NYSE:PNR

Stock Analysis Report

Executive Summary

Pentair plc provides various smart water solutions worldwide.


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Pentair's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PNR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.9%

PNR

13.3%

US Machinery

9.9%

US Market


1 Year Return

-32.8%

PNR

-22.8%

US Machinery

-11.9%

US Market

Return vs Industry: PNR underperformed the US Machinery industry which returned -22.6% over the past year.

Return vs Market: PNR underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

PNRIndustryMarket
7 Day25.9%13.3%9.9%
30 Day-24.0%-22.1%-15.0%
90 Day-34.7%-31.3%-21.5%
1 Year-31.5%-32.8%-20.7%-22.8%-10.0%-11.9%
3 Year-26.4%-52.3%-3.3%-10.2%12.3%5.1%
5 Year-24.0%-53.0%18.9%3.9%32.5%18.1%

Price Volatility Vs. Market

How volatile is Pentair's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pentair undervalued compared to its fair value and its price relative to the market?

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PNR ($29.93) is trading below our estimate of fair value ($45.19)

Significantly Below Fair Value: PNR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PNR is good value based on its PE Ratio (14x) compared to the Machinery industry average (15x).

PE vs Market: PNR is poor value based on its PE Ratio (14x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: PNR is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: PNR is overvalued based on its PB Ratio (2.6x) compared to the US Machinery industry average (1.5x).


Next Steps

Future Growth

How is Pentair forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNR's forecast earnings growth (8.8% per year) is above the savings rate (1.7%).

Earnings vs Market: PNR's earnings (8.8% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: PNR's earnings are forecast to grow, but not significantly.

Revenue vs Market: PNR's revenue (2.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: PNR's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PNR's Return on Equity is forecast to be low in 3 years time (19.4%).


Next Steps

Past Performance

How has Pentair performed over the past 5 years?

-11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNR has high quality earnings.

Growing Profit Margin: PNR's current net profit margins (12.2%) are higher than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: PNR's earnings have declined by -11% per year over the past 5 years.

Accelerating Growth: PNR's earnings growth over the past year (12.4%) exceeds its 5-year average (-11% per year).

Earnings vs Industry: PNR earnings growth over the past year (12.4%) exceeded the Machinery industry -2%.


Return on Equity

High ROE: PNR's Return on Equity (18.5%) is considered low.


Next Steps

Financial Health

How is Pentair's financial position?


Financial Position Analysis

Short Term Liabilities: PNR's short term assets ($1.1B) exceed its short term liabilities ($749.0M).

Long Term Liabilities: PNR's short term assets ($1.1B) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: PNR's debt to equity ratio (52.7%) is considered high.

Reducing Debt: PNR's debt to equity ratio has reduced from 64.2% to 52.7% over the past 5 years.

Debt Coverage: PNR's debt is well covered by operating cash flow (34.3%).

Interest Coverage: PNR's interest payments on its debt are well covered by EBIT (14.9x coverage).


Balance Sheet

Inventory Level: PNR has a low level of unsold assets or inventory.

Debt Coverage by Assets: PNR's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Pentair's current dividend yield, its reliability and sustainability?

2.54%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 29 2020Ex Dividend DateApr 16 2020Dividend Pay DateMay 01 202015 days from Ex DividendBuy in the next 18 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PNR's dividend (2.54%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: PNR's dividend (2.54%) is low compared to the top 25% of dividend payers in the US market (5.45%).


Stability and Growth of Payments

Stable Dividend: PNR's dividend payments have been volatile in the past 10 years.

