Is PENTAIR PLC (NYSE:PNR) suited for quality investing?

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.

Looking into the quality metrics of PENTAIR PLC

• PENTAIR PLC has achieved substantial revenue growth over the past 5 years, with a 6.72% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of PENTAIR PLC stands at 61.04%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• PENTAIR PLC maintains a healthy Debt/Free Cash Flow Ratio of 3.66, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• PENTAIR PLC exhibits impressive Profit Quality (5-year) with a 94.09% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• PENTAIR PLC has consistently achieved strong EBIT growth over the past 5 years, with a 10.42% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• PENTAIR PLC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

PNR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. While PNR has a great profitability rating, there are some minor concerns on its financial health. PNR is not valued too expensively and it also shows a decent growth rate.

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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.