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Pentair
(NYSE:PNR)
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Rating:64Neutral
Price Target:
$68.00
▲(8.14% Upside)
Action:Reiterated
Date:07/28/26
PNR scores as a mid-range setup: strong underlying profitability and solid balance-sheet/cash characteristics are the main supports, reinforced by reaffirmed EPS guidance and continued shareholder returns. The score is held back primarily by a clear technical downtrend (price well below major moving averages) and near-term fundamental softness (TTM revenue decline and Pool-driven sales pressure reflected in FY26/Q3 guidance).
Positive Factors
Sustained Profitability
Pentair’s elevated TTM margins and ~18% ROE reflect durable operating leverage from engineered water products and improved cost structure since 2022. High structural profitability supports reinvestment, dividend growth and resilience across residential and commercial cycles.
Negative Factors
Pool Segment Shock
The dramatic pool destocking materially hit volumes and aftermarket momentum; because Pool is a key end-market, lost sell-through and execution missteps can erode dealer relationships and share. Recovery will depend on multi-quarter channel normalization and remedial execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability
Pentair’s elevated TTM margins and ~18% ROE reflect durable operating leverage from engineered water products and improved cost structure since 2022. High structural profitability supports reinvestment, dividend growth and resilience across residential and commercial cycles.
Read all positive factors
Pentair Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows operating profit for each business unit after core costs, revealing which segments are the most profitable and whether management is improving efficiency or facing margin pressure from costs or pricing.
Shows operating profit for each business unit after core costs, revealing which segments are the most profitable and whether management is improving efficiency or facing margin pressure from costs or pricing.
Data provided by:
The Fly
The FlyPentair (PNR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.56B
Dividend Yield1.6%
Average Volume (3M)2.81M
Price to Earnings (P/E)16.5
Beta (1Y)1.05
Revenue Growth-2.15%
EPS Growth8.39%
CountryUS
Employees9,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)4.01
Shares Outstanding159,637,950
10 Day Avg. Volume4,523,687
30 Day Avg. Volume2,813,812
Financial Highlights & Ratios
PEG Ratio4.70
Price to Book (P/B)4.42
Price to Sales (P/S)4.09
P/FCF Ratio22.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$78.17Price Target Upside24.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)4.66
Revenue Forecast (FY)$3.93B
Pentair Business Overview & Revenue Model
Company Description
Pentair plc engages in the provision of water solutions for residential, commercial, industrial, infrastructure, and agricultural applications. It operates through the following segments: Flow, Water Solutions, and Pool. The Flow segment designs, ...
How the Company Makes Money
Pentair primarily makes money by selling engineered water-related equipment and systems, with revenue largely driven by product sales into two main end-markets: (1) Pool and spa: sales of pumps, filters, heaters, sanitization, lighting, cleaners, ...
Pentair Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call mixed strong execution in Flow and Water Solutions, record return-on-sales in both segments, disciplined capital allocation (including $150M buyback and dividend raise), and a strategic acquisition (Taco) that meaningfully broadens the Water Solutions platform. These positives were tempered by a significant, but described-as-temporary, downturn in the Pool business driven by a $170M channel inventory destocking that led to a 42% decline in pool sales and substantial margin pressure. Management provided concrete remediation plans for Pool, reaffirmed full-year EPS, and outlined a deleveraging path post-acquisition. Overall, the positives—diversified segment strength, clear M&A rationale, and continued shareholder returns—outweigh the near-term pool-related headwinds.Positive Updates
Quarterly Financial Performance
Q2 sales of $933 million, adjusted operating income of $237 million, return on sales (ROS) of 25.4%, and adjusted EPS of $1.14; results slightly better than the July 14 preannouncement.
Negative Updates
Severe Pool Segment Underperformance
Pool sales declined 42% year-over-year to $247 million; pool segment income fell 62% to $58 million and ROS declined to 23.4% from 35.7% in Q2 2025. Management attributes primary cause to a $170 million channel inventory destocking.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Financial Performance
Q2 sales of $933 million, adjusted operating income of $237 million, return on sales (ROS) of 25.4%, and adjusted EPS of $1.14; results slightly better than the July 14 preannouncement.
