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Analyzing the Quality Characteristics of PENTAIR PLC (NYSE:PNR).

By Mill Chart

Last update: Feb 12, 2024

In this article we will dive into PENTAIR PLC (NYSE:PNR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PENTAIR PLC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Exploring Why NYSE:PNR Holds Appeal for Quality Investors.

  • The 5-year revenue growth of PENTAIR PLC has been remarkable, with 6.72% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a notable ROIC excluding cash and goodwill at 59.77%, PENTAIR PLC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 3.66, PENTAIR PLC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • PENTAIR PLC demonstrates consistent Profit Quality over the past 5 years, with a strong 94.09%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • PENTAIR PLC has consistently achieved strong EBIT growth over the past 5 years, with a 9.14% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • PENTAIR PLC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NYSE:PNR

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to PNR. PNR was compared to 133 industry peers in the Machinery industry. PNR has an excellent profitability rating, but there are concerns on its financial health. PNR has a decent growth rate and is not valued too expensively.

Our latest full fundamental report of PNR contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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