PENTAIR PLC (PNR) Stock Fundamental Analysis
NYSE:PNR - New York Stock Exchange, Inc. - IE00BLS09M33 - Common Stock - Currency: USD
Overall PNR gets a fundamental rating of 6 out of 10. We evaluated PNR 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 is quite expensive at the moment. It does show a decent growth rate.
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.
PNR had positive earnings in each of the past 5 years.
PNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.59%, PNR belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
The Return On Equity of PNR (17.81%) is better than 78.91% of its industry peers.
PNR's Return On Invested Capital of 13.53% is amongst the best of the industry. PNR outperforms 82.81% 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 10.31%.
The last Return On Invested Capital (13.53%) for PNR is above the 3 year average (12.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 17.81% | ||
| ROIC | 13.53% |
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
With an excellent Profit Margin value of 15.87%, PNR belongs to the best of the industry, outperforming 89.84% of the companies in the same industry.
In the last couple of years the Profit Margin of PNR has grown nicely.
Looking at the Operating Margin, with a value of 22.25%, PNR belongs to the top of the industry, outperforming 92.97% of the companies in the same industry.
In the last couple of years the Operating Margin of PNR has grown nicely.
PNR's Gross Margin of 40.49% is fine compared to the rest of the industry. PNR outperforms 74.22% of its industry peers.
PNR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.25% | ||
| PM (TTM) | 15.87% | ||
| GM | 40.49% |
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.
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
The Debt to FCF ratio of PNR is 2.40, which is a good value as it means it would take PNR, 2.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PNR (2.40) is better than 68.75% of its industry peers.
PNR has a Debt/Equity ratio of 0.51. This is a neutral value indicating PNR is somewhat dependend on debt financing.
PNR's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. PNR outperforms 45.31% of its industry peers.
Although PNR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | N/A |
ROIC/WACC1.5
WACC8.99%
2.3 Liquidity
PNR has a Current Ratio of 1.89. 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 1.89, PNR perfoms like the industry average, outperforming 41.41% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that PNR should not have too much problems paying its short term obligations.
The Quick ratio of PNR (1.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
PNR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.58%, which is quite good.
PNR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
Looking at the last year, PNR shows a decrease in Revenue. The Revenue has decreased by -0.42% in the last 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)19.58%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%20.21%
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%-0.67%
3.2 Future
Based on estimates for the next years, PNR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.05% on average per year.
Based on estimates for the next years, PNR will show a small growth in Revenue. The Revenue will grow by 4.01% on average per year.
EPS Next Y10.54%
EPS Next 2Y10.42%
EPS Next 3Y9.62%
EPS Next 5Y9.05%
Revenue Next Year1.14%
Revenue Next 2Y2.6%
Revenue Next 3Y3.17%
Revenue Next 5Y4.01%
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 21.58, PNR is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as PNR.
PNR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.47, the valuation of PNR can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as PNR.
PNR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 18.47 |
4.2 Price Multiples
PNR's Enterprise Value to EBITDA ratio is in line with the industry average.
PNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PNR is cheaper than 60.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.02 | ||
| EV/EBITDA | 17.72 |
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.
PNR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)1.7
EPS Next 2Y10.42%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
PNR has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.83, PNR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, PNR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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.
As PNR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.97%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
PNR pays out 24.03% 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.
DP24.03%
EPS Next 2Y10.42%
EPS Next 3Y9.62%
NYSE:PNR (5/21/2025, 3:52:08 PM)
97.53
-2.24 (-2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.37%
Inst Owner Change0.3%
Ins Owners0.65%
Ins Owner Change15.36%
Market Cap16.05B
Analysts79.2
Price Target104.41 (7.05%)
Short Float %2.2%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.92
Dividend Growth(5Y)4.97%
DP24.03%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.39%
Min EPS beat(2)6.19%
Max EPS beat(2)10.6%
EPS beat(4)4
Avg EPS beat(4)5.79%
Min EPS beat(4)0.73%
Max EPS beat(4)10.6%
EPS beat(8)7
Avg EPS beat(8)4.99%
EPS beat(12)11
Avg EPS beat(12)5.59%
EPS beat(16)15
Avg EPS beat(16)5.15%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.94%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-0.94%
Max Revenue beat(4)1.16%
Revenue beat(8)4
Avg Revenue beat(8)0.16%
Revenue beat(12)8
Avg Revenue beat(12)0.32%
Revenue beat(16)12
Avg Revenue beat(16)0.97%
PT rev (1m)-9.88%
PT rev (3m)-9.31%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-0.75%
EPS NY rev (1m)0.39%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 18.47 | ||
| P/S | 3.94 | ||
| P/FCF | 21.02 | ||
| P/OCF | 19.21 | ||
| P/B | 4.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.72 |
EPS(TTM)4.52
EY4.63%
EPS(NY)5.28
Fwd EY5.41%
FCF(TTM)4.64
FCFY4.76%
OCF(TTM)5.08
OCFY5.21%
SpS24.77
BVpS22.08
TBVpS-4.25
PEG (NY)2.05
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 17.81% | ||
| ROCE | 15.54% | ||
| ROIC | 13.53% | ||
| ROICexc | 13.86% | ||
| ROICexgc | 57.98% | ||
| OM | 22.25% | ||
| PM (TTM) | 15.87% | ||
| GM | 40.49% | ||
| FCFM | 18.73% |
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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | 62.41% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.74% | ||
| Profit Quality | 118.01% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | N/A |
F-Score7
WACC8.99%
ROIC/WACC1.5
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)19.58%
EPS 3Y8.29%
EPS 5Y12.72%
EPS Q2Q%20.21%
EPS Next Y10.54%
EPS Next 2Y10.42%
EPS Next 3Y9.62%
EPS Next 5Y9.05%
Revenue 1Y (TTM)-0.42%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%-0.67%
Revenue Next Year1.14%
Revenue Next 2Y2.6%
Revenue Next 3Y3.17%
Revenue Next 5Y4.01%
EBIT growth 1Y14.13%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year18.87%
EBIT Next 3Y11.28%
EBIT Next 5Y9.27%
FCF growth 1Y151.07%
FCF growth 3Y7.78%
FCF growth 5Y18.64%
OCF growth 1Y115.2%
OCF growth 3Y7.73%
OCF growth 5Y16.78%