NYSE:PNR

Stock Analysis Report

Executive Summary

Pentair plc provides various smart water solutions worldwide.

Snowflake

Fundamentals

Proven track record average dividend payer.


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


Market Performance


7 Day Return

-3.2%

PNR

-2.7%

US Machinery

-0.6%

US Market


1 Year Return

-18.4%

PNR

-7.5%

US Machinery

0.6%

US Market

PNR underperformed the Machinery industry which returned -6.8% over the past year.

PNR underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

PNRIndustryMarket
7 Day-3.2%-2.7%-0.6%
30 Day0.3%5.6%2.2%
90 Day0.06%-1.9%1.1%
1 Year-16.9%-18.4%-5.6%-7.5%2.9%0.6%
3 Year-7.4%-40.2%48.0%38.4%44.6%35.2%
5 Year-12.0%-45.7%54.1%35.1%61.9%44.2%

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

4 weeks ago | Simply Wall St

Those Who Purchased Pentair (NYSE:PNR) Shares Five Years Ago Have A 47% Loss To Show For It

Valuation

Is Pentair undervalued based on future cash flows and its price relative to the stock market?

5%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Pentair's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Pentair's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Pentair is good value based on earnings compared to the US Machinery industry average.

Pentair is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Pentair is poor value based on expected growth next year.


Price Based on Value of Assets

Pentair is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

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

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pentair's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

Pentair's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).

Pentair's revenue growth is positive but not above the United States of America market average.

Pentair's earnings growth is positive but not above the United States of America market average.

Pentair's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Pentair is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Pentair performed over the past 5 years?

-19.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pentair's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Pentair's 1-year earnings growth exceeds its 5-year average (46.4% vs -19.1%)

Pentair's earnings growth has exceeded the US Machinery industry average in the past year (46.4% vs 18.7%).


Return on Equity

Pentair has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Pentair used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Pentair has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Pentair's financial position?


Financial Position Analysis

Pentair is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Pentair's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Pentair's level of debt (67.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (48.2% vs 67.3% today).

Debt is well covered by operating cash flow (29.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 17.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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

2.21%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Pentair's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Pentair's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).


Next Steps

Management

What is the CEO of Pentair's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

John Stauch (54yo)

1.4yrs

Tenure

US$6,014,401

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

John's remuneration is about average for companies of similar size in United States of America.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

54yo

Average Age

The tenure for the Pentair management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

60yo

Average Age

The tenure for the Pentair board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$48,018,88307 Dec 18
Trian Fund Management, L.P.
EntityCompany
Shares1,123,057
Max PriceUS$42.82
SellUS$6,757,90406 Dec 18
Trian Fund Management, L.P.
EntityCompany
Shares169,687
Max PriceUS$39.83
SellUS$94,753,58230 Oct 18
Trian Fund Management, L.P.
EntityCompany
Shares2,417,213
Max PriceUS$39.79

Ownership Breakdown


Management Team

  • Phil Rolchigo (57yo)

    Executive VP & CTO

    • Tenure: 2.7yrs
    • Compensation: US$1.55m
  • John Jacko (62yo)

    Executive VP & Chief Growth Officer

    • Tenure: 2.7yrs
    • Compensation: US$2.61m
  • Karl Frykman (58yo)

    Executive VP & COO

    • Tenure: 1.4yrs
    • Compensation: US$3.11m
  • Marybeth Thorsgaard

    Vice President of Communications

    • Tenure: 7.3yrs
  • John Stauch (54yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$6.01m
  • Mark Borin (52yo)

    Executive VP

    • Tenure: 1.4yrs
    • Compensation: US$2.51m
  • Jim Lucas

    Senior VP of Investor Relations & Treasurer

    • Tenure: 7.3yrs
  • Karla Robertson (48yo)

    Executive VP

    • Tenure: 1.4yrs
    • Compensation: US$2.00m
  • Kelly Baker (50yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 2.7yrs

Board Members

  • Mike Glenn (63yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$252.49k
  • Dave Jones (70yo)

    Chairman & Lead Director

    • Tenure: 1.4yrs
    • Compensation: US$337.49k
  • Glynis Bryan (60yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$257.49k
  • Ted Harris (54yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$191.66k
  • Jacques H. Esculier (60yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$235.83k
  • John Stauch (54yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$6.01m
  • Mike Speetzen (49yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$191.66k
  • Billie Williamson (67yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$245.49k

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$6.156b
  • Shares outstanding: 168.05m
  • 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

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:41
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.