PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - NYSE:PNR - IE00BLS09M33 - Common Stock
112.23 USD
-0.13 (-0.12%)
112.23 USD
0 (0%)
PNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. PNR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, PNR is valued expensive at the moment.
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.
In the past 5 years PNR always reported a positive cash flow from operatings.
1.2 Ratios
PNR has a better Return On Assets (9.41%) than 77.52% of its industry peers.
PNR has a better Return On Equity (16.59%) than 79.84% of its industry peers.
PNR's Return On Invested Capital of 14.24% is amongst the best of the industry. PNR outperforms 85.27% 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 last Return On Invested Capital (14.24%) for PNR is above the 3 year average (12.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.41% | ||
| ROE | 16.59% | ||
| ROIC | 14.24% |
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
The Profit Margin of PNR (14.86%) is better than 89.15% of its industry peers.
PNR's Profit Margin has improved in the last couple of years.
PNR's Operating Margin of 21.91% is amongst the best of the industry. PNR outperforms 94.57% of its industry peers.
PNR's Operating Margin has improved in the last couple of years.
PNR has a Gross Margin of 41.20%. This is in the better half of the industry: PNR outperforms 77.52% of its industry peers.
PNR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.91% | ||
| PM (TTM) | 14.86% | ||
| GM | 41.2% |
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.
PNR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PNR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.66 indicates that PNR is not in any danger for bankruptcy at the moment.
PNR's Altman-Z score of 5.66 is amongst the best of the industry. PNR outperforms 82.95% of its industry peers.
The Debt to FCF ratio of PNR is 1.67, which is an excellent value as it means it would take PNR, only 1.67 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PNR (1.67) is better than 79.07% of its industry peers.
PNR has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.38, PNR is in line with its industry, outperforming 58.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 5.66 |
ROIC/WACC1.57
WACC9.07%
2.3 Liquidity
PNR has a Current Ratio of 1.45. This is a normal value and indicates that PNR is financially healthy and should not expect problems in meeting its short term obligations.
PNR has a Current ratio of 1.45. This is in the lower half of the industry: PNR underperforms 76.74% of its industry peers.
A Quick Ratio of 0.84 indicates that PNR may have some problems paying its short term obligations.
The Quick ratio of PNR (0.84) is worse than 72.87% of its industry peers.
PNR does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.63% 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 decreased by -0.25% in the past year.
Measured over the past years, PNR shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
EPS 1Y (TTM)17.63%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%13.93%
Revenue 1Y (TTM)-0.25%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
3.2 Future
PNR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.71% yearly.
Based on estimates for the next years, PNR will show a small growth in Revenue. The Revenue will grow by 3.56% on average per year.
EPS Next Y12.79%
EPS Next 2Y11.23%
EPS Next 3Y10.28%
EPS Next 5Y8.71%
Revenue Next Year1.48%
Revenue Next 2Y2.57%
Revenue Next 3Y3.22%
Revenue Next 5Y3.56%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 24.03, PNR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of PNR is on the same level as its industry peers.
PNR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.95 indicates a rather expensive valuation of PNR.
PNR's Price/Forward Earnings ratio is in line with the industry average.
PNR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
60.47% of the companies in the same industry are cheaper than PNR, based on the Enterprise Value to EBITDA ratio.
64.34% 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 | 21.98 | ||
| EV/EBITDA | 19.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PNR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PNR may justify a higher PE ratio.
PEG (NY)1.88
PEG (5Y)1.89
EPS Next 2Y11.23%
EPS Next 3Y10.28%
5. Dividend
5.1 Amount
PNR has a yearly dividend return of 0.89%, which is pretty low.
Compared to an average industry Dividend Yield of 1.78, PNR has a dividend in line with its industry peers.
With a Dividend Yield of 0.89, PNR pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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
26.01% of the earnings are spent on dividend by PNR. This is a low number and sustainable payout ratio.
The dividend of PNR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP26.01%
EPS Next 2Y11.23%
EPS Next 3Y10.28%
112.23
-0.13 (-0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change-2.56%
Ins Owners0.78%
Ins Owner Change7.98%
Market Cap18.40B
Analysts79.2
Price Target118.33 (5.44%)
Short Float %2.05%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.92
Dividend Growth(5Y)4.97%
DP26.01%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.77%
Min EPS beat(2)2.91%
Max EPS beat(2)8.64%
EPS beat(4)4
Avg EPS beat(4)4.62%
Min EPS beat(4)0.73%
Max EPS beat(4)8.64%
EPS beat(8)7
Avg EPS beat(8)4.25%
EPS beat(12)11
Avg EPS beat(12)5.55%
EPS beat(16)15
Avg EPS beat(16)4.94%
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-0.94%
Max Revenue beat(4)1.16%
Revenue beat(8)3
Avg Revenue beat(8)-0.09%
Revenue beat(12)7
Avg Revenue beat(12)0.27%
Revenue beat(16)11
Avg Revenue beat(16)0.81%
PT rev (1m)0.04%
PT rev (3m)9.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.56%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.03 | ||
| Fwd PE | 20.95 | ||
| P/S | 4.49 | ||
| P/FCF | 21.98 | ||
| P/OCF | 20.38 | ||
| P/B | 5.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.39 |
EPS(TTM)4.67
EY4.16%
EPS(NY)5.36
Fwd EY4.77%
FCF(TTM)5.11
FCFY4.55%
OCF(TTM)5.51
OCFY4.91%
SpS25.01
BVpS22.4
TBVpS-4.12
PEG (NY)1.88
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.41% | ||
| ROE | 16.59% | ||
| ROCE | 16.36% | ||
| ROIC | 14.24% | ||
| ROICexc | 14.62% | ||
| ROICexgc | 78.31% | ||
| OM | 21.91% | ||
| PM (TTM) | 14.86% | ||
| GM | 41.2% | ||
| FCFM | 20.42% |
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%
ROICexcg growth 3Y-5.5%
ROICexcg 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-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.67 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 57.12% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.08% | ||
| Profit Quality | 137.35% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 5.66 |
F-Score7
WACC9.07%
ROIC/WACC1.57
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)17.63%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%13.93%
EPS Next Y12.79%
EPS Next 2Y11.23%
EPS Next 3Y10.28%
EPS Next 5Y8.71%
Revenue 1Y (TTM)-0.25%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
Revenue Next Year1.48%
Revenue Next 2Y2.57%
Revenue Next 3Y3.22%
Revenue Next 5Y3.56%
EBIT growth 1Y5.31%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year18.55%
EBIT Next 3Y11.4%
EBIT Next 5Y8.46%
FCF growth 1Y87.67%
FCF growth 3Y7.78%
FCF growth 5Y18.64%
OCF growth 1Y71.47%
OCF growth 3Y7.73%
OCF growth 5Y16.78%