Read all positive updates
Company Guidance
Pentair reaffirmed full‑year 2026 adjusted EPS of $4.60–$4.80 and expects total sales down ~4%–7% (midpoint ≈ $3.95B), with price up ~3%, FX/acquisitions/divestitures net +50 bps and volume driving the remainder; total adjusted operating income is expected to decline ~5%–9% with ~$55M of productivity savings net of investments and tariff‑refund outcomes in a $35M–$50M range. For Q3 the company expects sales down ~4%–6% (mid ≈ $970M), Flow up high‑single‑digits (including ≈ $10M from Hydra‑Stop at ~30% ROS), Water Solutions up low‑single‑digits, Pool down ~23%–25%, Q3 adjusted operating income down ~14%–16% and adjusted EPS ≈ $1.05–$1.08. Q2 actuals: sales $933M, adjusted operating income $237M, ROS 25.4%, adjusted EPS $1.14 (core sales -17% y/y driven primarily by ~$170M pool channel destocking); segment detail—Flow sales $264M (+5%) with ROS 26.5%, Water Solutions sales $422M (-5%) with ROS 30% (included ~$18M tariff refunds), Pool sales $247M (-42%) with segment income $58M and ROS 23.4%. The announced Taco acquisition is $1.4B (~10.5x expected 2026 adjusted EBITDA), expected to be $0.10–$0.15 accretive to 2027 adjusted EPS with ~ $30M run‑rate cost synergies, bringing pro forma net leverage to ~2.4x at close (target <1.5x within two years); Pentair repurchased $150M of shares in Q2 and exited the quarter with net debt leverage of 1.4x.Pentair Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.01B | 4.18B | 4.08B | 4.10B | 4.12B | 3.76B |
| Gross Profit | 1.66B | 1.69B | 1.60B | 1.52B | 1.36B | 1.32B |
| EBITDA | 929.30M | 943.60M | 922.10M | 852.00M | 719.00M | 716.80M |
| Net Income | 651.40M | 653.80M | 625.40M | 622.70M | 480.90M | 553.00M |
Balance Sheet | ||||||
| Total Assets | 6.71B | 6.87B | 6.45B | 6.56B | 6.45B | 4.75B |
| Cash, Cash Equivalents and Short-Term Investments | 91.80M | 101.60M | 118.70M | 170.30M | 108.90M | 94.50M |
| Total Debt | 1.76B | 1.77B | 1.77B | 2.09B | 2.40B | 982.30M |
| Total Liabilities | 2.96B | 3.00B | 2.88B | 3.35B | 3.74B | 2.33B |
| Stockholders Equity | 3.75B | 3.87B | 3.56B | 3.22B | 2.71B | 2.42B |
Cash Flow | ||||||
| Free Cash Flow | 673.00M | 746.00M | 692.30M | 543.20M | 278.10M | 553.00M |
| Operating Cash Flow | 751.50M | 814.80M | 766.70M | 619.20M | 363.30M | 613.20M |
| Investing Cash Flow | -397.80M | -404.50M | -187.60M | -85.40M | -1.58B | -390.70M |
| Financing Cash Flow | -415.20M | -402.50M | -636.70M | -468.10M | 1.23B | -222.20M |
Pentair Technical Analysis
Negative
62.88
Price Trends
70.26
Negative
75.77
Negative
88.45
Negative
Market Momentum
-0.82
Negative
44.74
Neutral
20.75
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 62.88 is below the 20-day moving average (MA) of 65.74, below the 50-day MA of 70.26, and below the 200-day MA of 88.45, indicating a neutral trend. The MACD of -0.82 indicates Negative momentum. The RSI at 44.74 is Neutral, neither overbought nor oversold. The STOCH value of 20.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PNR.
Pentair Risk Analysis
Pentair disclosed 42 risk factors in its most recent earnings report. Pentair reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pentair Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $12.83B | 33.54 | 18.56% | 0.63% | 17.13% | 23.21% | |
76 Outperform | $13.27B | 25.37 | 20.27% | 1.46% | 4.58% | 12.51% | |
64 Neutral | $10.56B | 16.50 | 17.13% | 1.69% | -2.15% | 8.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $12.94B | 49.73 | 9.54% | ― | 0.61% | -27.77% | |
56 Neutral | $11.69B | 35.96 | 4.74% | 0.66% | 3.50% | 29.04% | |
55 Neutral | $5.33B | -12.72 | -18.30% | ― | -7.22% | -191.27% |
* Industrials Sector Average
PNR
Pentair
66.16
-38.16
-36.58%
GNRC
Generac Holdings
219.30
21.16
10.68%
GGG
Graco
81.94
-1.77
-2.12%
RRX
Regal Rexnord
175.49
30.06
20.67%
MIDD
The Middleby
117.91
12.76
12.13%
WTS
Watts Water Technologies
384.42
112.02
41.12%
Pentair Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Pentair CFO Resigns as Interim Successor Appointed
Negative
Jul 15, 2026
Pentair announced on July 14, 2026 that Chief Financial Officer Nicholas Brazis resigned on July 10 to join a private company and that former CFO Bob Fishman has returned as interim CFO, with the board initiating a search for a permanent successor...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Pentair Shareholders Back Directors, Pay and Governance Measures
Positive
May 6, 2026
Pentair plc held its 2026 annual general meeting of shareholders on May 5, 2026, with 91.20% of its 161.6 million outstanding ordinary shares represented, underscoring strong shareholder engagement in its governance. At the meeting, shareholders r...
Business Operations and StrategyPrivate Placements and Financing
Pentair Amends Credit Agreement, Adds New Term Loan
Neutral
May 6, 2026
On May 5, 2026, Pentair and its key financing subsidiaries amended their existing credit agreement to add a new $500 million term loan facility, which was used to refinance and fully prepay a prior loan agreement dated March 24, 2022. As of the cl...
Business Operations and StrategyExecutive/Board Changes
Pentair Streamlines Leadership, Consolidates Pool and Water Businesses
Positive
Apr 28, 2026
Pentair announced leadership changes in its pool business, following the April 24, 2026 decision by Jerome O. Pedretti, Executive Vice President and Chief Executive Officer, Pool, to resign effective July 1, 2026. On April 28, 2026, the company sa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.