Pentair (PNR)
NYSE:PNR
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Pentair
(NYSE:PNR)
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Rating:68Neutral
Price Target:
$94.00
▲(7.29% Upside)
Action:ReiteratedDate:02/04/26
The score is supported most by solid financial performance (margin expansion, strong free cash flow, and improving leverage) and constructive 2026 guidance with ongoing margin gains. It is held back by weak technicals (below major moving averages with negative MACD) and a relatively rich valuation (P/E 26.64) with only a modest dividend yield.
Positive Factors
Sustained margin expansion
Pentair has delivered multi-year margin expansion driven by mix, pricing and operational improvements. Fifteen consecutive quarters of ROS expansion and record operating margins point to structural profit improvement that supports durable cash generation and reinvestment capacity.
Negative Factors
Flat recent revenue growth
Top-line stagnation limits leverage on fixed costs and constrains upside to profits absent further share gains or pricing. Relying on replacement and pricing rather than durable organic volume growth raises execution pressure to sustain margins and cash flow over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained margin expansion
Pentair has delivered multi-year margin expansion driven by mix, pricing and operational improvements. Fifteen consecutive quarters of ROS expansion and record operating margins point to structural profit improvement that supports durable cash generation and reinvestment capacity.
Read all positive factors
Pentair (PNR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.03B
Dividend Yield0.96%
Average Volume (3M)1.51M
Price to Earnings (P/E)26.1
Beta (1Y)1.09
Revenue Growth0.83%
EPS Growth-1.32%
CountryUS
Employees9,750
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.18
Shares Outstanding163,235,700
10 Day Avg. Volume1,475,553
30 Day Avg. Volume1,506,325
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 Cap1.11
Enterprise Value/Revenue3.74
Enterprise Value/Gross Profit9.23
Enterprise Value/Ebitda16.53
Forecast
1Y Price Target
$113.70Price Target Upside29.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)5.34
Revenue Forecast (FY)$4.31B
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 ...
How the Company Makes Money
Pentair primarily makes money by selling engineered water-related equipment and systems, with a major focus on pool and spa applications. Revenue is generated through (1) product sales of pool and spa equipment (such as pumps, filtration, heaters,...
Pentair Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call emphasized multiple material operational and financial accomplishments—record annual revenues, record adjusted EPS, robust free cash flow, sustained margin expansion (15 consecutive quarters), and strong segment performance in Flow and Pool—along with clear 2026 guidance showing growth in sales, earnings, and ROS expansion. Counterbalancing items included weakness in Water Solutions (quarterly and annual sales declines), tariff and metal inflation pressures (incremental ~$30M tariff headwind in 2026), reliance on transformation savings that partially depend on volume recovery, and a conservative outlook that assumes no residential recovery. On balance, the positive operational execution, record cash generation, strong capital returns, and upward guidance meaningfully outweigh the highlighted near-term headwinds and conservatism in demand assumptions.Positive Updates
Strong Q4 Financial Performance and Margin Expansion
Q4 sales grew 5%; adjusted operating income increased 9% to $252 million; return on sales expanded 90 basis points to 24.7%; adjusted EPS rose 9% to $1.18; fifteenth consecutive quarter of margin expansion.
Negative Updates
Water Solutions Near-Term Weakness
Q4 Water Solutions sales declined 10% to $232 million; reportable segment income fell 12% to $55 million and ROS decreased 60 bps to 23.5% due to FX and volume declines. Full-year water solutions sales down 6% (reportable segment income flat despite FY ROS improvement).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Financial Performance and Margin Expansion
Q4 sales grew 5%; adjusted operating income increased 9% to $252 million; return on sales expanded 90 basis points to 24.7%; adjusted EPS rose 9% to $1.18; fifteenth consecutive quarter of margin expansion.
