PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNR - IE00BLS09M33 - Common Stock
106.01 USD
+0.12 (+0.11%)
106.01 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PNR. PNR was compared to 130 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.
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
The Return On Assets of PNR (9.68%) is better than 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 77.69% of the companies in the same industry.
PNR has a better Return On Invested Capital (13.90%) than 83.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PNR is in line with the industry average of 10.46%.
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 88.46% of its industry peers.
PNR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.33%, PNR belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
In the last couple of years the Operating Margin of PNR has grown nicely.
With a decent Gross Margin value of 40.87%, PNR is doing good in the industry, outperforming 75.38% of the companies in the same industry.
PNR's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PNR is still creating some value.
The number of shares outstanding for PNR has been reduced compared to 1 year ago.
Compared to 5 years ago, PNR has less shares outstanding
The debt/assets ratio for PNR has been reduced compared to a year ago.
2.2 Solvency
PNR has an Altman-Z score of 5.19. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PNR (5.19) is better than 76.15% of its industry peers.
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.
PNR has a better Debt to FCF ratio (2.02) than 77.69% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that PNR is not too dependend on debt financing.
PNR has a Debt to Equity ratio of 0.42. This is comparable to the rest of the industry: PNR outperforms 55.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.19 |
ROIC/WACC1.53
WACC9.1%
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.
With a Current ratio value of 1.46, PNR is not doing good in the industry: 74.62% of the companies in the same industry are doing better.
PNR has a Quick Ratio of 1.46. This is a bad value and indicates that PNR is not financially healthy enough and could expect problems in meeting its short term obligations.
PNR has a worse Quick ratio (0.82) than 74.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.99% 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.
PNR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.83%.
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
PNR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
PNR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.97% yearly.
EPS Next Y14.24%
EPS Next 2Y12.18%
EPS Next 3Y11.01%
EPS Next 5Y9.23%
Revenue Next Year1.94%
Revenue Next 2Y3.28%
Revenue Next 3Y3.68%
Revenue Next 5Y3.97%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PNR is valuated rather expensively with a Price/Earnings ratio of 21.99.
65.38% of the companies in the same industry are more expensive than PNR, based on the Price/Earnings ratio.
PNR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
PNR is valuated rather expensively with a Price/Forward Earnings ratio of 19.45.
The rest of the industry has a similar Price/Forward Earnings ratio as PNR.
The average S&P500 Price/Forward Earnings ratio is at 23.78. PNR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 19.45 |
4.2 Price Multiples
PNR's Enterprise Value to EBITDA is on the same level as the industry average.
64.62% 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 | 22.16 | ||
| EV/EBITDA | 18.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.54
PEG (5Y)1.73
EPS Next 2Y12.18%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, PNR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.79, PNR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, PNR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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.
The dividend of PNR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP24.66%
EPS Next 2Y12.18%
EPS Next 3Y11.01%
106.01
+0.12 (+0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.93%
Inst Owner Change3.55%
Ins Owners0.74%
Ins Owner Change0.93%
Market Cap17.35B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts78.4
Price Target124.05 (17.02%)
Short Float %2.03%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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)-0.32%
PT rev (3m)4.87%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 19.45 | ||
| P/S | 4.2 | ||
| P/FCF | 22.16 | ||
| P/OCF | 20.4 | ||
| P/B | 4.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.1 |
EPS(TTM)4.82
EY4.55%
EPS(NY)5.45
Fwd EY5.14%
FCF(TTM)4.78
FCFY4.51%
OCF(TTM)5.2
OCFY4.9%
SpS25.23
BVpS23.11
TBVpS-5.1
PEG (NY)1.54
PEG (5Y)1.73
Graham Number50.07
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 | 5.19 |
F-Score6
WACC9.1%
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 Y14.24%
EPS Next 2Y12.18%
EPS Next 3Y11.01%
EPS Next 5Y9.23%
Revenue 1Y (TTM)0.83%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%2.88%
Revenue Next Year1.94%
Revenue Next 2Y3.28%
Revenue Next 3Y3.68%
Revenue Next 5Y3.97%
EBIT growth 1Y4.81%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year19.09%
EBIT Next 3Y12.06%
EBIT Next 5Y8.8%
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 8 / 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 14.24% in the next year.