PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - NYSE:PNR - IE00BLS09M33 - Common Stock
104.79 USD
+3.31 (+3.26%)
104.79 USD
0 (0%)
Taking everything into account, PNR scores 6 out of 10 in our fundamental rating. PNR was compared to 130 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PNR had positive earnings in the past year.
In the past year PNR had a positive cash flow from operations.
In the past 5 years PNR has always been profitable.
Each year in the past 5 years PNR had a positive operating cash flow.
1.2 Ratios
PNR has a better Return On Assets (9.68%) than 81.54% of its industry peers.
PNR has a Return On Equity of 17.29%. This is in the better half of the industry: PNR outperforms 80.00% of its industry peers.
PNR has a Return On Invested Capital of 13.90%. This is amongst the best in the industry. PNR outperforms 83.85% 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 10.24%.
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 Profit Margin of 15.84%. This is amongst the best in the industry. PNR outperforms 90.77% of its industry peers.
PNR's Profit Margin has improved in the last couple of years.
PNR's Operating Margin of 22.33% is amongst the best of the industry. PNR outperforms 93.85% of its industry peers.
PNR's Operating Margin has improved in the last couple of years.
PNR's Gross Margin of 40.87% is fine compared to the rest of the industry. PNR outperforms 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.
The number of shares outstanding for PNR has been reduced compared to 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 5.05. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.05, PNR is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
The Debt to FCF ratio of PNR is 2.02, which is a good value as it means it would take PNR, 2.02 years of fcf income to pay off all of its debts.
PNR has a Debt to FCF ratio of 2.02. This is in the better half of the industry: PNR outperforms 77.69% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that PNR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.42, PNR perfoms like the industry average, outperforming 54.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.05 |
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.
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.
Looking at the Quick ratio, with a value of 0.82, PNR is doing worse than 74.62% of the companies in the same industry.
| 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.
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.
The Revenue has been growing slightly by 0.83% in the past year.
PNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
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.
Based on estimates for the next years, PNR will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
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.
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 21.74, which indicates a rather expensive current valuation of PNR.
PNR's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PNR to the average of the S&P500 Index (25.45), we can say PNR is valued inline with the index average.
The Price/Forward Earnings ratio is 19.23, which indicates a rather expensive current valuation of PNR.
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 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 19.23 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PNR.
60.77% of the companies in the same industry are more expensive than PNR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.95 | ||
| EV/EBITDA | 17.43 |
4.3 Compensation for Growth
The 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.
PEG (NY)1.54
PEG (5Y)1.71
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 1.87.
With a Dividend Yield of 0.94, PNR pays less dividend than the S&P500 average, which is at 2.45.
| 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
24.66% of the earnings are spent on dividend by PNR. This is a low number and sustainable payout ratio.
PNR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.66%
EPS Next 2Y12.18%
EPS Next 3Y11.01%
104.79
+3.31 (+3.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change4.12%
Ins Owners0.78%
Ins Owner Change0.95%
Market Cap17.18B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts78.4
Price Target124.45 (18.76%)
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)5.17%
PT rev (3m)5.21%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)1.2%
EPS NY rev (3m)3.04%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 19.23 | ||
| P/S | 4.16 | ||
| P/FCF | 21.95 | ||
| P/OCF | 20.2 | ||
| P/B | 4.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.43 |
EPS(TTM)4.82
EY4.6%
EPS(NY)5.45
Fwd EY5.2%
FCF(TTM)4.77
FCFY4.56%
OCF(TTM)5.19
OCFY4.95%
SpS25.18
BVpS23.07
TBVpS-5.09
PEG (NY)1.54
PEG (5Y)1.71
Graham Number50.02
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 | 5.05 |
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.