NYSE:PNR

Stock Analysis Report

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Executive Summary

Pentair plc provides various smart water solutions worldwide. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.5%

PNR

0.8%

US Machinery

-0.4%

US Market


1 Year Return

25.1%

PNR

13.6%

US Machinery

18.3%

US Market

Return vs Industry: PNR exceeded the US Machinery industry which returned 13.6% over the past year.

Return vs Market: PNR exceeded the US Market which returned 18.3% over the past year.


Shareholder returns

PNRIndustryMarket
7 Day5.5%0.8%-0.4%
30 Day15.6%10.7%6.6%
90 Day23.0%14.8%8.6%
1 Year27.4%25.1%16.6%13.6%21.0%18.3%
3 Year14.3%-25.9%25.5%16.4%42.1%32.7%
5 Year47.5%-8.6%108.4%84.9%85.6%64.7%

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?

24.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PNR ($51.97) is trading above our estimate of fair value ($43.81)

Significantly Below Fair Value: PNR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PNR is good value based on its PE Ratio (24.1x) compared to the US Machinery industry average (26.6x).

PE vs Market: PNR is poor value based on its PE Ratio (24.1x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: PNR is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: PNR is overvalued based on its PB Ratio (4.2x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

How is Pentair forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNR's forecast earnings growth (11.7% per year) is above the savings rate (2.2%).

Earnings vs Market: PNR's earnings (11.7% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: PNR's revenue (5.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: PNR's revenue (5.1% 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 high in 3 years time (22.6%)


Next Steps

Past Performance

How has Pentair performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNR has high quality earnings.

Growing Profit Margin: PNR's current net profit margins (12.1%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: PNR's earnings have declined by 1.3% per year over the past 5 years.

Accelerating Growth: PNR's earnings growth over the past year (2%) exceeds its 5-year average (-1.3% per year).

Earnings vs Industry: PNR earnings growth over the past year (2%) exceeded the Machinery industry -13.9%.


Return on Equity

High ROE: PNR's Return on Equity (17.6%) is considered low.


Next Steps

Financial Health

How is Pentair's financial position?


Financial Position Analysis

Short Term Liabilities: PNR's short term assets ($963.5M) exceed its short term liabilities ($818.9M).

Long Term Liabilities: PNR's short term assets ($963.5M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: PNR's debt to equity ratio (39.3%) is considered satisfactory.

Reducing Debt: PNR's debt to equity ratio has reduced from 109.8% to 39.3% over the past 5 years.

Debt Coverage: PNR's debt is well covered by operating cash flow (73.1%).

Interest Coverage: PNR's interest payments on its debt are well covered by EBIT (17.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PNR's dividend (1.46%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: PNR's dividend (1.46%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.8%), 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 (28.3% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

John Stauch (55 yo)

2.5yrs

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 and the Executive Vice President of Pentair plc ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD6.41M) is about average for companies of similar size in the US market ($USD7.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Stauch
President2.5yrsUS$6.41m0.13%
$ 11.3m
Karla Robertson
Executive VP2.5yrsUS$1.28m0.0016%
$ 134.9k
Karl Frykman
0.33yrUS$2.68m0.079%
$ 6.8m
Robert Fishman
Executive VP0.42yrno datano data
Philip Rolchigo
Executive VP & CTO3.75yrsUS$1.55m0.0040%
$ 343.2k
James Lucas
Senior VP of Investor Relations & Treasurer8.33yrsno datano data
Marybeth Thorsgaard
Vice President of Communications8.33yrsno datano data
Kelly Baker
Executive VP & Chief Human Resources Officer3.75yrsno data0.0011%
$ 91.6k
John Jacko
Executive VP & Chief Growth Officer3.75yrsUS$2.61m0.0040%
$ 344.1k
Jerome Pedretti
Executive VP & President of Industrial & Flow Technologies0.42yrno data0.0049%
$ 422.7k
Mario D'Ovidio
Executive VP & President of Consumer Solutions0.42yrno datano data
Steve Pilla
Executive VP & Chief Supply Chain Officer0.17yrno datano data

2.5yrs

Average Tenure

56yo

Average Age

Experienced Management: PNR's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Stauch
President2.5yrsUS$6.41m0.13%
$ 11.3m
T. Glenn
Independent Director13.75yrsUS$272.40k0.014%
$ 1.2m
David Jones
Independent Chairman & Lead Director2.5yrsUS$399.81k0.0093%
$ 804.0k
Glynis Bryan
Independent Director16.92yrsUS$277.59k0.013%
$ 1.1m
Theodore Harris
Independent Director2.5yrsUS$257.68k0.0024%
$ 207.5k
Jacques H. Esculier
Independent Director6.25yrsUS$257.40k0.0059%
$ 509.2k
Mona Abutaleb
Independent Director1.08yrsUS$169.54k0.0020%
$ 172.0k
Michael Speetzen
Independent Director2.5yrsUS$257.68k0.0024%
$ 207.5k
Billie Williamson
Independent Director6.75yrsUS$276.93k0.0064%
$ 550.7k

2.5yrs

Average Tenure

61yo

Average Age

Experienced Board: PNR's board of directors are not considered experienced ( 2.5 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$8.645b
  • Shares outstanding: 166.35m
  • 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
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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 00:40
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
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.