PENTAIR PLC (PNR)
IE00BLS09M33 - Common Stock
Taking everything into account, PNR scores 5 out of 10 in our fundamental rating. PNR was compared to 132 industry peers in the Machinery industry. While PNR has a great profitability rating, there are some minor concerns on its financial health. PNR has a decent growth rate and is not valued too expensively.
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's Return On Assets of 9.29% is fine compared to the rest of the industry. PNR outperforms 74.42% of its industry peers.
PNR's Return On Equity of 18.82% is fine compared to the rest of the industry. PNR outperforms 79.84% of its industry peers.
PNR has a Return On Invested Capital of 11.90%. This is in the better half of the industry: PNR outperforms 75.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PNR is above the industry average of 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | 18.82% | ||
| ROIC | 11.9% |
ROA(3y)9.53%
ROA(5y)9.14%
ROE(3y)19.98%
ROE(5y)19.04%
ROIC(3y)12.76%
ROIC(5y)12.4%
1.3 Margins
PNR has a better Profit Margin (15.30%) than 88.37% of its industry peers.
PNR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 19.28%, PNR belongs to the best of the industry, outperforming 89.15% of the companies in the same industry.
PNR's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 37.32%, PNR is doing good in the industry, outperforming 74.42% of the companies in the same industry.
PNR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.28% | ||
| PM (TTM) | 15.3% | ||
| GM | 37.32% |
OM growth 3Y6.6%
OM growth 5Y3.47%
PM growth 3Y8.48%
PM growth 5Y5.3%
GM growth 3Y1.84%
GM growth 5Y0.93%
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 increased compared to 1 year ago.
The number of shares outstanding for PNR has been reduced compared to 5 years ago.
PNR has a better debt/assets ratio than last year.
2.2 Solvency
PNR has an Altman-Z score of 3.87. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
PNR has a better Altman-Z score (3.87) than 65.12% of its industry peers.
PNR has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as PNR would need 3.86 years to pay back of all of its debts.
PNR has a Debt to FCF ratio of 3.86. This is comparable to the rest of the industry: PNR outperforms 59.69% of its industry peers.
PNR has a Debt/Equity ratio of 0.63. This is a neutral value indicating PNR is somewhat dependend on debt financing.
PNR's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. PNR is outperformed by 62.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 3.87 |
ROIC/WACC1.43
WACC8.3%
2.3 Liquidity
PNR has a Current Ratio of 1.90. 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 (1.90) which is in line with its industry peers.
A Quick Ratio of 1.17 indicates that PNR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, PNR is in line with its industry, outperforming 47.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
PNR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.07%.
The Earnings Per Share has been growing slightly by 6.55% on average over the past years.
Looking at the last year, PNR shows a decrease in Revenue. The Revenue has decreased by -1.39% in the last year.
Measured over the past years, PNR shows a small growth in Revenue. The Revenue has been growing by 6.72% on average per year.
EPS 1Y (TTM)1.07%
EPS 3Y14.32%
EPS 5Y6.55%
EPS growth Q2Q3.3%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y10.8%
Revenue growth 5Y6.72%
Revenue growth Q2Q-1.11%
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 9.59% on average per year.
PNR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.16% yearly.
EPS Next Y13.34%
EPS Next 2Y13.03%
EPS Next 3Y12.31%
EPS Next 5Y9.59%
Revenue Next Year3.12%
Revenue Next 2Y3.89%
Revenue Next 3Y4.09%
Revenue Next 5Y4.16%
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 accelerating.
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 21.66, PNR is valued on the expensive side.
Based on the Price/Earnings ratio, PNR is valued a bit cheaper than the industry average as 60.47% of the companies are valued more expensively.
PNR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.02, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.09 indicates a rather expensive valuation of PNR.
Based on the Price/Forward Earnings ratio, PNR is valued a bit cheaper than the industry average as 65.89% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PNR to the average of the S&P500 Index (20.58), we can say PNR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 17.09 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.2 | ||
| EV/EBITDA | 16.81 |
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.
A more expensive valuation may be justified as PNR's earnings are expected to grow with 12.31% in the coming years.
PEG (NY)1.62
PEG (5Y)3.3
EPS Next 2Y13.03%
EPS Next 3Y12.31%
5. Dividend
5.1 Amount
PNR has a Yearly Dividend Yield of 1.17%.
Compared to an average industry Dividend Yield of 1.72, PNR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, PNR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of PNR decreases each year by -3.77%.
PNR has paid a dividend for at least 10 years, which is a reliable track record.
PNR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.77%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
PNR pays out 23.47% of its income as dividend. This is a sustainable payout ratio.
DP23.47%
EPS Next 2Y13.03%
EPS Next 3Y12.31%
PENTAIR PLC
NYSE:PNR (5/6/2024, 4:05:00 PM)
After market: 81.88 0 (0%)81.88
+2.27 (+2.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.66 | ||
| Fwd PE | 17.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.62
PEG (5Y)3.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.29% | ||
| ROE | 18.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.28% | ||
| PM (TTM) | 15.3% | ||
| GM | 37.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.07%
EPS 3Y14.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y10.8%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y