PENTAIR PLC (PNR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PNR - IE00BLS09M33 - Common Stock
103.06 USD
+3 (+3%)
103.06 USD
0 (0%)
Overall PNR gets a fundamental rating of 6 out of 10. We evaluated PNR against 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 correct valuation and a medium 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.
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
PNR has a Return On Assets of 9.68%. This is in the better half of the industry: PNR outperforms 79.55% of its industry peers.
PNR has a better Return On Equity (17.29%) than 78.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.90%, PNR belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PNR is above the industry average of 10.21%.
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
With an excellent Profit Margin value of 15.84%, PNR belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
In the last couple of years the Profit Margin of PNR has grown nicely.
PNR has a Operating Margin of 22.33%. This is amongst the best in the industry. PNR outperforms 93.94% of its industry peers.
In the last couple of years the Operating Margin of PNR has grown nicely.
PNR has a Gross Margin of 40.87%. This is in the better half of the industry: PNR outperforms 76.52% of its industry peers.
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.
The debt/assets ratio for PNR has been reduced compared to a year ago.
2.2 Solvency
PNR has an Altman-Z score of 5.00. This indicates that PNR is financially healthy and has little risk of bankruptcy at the moment.
PNR has a better Altman-Z score (5.00) than 73.48% of its industry peers.
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.
The Debt to FCF ratio of PNR (2.02) is better than 77.27% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that PNR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.42, PNR perfoms like the industry average, outperforming 56.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 5 |
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 73.48% of its industry peers.
A Quick Ratio of 0.82 indicates that PNR may have some problems paying its short term obligations.
The Quick ratio of PNR (0.82) is worse than 75.00% 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.
PNR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.83%.
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
Based on estimates for the next years, PNR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.
The Revenue is expected to grow by 3.97% on average over the next years.
EPS Next Y14.23%
EPS Next 2Y12.14%
EPS Next 3Y11.05%
EPS Next 5Y9.23%
Revenue Next Year1.94%
Revenue Next 2Y3.27%
Revenue Next 3Y3.69%
Revenue Next 5Y3.97%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 21.38, the valuation of PNR can be described as rather expensive.
Based on the Price/Earnings ratio, PNR is valued a bit cheaper than the industry average as 71.21% of the companies are valued more expensively.
PNR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.00.
The Price/Forward Earnings ratio is 18.93, which indicates a rather expensive current valuation of PNR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PNR indicates a somewhat cheap valuation: PNR is cheaper than 65.15% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PNR to the average of the S&P500 Index (23.70), we can say PNR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 18.93 |
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.
68.94% 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 | 21.55 | ||
| EV/EBITDA | 17.18 |
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)1.5
PEG (5Y)1.68
EPS Next 2Y12.14%
EPS Next 3Y11.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, PNR has a reasonable but not impressive dividend return.
PNR's Dividend Yield is a higher than the industry average which is at 0.85.
With a Dividend Yield of 1.04, PNR pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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.
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
PNR pays out 24.66% 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.
DP24.66%
EPS Next 2Y12.14%
EPS Next 3Y11.05%
103.06
+3 (+3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.05%
Inst Owner Change0%
Ins Owners0.74%
Ins Owner Change0.95%
Market Cap16.86B
Revenue(TTM)4.13B
Net Income(TTM)654.10M
Analysts78.4
Price Target124.86 (21.15%)
Short Float %2.16%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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)0.3%
PT rev (3m)5.52%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.38 | ||
| Fwd PE | 18.93 | ||
| P/S | 4.09 | ||
| P/FCF | 21.55 | ||
| P/OCF | 19.83 | ||
| P/B | 4.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.18 |
EPS(TTM)4.82
EY4.68%
EPS(NY)5.45
Fwd EY5.28%
FCF(TTM)4.78
FCFY4.64%
OCF(TTM)5.2
OCFY5.04%
SpS25.23
BVpS23.11
TBVpS-5.1
PEG (NY)1.5
PEG (5Y)1.68
Graham Number50.07
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 |
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 Y14.23%
EPS Next 2Y12.14%
EPS Next 3Y11.05%
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 2Y3.27%
Revenue Next 3Y3.69%
Revenue Next 5Y3.97%
EBIT growth 1Y4.81%
EBIT growth 3Y11.63%
EBIT growth 5Y15.22%
EBIT Next Year19.09%
EBIT Next 3Y12.11%
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.
What is the valuation status for PNR stock?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the expected EPS growth for PNR stock?
The Earnings per Share (EPS) of PENTAIR PLC (PNR) is expected to grow by 14.23% in the next year.