Pentair (PNR) AI Stock Analysis

• Market Cap: $17.36B
• Dividend Yield: 0.94%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.17
• 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: 1,364,575
• 30 Day Avg. Volume: 1,326,931
• 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: $125.36
• Price Target Upside: 18.17% 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 ▲(14.06% 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 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 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: 106.08
• 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 106.08 is above the 20-day moving average (MA) of 105.76, below the 50-day MA of 108.11, and above the 200-day MA of 99.80, indicating a neutral trend. The MACD of -1.07 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 61.01 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
PNR	75 Outperform	$17.36B	26.91	17.97%	0.94%	0.83%	-1.32%
WTS	73 Outperform	$9.26B	28.66	17.81%	0.70%	4.18%	16.05%
GGG	70 Outperform	$13.65B	28.13	19.45%	1.34%	2.85%	3.09%
RRX	69 Neutral	$9.67B	37.67	3.89%	0.99%	-4.99%	22.16%
MIDD	64 Neutral	$5.93B	―	-6.20%	―	0.27%	-159.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$8.73B	28.33	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.