PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - NYSE:PNR - IE00BLS09M33 - Common Stock
107.14 USD
-0.48 (-0.45%)
107.14 USD
0 (0%)
PNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. While PNR belongs to the best of the industry regarding profitability, 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.
Each year in the past 5 years PNR has been profitable.
Each year in the past 5 years PNR had a positive operating cash flow.
1.2 Ratios
PNR's Return On Assets of 9.68% is fine compared to the rest of the industry. PNR outperforms 79.23% of its industry peers.
Looking at the Return On Equity, with a value of 17.29%, PNR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
PNR has a better Return On Invested Capital (13.90%) than 83.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PNR is above the industry average of 10.00%.
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 90.77% of its industry peers.
In the last couple of years the Profit Margin of PNR has grown nicely.
PNR has a better Operating Margin (22.33%) than 94.62% of its industry peers.
In the last couple of years the Operating Margin of PNR has grown nicely.
PNR's Gross Margin of 40.87% is fine compared to the rest of the industry. PNR outperforms 74.62% of its industry peers.
In the last couple of years the Gross Margin of PNR has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PNR 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.
PNR has a better debt/assets ratio than last year.
2.2 Solvency
PNR has an Altman-Z score of 5.24. 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 5.24, PNR is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.02, PNR is doing good in the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that PNR is not too dependend on debt financing.
The Debt to Equity ratio of PNR (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.24 |
ROIC/WACC1.53
WACC9.11%
2.3 Liquidity
PNR has a Current Ratio of 1.46. This is a normal value and indicates that PNR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.46, PNR is doing worse than 75.38% 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.
PNR has a worse Quick ratio (0.82) than 75.38% 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.
The Earnings Per Share has been growing by 12.72% on average over the past years. This is quite good.
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
Based on estimates for the next years, PNR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.71% on average per year.
The Revenue is expected to grow by 3.56% on average over the next years.
EPS Next Y12.88%
EPS Next 2Y11.37%
EPS Next 3Y10.49%
EPS Next 5Y8.71%
Revenue Next Year1.58%
Revenue Next 2Y2.77%
Revenue Next 3Y3.38%
Revenue Next 5Y3.56%
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
Based on the Price/Earnings ratio of 22.23, the valuation of PNR can be described as rather expensive.
Based on the Price/Earnings ratio, PNR is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.19, PNR is valued at the same level.
The Price/Forward Earnings ratio is 19.95, 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 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.23 | ||
| Fwd PE | 19.95 |
4.2 Price Multiples
PNR's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, PNR is valued a bit cheaper than 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.44 | ||
| EV/EBITDA | 18.32 |
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.
PEG (NY)1.73
PEG (5Y)1.75
EPS Next 2Y11.37%
EPS Next 3Y10.49%
5. Dividend
5.1 Amount
PNR has a yearly dividend return of 0.92%, which is pretty low.
PNR's Dividend Yield is comparable with the industry average which is at 1.79.
With a Dividend Yield of 0.92, PNR pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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.
PNR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
PNR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP24.66%
EPS Next 2Y11.37%
EPS Next 3Y10.49%
107.14
-0.48 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change0.14%
Ins Owners0.78%
Ins Owner Change0.6%
Market Cap17.56B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts79.2
Price Target124.45 (16.16%)
Short Float %1.17%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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%
PT rev (3m)7.12%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)0.08%
EPS NY rev (3m)1.9%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.23 | ||
| Fwd PE | 19.95 | ||
| P/S | 4.25 | ||
| P/FCF | 22.44 | ||
| P/OCF | 20.65 | ||
| P/B | 4.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.32 |
EPS(TTM)4.82
EY4.5%
EPS(NY)5.37
Fwd EY5.01%
FCF(TTM)4.77
FCFY4.46%
OCF(TTM)5.19
OCFY4.84%
SpS25.18
BVpS23.07
TBVpS-5.09
PEG (NY)1.73
PEG (5Y)1.75
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 | 5.24 |
F-Score6
WACC9.11%
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 Y12.88%
EPS Next 2Y11.37%
EPS Next 3Y10.49%
EPS Next 5Y8.71%
Revenue 1Y (TTM)0.83%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%2.88%
Revenue Next Year1.58%
Revenue Next 2Y2.77%
Revenue Next 3Y3.38%
Revenue Next 5Y3.56%
EBIT growth 1Y4.81%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year18.55%
EBIT Next 3Y11.4%
EBIT Next 5Y8.46%
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 12.88% in the next year.