Pentair (PNR) AI Stock Analysis

• Market Cap: $17.35B
• Dividend Yield: 0.94%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.13
• 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: 1,190,702
• 30 Day Avg. Volume: 1,168,986
• 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: 1.14
• Enterprise Value/Revenue: 4.81
• Enterprise Value/Gross Profit: 11.99
• Enterprise Value/Ebitda: 21.44
• 1Y Price Target: $127.46
• Price Target Upside: 20.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 4.9
• Revenue Forecast (FY): $4.16B

• Rating: 75 Outperform
• Price Target: $121.00 ▲(14.14% 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 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 generates revenue through multiple key streams, primarily from the sale of water treatment and filtration products, which serve both residential and commercial markets. The company also earns income from its pool and spa equipment, including pumps and heaters, which are essential for recreational water management. Additionally, Pentair's industrial segment provides specialized water solutions, including process water treatment and wastewater management, contributing significantly to its earnings. Strategic partnerships with distributors and OEMs enhance their market reach and sales channels, while ongoing investments in innovation and sustainability initiatives further bolster revenue by catering to the growing demand for eco-friendly water solutions.

Pentair Financial Statement Overview

Summary

Pentair exhibits strong financial health with significant revenue and profit growth, improved leverage, and efficient cash flow management. The company has managed to reduce its debt levels, but the decline in free cash flow growth warrants attention. Overall, Pentair is well-positioned within the industrial machinery sector, with a solid foundation for future growth.

Income Statement

Pentair demonstrates strong profitability with a consistent increase in gross profit margin from 33.1% in 2022 to 40.1% in TTM (Trailing-Twelve-Months). The net profit margin has also improved to 15.8% in TTM, reflecting efficient cost management. Revenue growth is robust at 69.8% in TTM, indicating significant expansion. EBIT and EBITDA margins are healthy, showing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved from 0.87 in 2022 to 0.42 in TTM, indicating better leverage management. Return on equity remains strong at 17.9% in TTM, showcasing effective use of equity. The equity ratio is stable, reflecting a solid capital structure. However, the high debt levels in previous years pose a potential risk.

Cash Flow

Operating cash flow to net income ratio is strong at 0.86 in TTM, indicating good cash generation relative to earnings. However, free cash flow growth has declined by 6.5% in TTM, which could impact future investments. The free cash flow to net income ratio remains robust at 0.92, suggesting efficient cash utilization.

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	1.69B	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: Positive
• Last Price: 106.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 106.01 is above the 20-day moving average (MA) of 104.38, below the 50-day MA of 107.01, and above the 200-day MA of 100.39, indicating a neutral trend. The MACD of -0.45 indicates Negative momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 76.66 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
GGG	78 Outperform	$13.86B	28.56	19.45%	1.32%	2.85%	3.09%
WTS	77 Outperform	$9.31B	28.81	17.81%	0.71%	4.18%	16.05%
PNR	75 Outperform	$17.35B	26.90	17.97%	0.94%	0.83%	-1.32%
RRX	69 Neutral	$9.97B	38.84	3.89%	0.93%	-4.99%	22.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MIDD	61 Neutral	$7.44B	―	-6.20%	―	0.27%	-159.24%
GNRC	59 Neutral	$9.43B	30.60	12.38%	―	5.52%	9.03%

Pentair Corporate Events

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.