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Pentair (PNR)
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Pentair (PNR) AI Stock Analysis

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PNR

Pentair

(NYSE:PNR)

Rating:76Outperform
Price Target:
$117.00
â–²(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 (PNR) vs. SPDR S&P 500 ETF (SPY)

Pentair Business Overview & Revenue Model

Company DescriptionPentair 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 MoneyPentair 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 Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: -1.92%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Pentair reported a strong quarter with record financial metrics and increased guidance for 2025. The company's transformation efforts are yielding significant savings, and free cash flow generation is robust. However, challenges persist in the Water Solutions segment and residential markets. Tariff impacts remain a concern, although mitigated compared to prior estimates.
Q2-2025 Updates
Positive Updates
Record Q2 Financial Results
Pentair delivered a record quarter across all four key financial metrics: sales, adjusted operating income, return on sales, and adjusted EPS. Sales increased by 2% with a 9% growth in the Pool segment. Adjusted operating income rose by 9%, ROS expanded by 170 basis points to 26.4%, and adjusted EPS increased by 14% to $1.39.
Increased 2025 Guidance
The company increased its full-year 2025 guidance, expecting sales growth of approximately 1% to 2% and adjusted EPS to be approximately $4.75 to $4.85, up 11% at the midpoint versus full year 2024.
Transformation Savings
Since 2023, Pentair has delivered over $200 million in transformation savings, including $44 million in the first half of 2025. The company expects $80 million in savings for 2025, with more savings expected in 2026.
Strong Free Cash Flow
Pentair generated record free cash flow of $596 million in Q2, an increase of 14% year-over-year, and repurchased $75 million of shares in Q2.
HOPE Hydration Investment
Pentair made an incremental investment in HOPE Hydration, a startup focused on delivering free water through digitally connected stations, using Pentair's Everpure technology.
Negative Updates
Challenges in Water Solutions Segment
Water Solutions sales declined 4% to $298 million in Q2, driven by lower volume, with commercial sales down 3% and residential sales down 6% year-over-year.
Softness in Residential Markets
The softer residential end market has pressured results, and the company expects improvements only with lower interest rates.
Tariff Impacts
Pentair updated its 2025 tariff impact to be approximately $75 million, with a potential additional $10 million related to copper and other tariffs.
Company Guidance
During the Pentair Second Quarter 2025 Earnings Conference Call, the company highlighted its record performance across key financial metrics despite challenging global conditions. In Q2, Pentair achieved a 2% increase in sales, with Pool sales growing by 9%. Adjusted operating income surged by 9%, and return on sales expanded by 170 basis points to 26.4%. Additionally, adjusted EPS rose by 14% to $1.39. The company also reported record free cash flow and conducted $75 million in share repurchases during the quarter. Pentair raised its full-year 2025 guidance, now expecting sales growth of 1% to 2% and adjusted EPS between $4.75 and $4.85, marking an 11% increase at the midpoint compared to 2024. The company outlined its strategic focus on operational efficiency and investment in growth initiatives, including its partnership with HOPE Hydration, aimed at delivering free water through Everpure technology. Looking ahead, Pentair remains optimistic about achieving continued margin expansion and transformation savings, targeting a 26% return on sales by the end of 2026.

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
85
Very Positive
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
75
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.08B4.10B4.12B3.76B3.02B
Gross Profit1.60B1.52B1.36B1.32B1.06B
EBITDA922.10M852.00M719.00M716.80M531.10M
Net Income625.40M622.70M480.90M553.00M358.60M
Balance Sheet
Total Assets6.45B6.56B6.45B4.75B4.20B
Cash, Cash Equivalents and Short-Term Investments118.70M170.30M108.90M94.50M82.10M
Total Debt1.65B2.09B2.35B894.10M839.60M
Total Liabilities2.88B3.35B3.74B2.33B2.09B
Stockholders Equity3.56B3.22B2.71B2.42B2.11B
Cash Flow
Free Cash Flow692.30M543.20M278.10M553.00M511.40M
Operating Cash Flow766.70M619.20M363.30M613.20M573.60M
Investing Cash Flow-187.60M-85.40M-1.58B-390.70M-117.90M
Financing Cash Flow-636.70M-468.10M1.23B-222.20M-435.90M

Pentair Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price102.85
Price Trends
50DMA
101.19
Positive
100DMA
94.06
Positive
200DMA
97.36
Positive
Market Momentum
MACD
1.13
Positive
RSI
48.00
Neutral
STOCH
60.91
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 Risk Analysis

Pentair disclosed 37 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

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$8.41B28.7717.61%0.72%3.89%8.17%
76
Outperform
$13.87B29.2112.73%1.52%1.66%-17.18%
76
Outperform
$16.86B28.3017.15%0.95%-0.25%-7.32%
76
Outperform
$12.51B25.4619.27%0.84%6.99%23.25%
74
Outperform
$10.51B19.9127.60%1.81%-3.53%-7.46%
59
Neutral
AU$1.65B10.3411.24%3.42%6.75%3.18%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PNR
Pentair
102.85
15.25
17.41%
IEX
IDEX
183.66
-19.92
-9.78%
ITT
ITT
158.97
19.57
14.04%
AOS
A. O. Smith Corporation
73.94
-9.02
-10.87%
WTS
Watts Water Technologies
251.97
47.95
23.50%

Pentair Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Pentair Restructures Sustainability Leadership Amid Executive Changes
Neutral
Jun 12, 2025

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.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Pentair Shareholders Approve Key Proposals at AGM
Positive
May 6, 2025

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.

Executive/Board Changes
Pentair Appoints New Chief Accounting Officer
Neutral
May 6, 2025

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.

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.Date of analysis: Jul 24, 2025