PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - NYSE:PNR - IE00BLS09M33 - Common Stock
104.33 USD
-2.42 (-2.27%)
104.33 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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years PNR has been profitable.
PNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.68%, PNR belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
The Return On Equity of PNR (17.29%) is better than 80.00% of its industry peers.
PNR's Return On Invested Capital of 13.90% is amongst the best of the industry. PNR outperforms 83.85% of its industry peers.
PNR had an Average Return On Invested Capital over the past 3 years of 12.28%. This is above the industry average of 10.25%.
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 Profit Margin of 15.84%. This is amongst the best in the industry. PNR outperforms 90.77% of its industry peers.
PNR's Profit Margin has improved in the last couple of years.
The Operating Margin of PNR (22.33%) is better than 93.85% of its industry peers.
PNR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 40.87%, PNR is in the better half of the industry, outperforming 76.15% of the companies in the same industry.
In the last couple of years the Gross Margin of PNR has grown nicely.
| 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.
Compared to 1 year ago, PNR has less shares outstanding
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 5.15 indicates that PNR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.15, PNR is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.02, PNR is doing good in the industry, outperforming 77.69% of the companies in the same industry.
PNR has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PNR (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5.15 |
ROIC/WACC1.53
WACC9.1%
2.3 Liquidity
A Current Ratio of 1.46 indicates that PNR should not have too much problems paying its short term obligations.
PNR has a worse Current ratio (1.46) than 75.38% of its industry peers.
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's Quick ratio of 0.82 is on the low side compared to the rest of the industry. PNR is outperformed by 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.
The Earnings Per Share has been growing by 12.72% on average over the past years. This is quite good.
Looking at the last year, PNR shows a small growth in Revenue. The Revenue has grown by 0.83% in the last year.
The Revenue has been growing slightly by 6.66% on average over the past years.
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 9.23% 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 3.97% yearly.
EPS Next Y14.14%
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
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
PNR is valuated rather expensively with a Price/Earnings ratio of 21.65.
The rest of the industry has a similar Price/Earnings ratio as PNR.
The average S&P500 Price/Earnings ratio is at 25.89. PNR is around the same levels.
A Price/Forward Earnings ratio of 19.14 indicates a rather expensive valuation of PNR.
PNR's Price/Forward Earnings ratio is in line with the industry average.
PNR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PNR.
62.31% 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 | 21.85 | ||
| EV/EBITDA | 17.88 |
4.3 Compensation for Growth
The 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)1.53
PEG (5Y)1.7
EPS Next 2Y12.18%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, PNR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.87, PNR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, PNR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of PNR has a limited annual growth rate of 4.97%.
PNR has paid a dividend for at least 10 years, which is 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 2Y12.18%
EPS Next 3Y11.01%
104.33
-2.42 (-2.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.87%
Inst Owner Change4.12%
Ins Owners0.78%
Ins Owner Change0.95%
Market Cap17.10B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts78.4
Price Target124.45 (19.28%)
Short Float %1.17%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)5.17%
PT rev (3m)5.21%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)1.2%
EPS NY rev (3m)3.04%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.14 | ||
| P/S | 4.14 | ||
| P/FCF | 21.85 | ||
| P/OCF | 20.11 | ||
| P/B | 4.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.88 |
EPS(TTM)4.82
EY4.62%
EPS(NY)5.45
Fwd EY5.22%
FCF(TTM)4.77
FCFY4.58%
OCF(TTM)5.19
OCFY4.97%
SpS25.18
BVpS23.07
TBVpS-5.09
PEG (NY)1.53
PEG (5Y)1.7
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 | 5.15 |
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 Y14.14%
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 Year18.55%
EBIT Next 3Y11.4%
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 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 14.14% in the next year.