Pentair (PNR) AI Stock Analysis

• Market Cap: $15.38B
• Dividend Yield: 1.03%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.21
• Revenue Growth: -0.42%
• EPS Growth: 3.23%
• Country: US
• Employees: 9,750
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 1.11
• Shares Outstanding: 164,527,000
• 10 Day Avg. Volume: 1,261,032
• 30 Day Avg. Volume: 1,792,770
• PEG Ratio: 6.41
• Price to Book (P/B): 4.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.14
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 10.66
• Enterprise Value/Ebitda: 4.60
• 1Y Price Target: $102.33
• Price Target Upside: 9.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Pentair's overall stock score is bolstered by robust financial performance, positive sentiment from the earnings call, and supportive corporate events. The company demonstrates strong profitability and strategic operational improvements, although challenges in certain segments and macroeconomic pressures persist. Technical indicators suggest potential for upward momentum, but caution is advised due to approaching overbought conditions. Valuation is reasonable, with a fair P/E ratio and modest dividend yield.

Positive Factors

Earnings Performance

Pentair reported adjusted EPS of $1.08, which exceeded the estimate and consensus.

Financial Strategy

Buyback / debt paydown in excess of model wouldn't surprise and could be in $200-300MM range.

Margin Expansion

Impressive tariff management supports unchanged margin guide.

Negative Factors

Market Conditions

Res'l remains broadly choppy amid incremental uncertainty, with interest rates remaining a headwind.

Market Demand

Potential demand destruction in both Res'l and Non-Res'l from price increases will hold back re-rating.

Recovery Visibility

There is a lack of visibility on residential and commercial recovery, and limited near-term upside to margin targets until volumes recover.

Pentair Business Overview & Revenue Model

Company Description

Pentair plc provides various water solutions worldwide. It operates through Consumer Solutions; and Industrial & Flow Technologies segments. The Consumer Solutions segment designs, 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, repair, renovation, service, and construction applications; and water treatment products and systems comprising pressure tanks, control valves, activated carbon products, conventional filtration products, and point-of-entry and point-of-use systems for the use in residential whole home water filtration, drinking water filtration, and water softening solutions, as well as in commercial total water management and filtration in foodservice operations. It offers its products under the Everpure, Ken's Beverage, Kreepy Krauly, Pentair Water Solutions, Pleatco, RainSoft, and Sta-Rite brands. The Industrial & Flow Technologies segment manufactures and sells fluid treatment products, such as advanced membrane filtration products, separation systems, and membrane bioreactors; water supply and disposal, solid handling, fluid transfer, and turbine pumps; and valves, spray nozzles, process filtration systems, and gas recovery solutions for food and beverage, fluid separation technologies, water and wastewater treatment, water wells, pressure boosting, fire suppression, flood control, agricultural irrigation, crop spray, fluid circulation and transfer, fluid delivery, ion exchange, desalination, residential and municipal wells, and wastewater solids handling applications. It offers its products under the Pentair, Aurora, Berkeley, Codeline, Fairbanks-Nijhuis, Haffmans, Hydromatic, Hypro, Jung Pumpen, Myers, Sta-Rite, Shurflo, Südmo, and X-Flow brands. Pentair plc was founded in 1966 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Pentair makes money primarily through the sale of its water treatment and filtration products, and flow management solutions. The company's revenue streams are diversified across residential, commercial, and industrial sectors, with a strong emphasis on delivering high-quality and efficient water systems. Key revenue drivers include sales of pool equipment, advanced filtration systems, and water flow technologies. Pentair also benefits from strategic partnerships and acquisitions that enhance its product portfolio and expand its market reach, contributing significantly to its earnings.

Pentair Financial Statement Overview

Summary

Pentair is performing well across key financial metrics, demonstrating solid profitability, stable financial health, and strong cash flow generation. While there is a slight decline in revenue, the company maintains a strong profit margin and cash flow, indicating resilience in its financial operations. The balance sheet shows a sound financial position with an acceptable level of leverage.

Income Statement

Pentair has shown robust profitability with a high gross profit margin of 39.5% for TTM, indicating efficient cost management. The net profit margin is also strong at 15.9%, reflecting solid bottom-line performance. However, there is a slight decline in revenue compared to the previous year, indicating potential challenges in revenue growth.

Balance Sheet

Pentair exhibits a healthy equity ratio of 53.9%, showcasing financial stability. The debt-to-equity ratio stands at 0.51, which is manageable but has increased slightly over the years. The company’s return on equity is impressive at 17.8%, demonstrating effective utilization of shareholders' equity.

