple of years.
The Gross Margin of PNR (39.71%) is better than 74.02% of its industry peers.
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.
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 5.18 indicates that PNR is not in any danger for bankruptcy at the moment.
PNR has a better Altman-Z score (5.18) than 74.02% 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.
With a decent Debt to FCF ratio value of 2.24, PNR is doing good in the industry, outperforming 78.74% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that PNR is not too dependend on debt financing.
PNR has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 5.18 |
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 has a Current ratio of 1.60. This is in the lower half of the industry: PNR underperforms 72.44% of its industry peers.
A Quick Ratio of 0.91 indicates that PNR may have some problems paying its short term obligations.
PNR has a Quick ratio of 0.91. This is in the lower half of the industry: PNR underperforms 74.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
PNR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.35%, which is quite good.
Measured over the past 5 years, PNR shows a small growth in Earnings Per Share. The EPS has been growing by 6.55% on average per year.
The Revenue has decreased by -0.69% in the past year.
PNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.72% yearly.
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
The Earnings Per Share is expected to grow by 10.48% on average over the next years. This is quite good.
Based on estimates for the next years, PNR will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y14.34%
EPS Next 2Y14.22%
EPS Next 3Y13.06%
EPS Next 5Y10.48%
Revenue Next Year-0.29%
Revenue Next 2Y1.84%
Revenue Next 3Y2.67%
Revenue Next 5Y3.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 25.57, PNR can be considered very expensive at the moment.
PNR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. PNR is around the same levels.
With a Price/Forward Earnings ratio of 21.53, PNR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, PNR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 21.53 |
4.2 Price Multiples
PNR's Enterprise Value to EBITDA is on the same level as the industry average.
PNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PNR is cheaper than 65.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.98 | ||
| EV/EBITDA | 18.93 |
4.3 Compensation for Growth
The 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.
PNR's earnings are expected to grow with 13.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.78
PEG (5Y)3.9
EPS Next 2Y14.22%
EPS Next 3Y13.06%
5. Dividend
5.1 Amount
PNR has a yearly dividend return of 0.97%, which is pretty low.
Compared to an average industry Dividend Yield of 1.65, PNR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.97, PNR pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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.
PNR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 (1/21/2025, 8:21:12 PM)
After market: 105.35 0 (0%)105.35
+2.33 (+2.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.26%
Inst Owner Change0.03%
Ins Owners0.65%
Ins Owner Change0.34%
Market Cap17.41B
Analysts76.8
Price Target114.32 (8.51%)
Short Float %1.59%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend0.88
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)1.36%
PT rev (3m)16.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 21.53 | ||
| P/S | 4.25 | ||
| P/FCF | 23.98 | ||
| P/OCF | 21.79 | ||
| P/B | 4.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.93 |
EPS(TTM)4.12
EY3.91%
EPS(NY)4.89
Fwd EY4.64%
FCF(TTM)4.39
FCFY4.17%
OCF(TTM)4.83
OCFY4.59%
SpS24.78
BVpS21.18
TBVpS-4.75
PEG (NY)1.78
PEG (5Y)3.9
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 | 5.18 |
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 5Y10.48%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y10.8%
Revenue growth 5Y6.72%
Sales Q2Q%-1.53%
Revenue Next Year-0.29%
Revenue Next 2Y1.84%
Revenue Next 3Y2.67%
Revenue Next 5Y3.32%
EBIT growth 1Y20.5%
EBIT growth 3Y18.11%
EBIT growth 5Y10.42%
EBIT Next Year20.06%
EBIT Next 3Y12.53%
EBIT Next 5Y9.24%
FCF growth 1Y180.45%
FCF growth 3Y2.03%
FCF growth 5Y5.38%
OCF growth 1Y132.45%
OCF growth 3Y2.58%
OCF growth 5Y5.85%