Pentair plc
Pentair plc Fundamental Analysis
Pentair plc (PNR) shows moderate financial fundamentals with a PE ratio of 25.52, profit margin of 15.66%, and ROE of 17.48%. The company generates $4.2B in annual revenue with weak year-over-year growth of -0.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PNR's fundamental strength across five key dimensions:
Efficiency Score
WeakPNR struggles to generate sufficient returns from assets.
Valuation Score
WeakPNR trades at a premium to fair value.
Growth Score
WeakPNR faces weak or negative growth trends.
Financial Health Score
ExcellentPNR maintains a strong and stable balance sheet.
Profitability Score
ExcellentPNR achieves industry-leading margins.
Key Financial Metrics
Is PNR Expensive or Cheap?
P/E Ratio
PNR trades at 25.52 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PNR's PEG of 101.57 indicates potential overvaluation.
Price to Book
The market values Pentair plc at 4.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.08 times EBITDA. This signals the market has high growth expectations.
How Well Does PNR Make Money?
Net Profit Margin
For every $100 in sales, Pentair plc keeps $15.66 as profit after all expenses.
Operating Margin
Core operations generate 20.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.48 in profit for every $100 of shareholder equity.
ROA
Pentair plc generates $9.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pentair plc produces operating cash flow of $820.31M, showing steady but balanced cash generation.
Free Cash Flow
Pentair plc generates strong free cash flow of $751.41M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.59 in free cash annually.
FCF Yield
PNR converts 4.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
101.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.001
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How PNR Stacks Against Its Sector Peers
| Metric | PNR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.52 | 26.76 | Neutral |
| ROE | 17.48% | 1300.00% | Weak |
| Net Margin | 15.66% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.42 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.61 | 10.68 | Neutral |
| ROA | 9.52% | -1545134.00% (disorted) | Weak |
PNR outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pentair plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.96%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
78.24%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
120.18%
Industry Style: Cyclical, Value, Infrastructure
High Growth