Pentair (PNR) AI Stock Analysis

• Market Cap: $17.67B
• Dividend Yield: 0.94%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.19
• Revenue Growth: 0.83%
• EPS Growth: -1.32%
• Country: US
• Employees: 9,750
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.24
• Shares Outstanding: 163,641,880
• 10 Day Avg. Volume: 1,305,681
• 30 Day Avg. Volume: 1,191,754
• PEG Ratio: 101.37
• Price to Book (P/B): 4.72
• Price to Sales (P/S): 4.12
• P/FCF Ratio: 24.29
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 4.81
• Enterprise Value/Gross Profit: 11.99
• Enterprise Value/Ebitda: 21.44
• 1Y Price Target: $124.75
• Price Target Upside: 16.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 4.9
• Revenue Forecast (FY): $4.16B

• Rating: 75 Outperform
• Price Target: $121.00 ▲(13.44% Upside)

Pentair's strong financial performance and positive earnings call are the most significant factors contributing to its overall score. While the company shows robust growth and strategic acquisitions, technical indicators suggest potential short-term weakness, and the high P/E ratio indicates possible overvaluation. Challenges in specific segments and tariff uncertainties also pose risks.

Positive Factors

Revenue Growth

Pentair's strong revenue growth reflects its expanding market presence and effective product offerings, supporting long-term business sustainability.

Margin Improvement

Improved margins indicate effective cost control and operational efficiency, enhancing profitability and competitive positioning.

Strategic Acquisitions

Strategic acquisitions like HydroStop strengthen Pentair's market position and expand its product portfolio, supporting future growth.

Negative Factors

Decline in Water Solutions

A decline in water solutions sales could indicate challenges in a key segment, potentially impacting overall revenue and market position.

Tariff Uncertainty

Ongoing tariff uncertainties pose risks to cost structures and profitability, affecting long-term financial performance.

Free Cash Flow Decline

A decline in free cash flow growth may limit future investment capabilities and financial flexibility, impacting long-term strategic initiatives.

Pentair Business Overview & Revenue Model

Company Description

Pentair plc is a global water solutions company that provides innovative products, services, and solutions to customers in various sectors, including residential, commercial, industrial, and agricultural markets. The company operates through two primary segments: Water Quality Systems and Water Solutions. Pentair's core products include water filtration systems, pumps, and valves, as well as water treatment solutions that enhance the quality and safety of water for both drinking and recreational purposes.

How the Company Makes Money

Pentair generates revenue through multiple key streams, primarily from the sale of its products and solutions in the water treatment and management sectors. The Water Quality Systems segment contributes significantly to the company's earnings by providing residential and commercial water filtration and treatment products. The Water Solutions segment focuses on industrial applications and offers custom solutions for large-scale water systems, which further diversifies revenue. Additionally, Pentair benefits from recurring revenues through service contracts and maintenance agreements for its installed systems. The company also engages in strategic partnerships with various industry players to expand its market reach and enhance its product offerings, contributing positively to its financial performance.

Pentair Financial Statement Overview

Summary

Pentair demonstrates strong financial performance with solid income statement metrics, balanced leverage, and robust cash flow generation. The company maintains healthy profitability margins and cash conversion ratios, although historical debt levels pose potential risks.

Income Statement

Pentair has demonstrated a solid performance in its income statement metrics. The gross profit margin for the TTM stands at 39.8%, showing strong profitability. The net profit margin is 14.9%, indicating efficient cost management. While the revenue growth rate has been relatively stagnant over the past few periods, the company maintains healthy EBIT and EBITDA margins of 19.4% and 19.4% respectively, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial stance with a Debt-to-Equity ratio of 0.38, which suggests a balanced approach to leveraging. The return on equity for the TTM is 16.6%, reflecting good profitability relative to equity. The equity ratio is 56.7%, showing strong equity financing. However, the total debt has been significant in the past, indicating potential risks if not managed properly.

Cash Flow

Pentair's cash flow metrics are robust, with a notable free cash flow growth rate of 20.9% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.48 highlights efficient cash operations, while the free cash flow to net income ratio of 1.37 confirms good cash conversion. These metrics suggest that the company is effectively managing its cash resources.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.13B	4.08B	4.10B	4.12B	3.76B	3.02B
Gross Profit	1.66B	1.60B	1.52B	1.36B	1.32B	1.06B
EBITDA	925.80M	922.10M	852.00M	719.00M	716.80M	531.10M
Net Income	654.10M	625.40M	622.70M	480.90M	553.00M	358.60M
Balance Sheet
Total Assets	6.76B	6.45B	6.56B	6.45B	4.75B	4.20B
Cash, Cash Equivalents and Short-Term Investments	128.40M	118.70M	170.30M	108.90M	94.50M	82.10M
Total Debt	1.58B	1.77B	2.09B	2.40B	982.30M	926.80M
Total Liabilities	2.98B	2.88B	3.35B	3.74B	2.33B	2.09B
Stockholders Equity	3.78B	3.56B	3.22B	2.71B	2.42B	2.11B
Cash Flow
Free Cash Flow	782.70M	692.30M	543.20M	278.10M	553.00M	511.40M
Operating Cash Flow	850.50M	766.70M	619.20M	363.30M	613.20M	573.60M
Investing Cash Flow	-473.70M	-187.60M	-85.40M	-1.58B	-390.70M	-117.90M
Financing Cash Flow	-447.50M	-636.70M	-468.10M	1.23B	-222.20M	-435.90M

Pentair Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 106.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNR, the sentiment is Negative. The current price of 106.66 is below the 20-day moving average (MA) of 108.38, below the 50-day MA of 109.27, and above the 200-day MA of 99.45, indicating a neutral trend. The MACD of -0.63 indicates Positive momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 37.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PNR.

Pentair Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNR	75 Outperform	$17.67B	27.39	17.97%	0.94%	0.83%	-1.32%
WTS	73 Outperform	$9.42B	29.13	17.81%	0.70%	4.18%	16.05%
GGG	70 Outperform	$13.63B	28.09	19.45%	1.35%	2.85%	3.09%
RRX	69 Neutral	$9.14B	35.60	3.89%	0.99%	-4.99%	22.16%
MIDD	64 Neutral	$6.26B	15.27	12.06%	―	-1.70%	10.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$9.19B	30.30	12.38%	―	5.52%	9.03%

Pentair Corporate Events

Pentair’s Strong Q3 2025 Performance and Strategic Growth

Pentair plc is a global leader in providing sustainable water solutions, serving residential, commercial, and industrial sectors with innovative technologies to improve water management. In its latest earnings report, Pentair announced a 3% increase in sales for the third quarter of 2025, reaching $1,022 million. The company’s operating income rose by 29% to $232 million, with a return on sales of 22.7%. Earnings per share saw a significant increase, with GAAP EPS up by 33% to $1.12 and adjusted EPS rising by 14% to $1.24.

Pentair’s Earnings Call: Strong Quarter Amid Challenges

Pentair’s Recent Earnings Call: A Strong Quarter Amid Challenges

Pentair Announces Leadership Changes for 2026

Pentair announced key leadership changes effective in 2026. Robert P. Fishman will resign as CFO, and Nicholas J. Brazis will succeed him. Heather Hausmann’s role will be elevated to report directly to the CEO.

The most recent analyst rating on (PNR) stock is a Buy with a $124.00 price target. To see the full list of analyst forecasts on Pentair stock, see the PNR Stock Forecast page.