PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - NYSE:PNR - IE00BLS09M33 - Common Stock
109.73 USD
-0.97 (-0.88%)
109.73 USD
0 (0%)
PNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. PNR scores excellent on profitability, but 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
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.
PNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PNR has a better Return On Assets (9.68%) than 79.23% of its industry peers.
PNR has a Return On Equity of 17.29%. This is in the better half of the industry: PNR outperforms 80.00% of its industry peers.
PNR has a Return On Invested Capital of 13.90%. This is amongst the best in the industry. PNR outperforms 83.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PNR is above the industry average of 10.00%.
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
Looking at the Profit Margin, with a value of 15.84%, PNR belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
In the last couple of years the Profit Margin of PNR has grown nicely.
With an excellent Operating Margin value of 22.33%, PNR belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
PNR's Operating Margin has improved in the last couple of years.
The Gross Margin of PNR (40.87%) is better than 74.62% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PNR 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.
Compared to 1 year ago, PNR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.36 indicates that PNR is not in any danger for bankruptcy at the moment.
PNR has a Altman-Z score of 5.36. This is in the better half of the industry: PNR outperforms 80.00% of its industry peers.
The Debt to FCF ratio of PNR is 2.02, which is a good value as it means it would take PNR, 2.02 years of fcf income to pay off all of its debts.
PNR has a Debt to FCF ratio of 2.02. This is in the better half of the industry: PNR outperforms 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 56.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.36 |
ROIC/WACC1.53
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.46 indicates that PNR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, PNR is doing worse than 76.15% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that PNR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, PNR is doing worse than 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
PNR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.99%, which is quite good.
The Earnings Per Share has been growing by 12.72% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 8.71% on average over the next years. This is quite good.
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 Y12.88%
EPS Next 2Y11.37%
EPS Next 3Y10.49%
EPS Next 5Y8.71%
Revenue Next Year1.58%
Revenue Next 2Y2.77%
Revenue Next 3Y3.38%
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.
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
With a Price/Earnings ratio of 22.77, PNR is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as PNR.
PNR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
PNR is valuated rather expensively with a Price/Forward Earnings ratio of 20.43.
PNR's Price/Forward Earnings ratio is in line with the industry average.
PNR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PNR is on the same level as its industry peers.
PNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PNR is cheaper than 62.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.98 | ||
| EV/EBITDA | 18.88 |
4.3 Compensation for Growth
PNR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PNR may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)1.79
EPS Next 2Y11.37%
EPS Next 3Y10.49%
5. Dividend
5.1 Amount
PNR has a yearly dividend return of 0.90%, 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 0.90, PNR pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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
24.66% 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.
DP24.66%
EPS Next 2Y11.37%
EPS Next 3Y10.49%
109.73
-0.97 (-0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change0.1%
Ins Owners0.78%
Ins Owner Change7.98%
Market Cap17.99B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts79.2
Price Target118.33 (7.84%)
Short Float %1.48%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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%
PT rev (3m)7.12%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)0.09%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 20.43 | ||
| P/S | 4.36 | ||
| P/FCF | 22.98 | ||
| P/OCF | 21.15 | ||
| P/B | 4.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.88 |
EPS(TTM)4.82
EY4.39%
EPS(NY)5.37
Fwd EY4.89%
FCF(TTM)4.77
FCFY4.35%
OCF(TTM)5.19
OCFY4.73%
SpS25.18
BVpS23.07
TBVpS-5.09
PEG (NY)1.77
PEG (5Y)1.79
Graham Number50.02
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 | 5.36 |
F-Score6
WACC9.11%
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 Y12.88%
EPS Next 2Y11.37%
EPS Next 3Y10.49%
EPS Next 5Y8.71%
Revenue 1Y (TTM)0.83%
Revenue growth 3Y2.74%
Revenue growth 5Y6.66%
Sales Q2Q%2.88%
Revenue Next Year1.58%
Revenue Next 2Y2.77%
Revenue Next 3Y3.38%
Revenue Next 5Y3.56%
EBIT growth 1Y4.81%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year18.55%
EBIT Next 3Y11.4%
EBIT Next 5Y8.46%
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 9 / 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 12.88% in the next year.