Pentair (PNR) AI Stock Analysis

• Market Cap: $16.86B
• Dividend Yield: 0.95%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 28.3
• Beta (1Y): 1.23
• Revenue Growth: -0.25%
• EPS Growth: -7.32%
• Country: US
• Employees: 9,750
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): 1.39
• Shares Outstanding: 163,931,260
• 10 Day Avg. Volume: 2,132,993
• 30 Day Avg. Volume: 1,561,503
• PEG Ratio: -4.95
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.18
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 8.02
• Enterprise Value/Ebitda: 14.80
• 1Y Price Target: $117.23
• Price Target Upside: 13.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 76 Outperform
• Price Target: $117.00 ▲(13.76%Upside)

Pentair's overall score reflects strong financial performance and positive earnings call outcomes. The stock is trending upward technically, but high valuation metrics and segment challenges temper the score.

Positive Factors

Financial Performance

The company raised 2025 guide at the midpoint by $0.075, more than the $0.06 beat and more than expected.

Margin Improvement

The divestiture of KBI is expected to uplift total company margin profile by roughly 40bps.

Operational Efficiency

Impressive tariff management supports unchanged margin guide.

Negative Factors

Consumer Fundamentals

There are few catalysts for end market demand to improve near-term given weak consumer fundamentals and high interest rates.

Housing Market

With rates still high, housing affordability challenging, and commercial food service showing some new sluggishness this Q, a more neutral stance feels appropriate now that shares have recovered toward highs.

Market Demand

End market demand remains lackluster, and investors were looking for a more robust beat and more conviction on upside to the cost savings runway.

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 through the sale of products and services aimed at enhancing water quality and management. Its revenue streams are primarily derived from its segments: Consumer Solutions and Industrial & Flow Technologies. The Consumer Solutions segment focuses on residential and commercial pool and spa equipment, as well as water filtration systems. The Industrial & Flow Technologies segment provides solutions for fluid management in industrial and commercial applications. Revenue is generated through direct sales to consumers, distributors, and commercial partners. Pentair also benefits from strategic partnerships and a strong distribution network that extends its market reach and customer base.

Pentair Financial Statement Overview

Summary

Pentair shows strong profitability with high margins in its income statement, balanced leverage on the balance sheet, and excellent cash flow generation. However, the historically high debt level poses some risk.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.08B	4.10B	4.12B	3.76B	3.02B
Gross Profit	1.60B	1.52B	1.36B	1.32B	1.06B
EBITDA	922.10M	852.00M	719.00M	716.80M	531.10M
Net Income	625.40M	622.70M	480.90M	553.00M	358.60M
Balance Sheet
Total Assets	6.45B	6.56B	6.45B	4.75B	4.20B
Cash, Cash Equivalents and Short-Term Investments	118.70M	170.30M	108.90M	94.50M	82.10M
Total Debt	1.65B	2.09B	2.35B	894.10M	839.60M
Total Liabilities	2.88B	3.35B	3.74B	2.33B	2.09B
Stockholders Equity	3.56B	3.22B	2.71B	2.42B	2.11B
Cash Flow
Free Cash Flow	692.30M	543.20M	278.10M	553.00M	511.40M
Operating Cash Flow	766.70M	619.20M	363.30M	613.20M	573.60M
Investing Cash Flow	-187.60M	-85.40M	-1.58B	-390.70M	-117.90M
Financing Cash Flow	-636.70M	-468.10M	1.23B	-222.20M	-435.90M

Pentair Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 102.85
• 50DMA: Positive
• 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 Neutral. The current price of 102.85 is below the 20-day moving average (MA) of 105.04, above the 50-day MA of 101.19, and above the 200-day MA of 97.36, indicating a neutral trend. The MACD of 1.13 indicates Positive momentum. The RSI at 48.00 is Neutral, neither overbought nor oversold. The STOCH value of 60.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PNR.

Pentair Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTS	79 Outperform	$8.41B	28.77	17.61%	0.72%	3.89%	8.17%
IEX	76 Outperform	$13.87B	29.21	12.73%	1.52%	1.66%	-17.18%
PNR	76 Outperform	$16.86B	28.30	17.15%	0.95%	-0.25%	-7.32%
ITT	76 Outperform	$12.51B	25.46	19.27%	0.84%	6.99%	23.25%
AOS	74 Outperform	$10.51B	19.91	27.60%	1.81%	-3.53%	-7.46%
Sector *	59 Neutral	AU$1.65B	10.34	11.24%	3.42%	6.75%	3.18%

Pentair Corporate Events

Pentair Restructures Sustainability Leadership Amid Executive Changes

Pentair plc has restructured its sustainability function by eliminating the role of Chief Sustainability Officer, previously held by Karla C. Robertson, who resigned on June 10, 2025. The sustainability team will now report to the Chief Technology Officer, aligning sustainability efforts with technology and innovation, while Aaron Gunderson temporarily fills the General Counsel and Secretary position.

The most recent analyst rating on (PNR) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Pentair stock, see the PNR Stock Forecast page.

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.

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.