Cash Flow

Pentair's operating cash flow is robust, with a strong operating cash flow to net income ratio of 1.29, indicating effective cash generation relative to net income. The free cash flow growth rate is healthy at 10.3%, suggesting good liquidity and potential for reinvestment or debt reduction.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.08B	4.08B	4.10B	4.12B	3.76B	3.02B
	Gross Profit
1.61B	1.60B	1.52B	1.36B	1.32B	1.06B
	EBIT
843.20M	803.80M	739.20M	595.30M	636.90M	461.40M
	EBITDA
929.10M	922.10M	852.00M	830.40M	714.40M	527.60M
	Net Income Common Stockholders
647.00M	625.40M	622.70M	480.90M	553.00M	358.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
140.60M	118.70M	170.30M	108.90M	94.50M	82.10M
	Total Assets
6.75B	6.45B	6.56B	6.45B	4.75B	4.20B
	Total Debt
1.95B	1.65B	2.09B	2.35B	894.10M	839.60M
	Net Debt
1.81B	1.53B	1.92B	2.24B	799.60M	757.50M
	Total Liabilities
3.11B	2.88B	3.35B	3.74B	2.33B	2.09B
	Stockholders Equity
3.63B	3.56B	3.22B	2.71B	2.42B	2.11B
Cash Flow		Free Cash Flow
763.50M	692.30M	543.20M	278.10M	553.00M	511.40M
	Operating Cash Flow
835.40M	766.70M	619.20M	363.30M	613.20M	573.60M
	Investing Cash Flow
-185.10M	-187.60M	-85.40M	-1.58B	-390.70M	-117.90M
	Financing Cash Flow
-612.80M	-636.70M	-468.10M	1.23B	-222.20M	-435.90M

Pentair Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNR, the sentiment is Positive. The current price of 93.46 is above the 20-day moving average (MA) of 87.95, above the 50-day MA of 87.06, and below the 200-day MA of 94.11, indicating a neutral trend. The MACD of 2.04 indicates Negative momentum. The RSI at 63.34 is Neutral, neither overbought nor oversold. The STOCH value of 75.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNR.

Pentair Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	82 Outperform	$11.27B	22.78	19.27%	0.91%	6.99%	23.25%
PNR	78 Outperform	$15.38B	24.10	18.59%	1.03%	-0.42%	3.23%
WTS	78 Outperform	$7.90B	27.08	17.61%	0.73%	3.89%	8.17%
IEX	75 Outperform	$13.86B	29.06	12.73%	1.50%	1.66%	-17.18%
AOS	71 Outperform	$9.70B	19.10	27.97%	1.96%	-1.60%	-7.12%
Sector *	64 Neutral	$4.30B	11.88	5.23%	249.82%	4.12%	-10.27%

Pentair Corporate Events

Pentair Shareholders Approve Key Proposals at AGM

On May 6, 2025, Pentair plc held its annual general meeting where shareholders voted on several key proposals. All ten director nominees were re-elected, and the compensation for named executive officers was approved. Additionally, Deloitte & Touche LLP was ratified as the independent auditor, and the board was authorized to allot new shares and opt-out of statutory preemption rights under Irish law. These decisions reflect shareholder support for the company’s current leadership and strategic direction, potentially impacting its governance and financial strategies moving forward.

Spark’s Take on PNR Stock

According to Spark, TipRanks’ AI Analyst, PNR is a Outperform.

Pentair’s overall performance is strong, underpinned by solid financial health, effective strategic initiatives, and positive earnings guidance. Challenges such as sales declines in certain segments and macroeconomic pressures are balanced by robust profitability and operational improvements.

To see Spark’s full report on PNR stock, click here.

Pentair Appoints New Chief Accounting Officer

Pentair plc announced the appointment of Jennifer M. Hensley as the new Senior Vice President, Chief Accounting Officer, and Controller, effective May 12, 2025. This change in leadership follows her extensive experience within the company and her previous role as Vice President, Corporate Controller. The transition marks a significant step in the company’s leadership structure, with Robert P. Fishman continuing as Executive Vice President and Chief Financial Officer. The appointment includes a promotional equity award and a Key Executive Employment and Severance Agreement, aligning Ms. Hensley’s compensation with other executive officers.

Spark’s Take on PNR Stock

According to Spark, TipRanks’ AI Analyst, PNR is a Outperform.

Pentair’s overall performance is strong, underpinned by solid financial health, effective strategic initiatives, and positive earnings guidance. Challenges such as sales declines in certain segments and macroeconomic pressures are balanced by robust profitability and operational improvements.

To see Spark’s full report on PNR stock, click here.