Reasonable growth and debt and a high ROIC for PENTAIR PLC (NYSE:PNR).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PENTAIR PLC (NYSE:PNR) is suited for quality investing. Investors should of course do their own research, but we spotted PENTAIR PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of PNR highlighted

• PNR has demonstrated significant revenue growth over the past 5 years, with a 6.66% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• The ROIC excluding cash and goodwill of PNR stands at 57.98%, 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.
• PNR demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.4, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• PNR demonstrates consistent Profit Quality over the past 5 years, with a strong 99.67%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 15.22%, PNR showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, PNR showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What is the full fundamental picture of PNR telling us.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

PNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 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 correct valuation and a medium growth rate.

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.

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.