PENTAIR PLC (PNR) Stock Fundamental Analysis
NYSE:PNR - IE00BLS09M33 - Common Stock
108.3 USD
-0.3 (-0.28%)
Taking everything into account, PNR scores 6 out of 10 in our fundamental rating. PNR was compared to 127 industry peers in the Machinery industry. PNR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PNR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PNR was profitable.
In the past year PNR had a positive cash flow from operations.
PNR had positive earnings in each of the past 5 years.
Each year in the past 5 years PNR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PNR (9.41%) is better than 75.59% of its industry peers.
Looking at the Return On Equity, with a value of 16.59%, PNR is in the better half of the industry, outperforming 77.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.24%, PNR belongs to the top of the industry, outperforming 84.25% of the companies in the same industry.
PNR had an Average Return On Invested Capital over the past 3 years of 12.28%. This is in line with the industry average of 10.47%.
The 3 year average ROIC (12.28%) for PNR is below the current ROIC(14.24%), indicating increased profibility in the last year.
| 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
PNR has a better Profit Margin (14.86%) than 87.40% of its industry peers.
In the last couple of years the Profit Margin of PNR has grown nicely.
The Operating Margin of PNR (21.91%) is better than 93.70% of its industry peers.
PNR's Operating Margin has improved in the last couple of years.
PNR has a better Gross Margin (41.20%) than 76.38% of its industry peers.
In the last couple of years the Gross Margin of PNR has grown nicely.
| 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.
PNR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PNR has less shares outstanding
Compared to 1 year ago, PNR has an improved debt to assets ratio.
2.2 Solvency
PNR has an Altman-Z score of 5.53. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.53, PNR belongs to the best of the industry, outperforming 81.10% of the companies in the same industry.
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.
PNR's Debt to FCF ratio of 1.67 is fine compared to the rest of the industry. PNR outperforms 77.17% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that PNR is not too dependend on debt financing.
The Debt to Equity ratio of PNR (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 5.53 |
ROIC/WACC1.58
WACC9.02%
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 worse Current ratio (1.45) than 77.17% of its industry peers.
A Quick Ratio of 0.84 indicates that PNR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, PNR is doing worse than 73.23% of the companies in the same industry.
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.
The Earnings Per Share has been growing by 12.72% on average over the past years. This is quite good.
PNR shows a decrease in Revenue. In the last year, the revenue decreased by -0.25%.
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
The Earnings Per Share is expected to grow by 8.71% on average over the next years. This is quite good.
PNR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.56% yearly.
EPS Next Y12.68%
EPS Next 2Y11.17%
EPS Next 3Y10.16%
EPS Next 5Y8.71%
Revenue Next Year1.43%
Revenue Next 2Y2.54%
Revenue Next 3Y3.18%
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
The Price/Earnings ratio is 23.19, which indicates a rather expensive current valuation of PNR.
Compared to the rest of the industry, the Price/Earnings ratio of PNR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.24. PNR is around the same levels.
Based on the Price/Forward Earnings ratio of 20.24, the valuation of PNR can be described as rather expensive.
PNR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.81. PNR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
PNR's Enterprise Value to EBITDA ratio is in line with the industry average.
62.20% 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 | 21.21 | ||
| EV/EBITDA | 18.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)1.82
EPS Next 2Y11.17%
EPS Next 3Y10.16%
5. Dividend
5.1 Amount
PNR has a yearly dividend return of 0.96%, which is pretty low.
Compared to an average industry Dividend Yield of 1.87, PNR has a dividend in line with its industry peers.
With a Dividend Yield of 0.96, PNR pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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.
PNR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP26.01%
EPS Next 2Y11.17%
EPS Next 3Y10.16%
NYSE:PNR (8/25/2025, 10:50:55 AM)
108.3
-0.3 (-0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.3%
Inst Owner Change-2.55%
Ins Owners0.78%
Ins Owner Change7.95%
Market Cap17.75B
Analysts79.2
Price Target118.29 (9.22%)
Short Float %1.47%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)7.08%
PT rev (3m)13.29%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-3%
EPS NY rev (1m)1.72%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.19 | ||
| Fwd PE | 20.24 | ||
| P/S | 4.33 | ||
| P/FCF | 21.21 | ||
| P/OCF | 19.67 | ||
| P/B | 4.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.8 |
EPS(TTM)4.67
EY4.31%
EPS(NY)5.35
Fwd EY4.94%
FCF(TTM)5.11
FCFY4.71%
OCF(TTM)5.51
OCFY5.09%
SpS25.01
BVpS22.4
TBVpS-4.12
PEG (NY)1.83
PEG (5Y)1.82
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 | 5.53 |
F-Score7
WACC9.02%
ROIC/WACC1.58
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 Y12.68%
EPS Next 2Y11.17%
EPS Next 3Y10.16%
EPS Next 5Y8.71%
Revenue 1Y (TTM)-0.25%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%2.17%
Revenue Next Year1.43%
Revenue Next 2Y2.54%
Revenue Next 3Y3.18%
Revenue Next 5Y3.56%
EBIT growth 1Y5.31%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year18.45%
EBIT Next 3Y11.31%
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%