Growing Dividend: PNR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.7%), PNR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PNR's dividends in 3 years are forecast to be well covered by earnings (32.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

John Stauch (54yo)

1.92s

Tenure

US$6,413,860

Compensation

Mr. John L. Stauch has been the President, Chief Executive Officer and Director of Pentair plc since April 30, 2018. He served as the Chief Financial Officer of the Automation and Control Systems unit of H ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD6.41M) is about average for companies of similar size in the US market ($USD7.47M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Stauch
President1.92yrsUS$6.41m0.12% $6.2m
Mark Borin
Executive VP1.92yrsUS$2.67m0.019% $967.8k
Karl Frykman
Executive VP & COO1.92yrsUS$2.68m0.038% $1.9m
Karla Robertson
Executive VP1.92yrsUS$1.28m0.0011% $53.2k
Philip Rolchigo
Executive VP & CTO3.17yrsUS$1.55m0.0036% $178.1k
James Lucas
Senior VP of Investor Relations & Treasurer7.75yrsno datano data
Marybeth Thorsgaard
Vice President of Communications7.75yrsno datano data
Kelly Baker
Executive VP & Chief Human Resources Officer3.17yrsno data0.00075% $37.6k
John Jacko
Executive VP & Chief Growth Officer3.17yrsUS$2.61m0.0035% $176.6k

3.2yrs

Average Tenure

54yo

Average Age

Experienced Management: PNR's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Stauch
President1.92yrsUS$6.41m0.12% $6.2m
T. Glenn
Independent Director13.17yrsUS$272.40k0.014% $684.4k
David Jones
Chairman & Lead Director1.92yrsUS$399.81k0.0092% $463.1k
Glynis Bryan
Independent Director16.33yrsUS$277.59k0.013% $657.8k
Theodore Harris
Independent Director1.92yrsUS$257.68k0.0024% $119.4k
Jacques H. Esculier
Independent Director5.67yrsUS$257.40k0.0059% $293.5k
Mona Stephenson
Independent Director0.50yrUS$169.54kno data
Michael Speetzen
Independent Director1.92yrsUS$257.68k0.0024% $119.4k
Billie Williamson
Independent Director6.17yrsUS$276.93k0.0063% $317.1k

1.9yrs

Average Tenure

60yo

Average Age

Experienced Board: PNR's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pentair plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pentair plc
  • Ticker: PNR
  • Exchange: NYSE
  • Founded: 1966
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$5.017b
  • Shares outstanding: 167.63m
  • Website: https://www.pentair.com

Number of Employees


Location

  • Pentair plc
  • Regal House
  • 70 London Road
  • London
  • Greater London
  • TW13 QS
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PNRNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
PNTDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
PNTBST (Boerse-Stuttgart)YesCommon SharesDEEURDec 1972
0Y5XLSE (London Stock Exchange)YesCommon SharesGBUSDDec 1972
PNR NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1972
P1NR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Pentair plc provides various smart water solutions worldwide. It operates through three segments: Aquatic Systems, Filtration Solutions, and Flow Technologies. The Aquatic Systems segment manufactures and sells residential and commercial pool equipment and accessories, including pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment, and pool accessories for residential and commercial pool maintenance, pool repair, renovation, service and construction, and aquaculture solution applications. This segment offers its products under the Kreepy Krauly, Pentair, and Sta-Rite brand names. The Filtration Solutions segment designs, manufactures, and markets components and systems, such as point-of-entry and point-of-use filtration, valves, and automated controls for residential and commercial applications, as well as advanced filtration, oil and gas separation, membrane technology, and energy recovery for food and beverage, and industrial applications. This segment offers its products under the Codeline, Everpure, Haffmans, Pelican, RainSoft, Südmo, and X-Flow brand names. The Flow Technologies segment manufactures and sells light duty diaphragm pumps, high-flow turbine pumps, and solid handling pumps. Its pumps are used in residential and municipal wells, water treatment, wastewater solids handling, pressure boosting, fluid delivery, circulation and transfer, fire suppression, flood control, agricultural irrigation, and crop spray applications. This segment offers its products under the Aurora, Berkeley, Fairbanks-Nijhuis, Hydromatic, Hypro, Jung Pumpen, Pentair, Myers, Sta-Rite, and Shurflo brand names. It serves businesses engaged in wholesale and retail distribution in the residential and commercial, food and beverage, and industrial verticals, as well as end-users, consumers, and original equipment manufacturers. Pentair plc was founded in 1966 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 01:05
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.