Read all positive updates
Company Guidance
Pentair's 2026 guidance calls for adjusted EPS of $5.25–$5.40 (≈+7–10% y/y, +8% at the midpoint) and total sales up ≈3–4%, with adjusted operating income up ≈5–8% and return on sales expanding roughly 100 bps to ~26%; they expect full-year volume to be roughly flat, price to be up ~2–3%, and FX/acquisitions/divestitures to contribute ~50 bps, with ~ $70M of transformation savings net of investments. By segment, Flow sales are expected to rise mid- to high-single-digits (with ROS improving in line with company expansion), Water Solutions roughly flat (core +low-single-digits), and Pool ≈+3% (modest ROS improvement). Q1 2026 guidance: sales +1–2% (Flow high-single-digits, Water Solutions down low-single-digits with core flat, Pool ~flat), Q1 adjusted operating income +2–5%, and Q1 adjusted EPS $1.15–$1.18 (~+4–6%, ~22% of full-year EPS). Other planning assumptions include corporate expenses ≈$90M, interest ≈$67M, an adjusted tax rate ≈17%, ~165M share count, incremental tariffs of ≈$30M in 2026 (primarily Q1) versus ~$70M in 2025, and a target for free cash flow of roughly 100% of net income while maintaining balanced capital allocation.Pentair Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.18B | 4.08B | 4.10B | 4.12B | 3.76B |
| Gross Profit | 1.69B | 1.60B | 1.52B | 1.36B | 1.32B |
| EBITDA | 943.60M | 922.10M | 852.00M | 719.00M | 716.80M |
| Net Income | 653.80M | 625.40M | 622.70M | 480.90M | 553.00M |
Balance Sheet | |||||
| Total Assets | 6.87B | 6.45B | 6.56B | 6.45B | 4.75B |
| Cash, Cash Equivalents and Short-Term Investments | 101.60M | 118.70M | 170.30M | 108.90M | 94.50M |
| Total Debt | 1.64B | 1.77B | 2.09B | 2.40B | 982.30M |
| Total Liabilities | 3.00B | 2.88B | 3.35B | 3.74B | 2.33B |
| Stockholders Equity | 3.87B | 3.56B | 3.22B | 2.71B | 2.42B |
Cash Flow | |||||
| Free Cash Flow | 746.00M | 692.30M | 543.20M | 278.10M | 553.00M |
| Operating Cash Flow | 814.80M | 766.70M | 619.20M | 363.30M | 613.20M |
| Investing Cash Flow | -404.50M | -187.60M | -85.40M | -1.58B | -390.70M |
| Financing Cash Flow | -402.50M | -636.70M | -468.10M | 1.23B | -222.20M |
Pentair Technical Analysis
Negative
87.61
Price Trends
98.23
Negative
101.47
Negative
103.62
Negative
Market Momentum
-3.29
Positive
32.68
Neutral
40.40
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 87.61 is below the 20-day moving average (MA) of 91.76, below the 50-day MA of 98.23, and below the 200-day MA of 103.62, indicating a bearish trend. The MACD of -3.29 indicates Positive momentum. The RSI at 32.68 is Neutral, neither overbought nor oversold. The STOCH value of 40.40 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 40 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 | $14.00B | 26.59 | 20.38% | 1.32% | 2.85% | 3.09% | |
80 Outperform | $9.68B | 27.54 | 17.82% | 0.70% | 4.18% | 16.05% | |
68 Neutral | $14.03B | 26.14 | 17.48% | 0.96% | 0.83% | -1.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $12.46B | 33.29 | 4.18% | 0.97% | -4.99% | 22.16% | |
60 Neutral | $11.62B | 50.02 | 6.19% | ― | 5.52% | 9.03% | |
59 Neutral | $6.32B | -28.04 | -8.50% | ― | 0.27% | -159.24% |
* Industrials Sector Average
PNR
Pentair
85.93
-0.03
-0.03%
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RRX
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60.01%
MIDD
The Middleby
133.88
-18.88
-12.36%
WTS
Watts Water Technologies
290.30
87.84
43.38%
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.