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Pentair (PNR)
NYSE:PNR
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Pentair (PNR) AI Stock Analysis

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PNR

Pentair

(NYSE:PNR)

Rating:76Outperform
Price Target:
$117.00
▲(5.75% Upside)
Pentair's strong financial performance and positive earnings call are the primary drivers of its favorable score. Technical indicators show mixed momentum, and the stock appears overvalued based on its P/E ratio. While corporate events reflect positive sentiment, they have minimal impact relative to other factors.
Positive Factors
Company Transformation
The pullback provides an opportunity to own a business in the midst of a transformation to a high-quality company with impressive margins, above-market growth characteristics, strong FCF generation, differentiated earnings power, and relative multiple expansion.
Margin Expansion
Upgrading PNR to Outperform on a meaningful margin expansion opportunity to at/near best-in-class levels.
Tariff Management
PNR staying ahead of the curve on offsetting tariffs, maintaining strong margin execution with additional support from transformation.
Negative Factors
Consumer Spending
Shares are pressured until consumer spending turns.
Housing Market
Continued pressure on other residential businesses is expected due to reliance on new and existing home sales and foodservice exposure.
Interest Rates
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.

Pentair (PNR) vs. SPDR S&P 500 ETF (SPY)

Pentair Business Overview & Revenue Model

Company DescriptionPentair plc is a global water solutions company that provides innovative products, services, and solutions to customers in various sectors, including residential, commercial, industrial, and agricultural markets. The company operates through two primary segments: Water Quality Systems and Water Solutions. Pentair's core products include water filtration systems, pumps, and valves, as well as water treatment solutions that enhance the quality and safety of water for both drinking and recreational purposes.
How the Company Makes MoneyPentair 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 Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Pentair's earnings call reflected a strong performance with record financial metrics and increased guidance, supported by significant transformation savings and strategic growth initiatives. However, challenges remain in certain segments, particularly in Water Solutions and residential markets, compounded by ongoing tariff impacts.
Q2-2025 Updates
Positive Updates
Record Quarter Performance
Pentair delivered a record quarter across all four metrics: sales, adjusted operating income, return on sales, and adjusted EPS. Sales increased by 2%, adjusted operating income rose by 9%, return on sales expanded by 170 basis points to 26.4%, and adjusted EPS was up 14% to $1.39.
Increased Full Year Guidance
Driven by continued confidence in their strategy, Pentair increased the full year 2025 guidance. Sales growth is expected to be approximately 1% to 2%, and adjusted EPS is projected to be approximately $4.75 to $4.85, up 11% at the midpoint versus full year 2024.
Record Free Cash Flow
Pentair generated record free cash flow of $596 million in Q2, up 14% year-over-year, and repurchased $75 million of shares.
Transformation Savings
Since the beginning of 2023, Pentair has delivered over $200 million in transformation savings, net of investments, with $44 million driven in the first half of the year.
Pool Segment Growth
Pool sales increased by 9% to $427 million, driven by price, volume, and the Q4 2024 Gulfstream acquisition. Segment income was up 14%, and return on sales increased by 160 basis points to 35.7%.
Negative Updates
Decline in Water Solutions Sales
Water Solutions sales declined by 4% to $298 million, driven primarily by lower volume and softer end markets within foodservice. Segment income also declined by 4%.
Challenges in Residential Markets
Residential sales in the Flow segment were down 1% due to higher interest rates, and residential sales in Water Solutions were down 6% year-over-year due to a sluggish U.S. housing market.
Impact of Tariffs
Inflation included a $37 million impact, with about $15 million related to tariffs. Tariff challenges continue, with an updated 2025 impact expected to be approximately $75 million.
Strategic Divestitures
Pentair strategically divested its small commercial services business to focus on higher-margin filtration and ICE businesses, resulting in a $20 million revenue loss per quarter in Q3 and Q4.
Company Guidance
During the Pentair Second Quarter 2025 Earnings Conference Call, the company reported record quarterly results across several key financial metrics, including a 2% increase in sales to $1.1 billion, a 9% rise in adjusted operating income to $297 million, a 170 basis point expansion in return on sales to 26.4%, and a 14% increase in adjusted earnings per share (EPS) to $1.39. The Pool segment notably grew by 9%. Additionally, Pentair achieved record free cash flow of $596 million and repurchased $75 million in shares. The company revised its full-year 2025 guidance upward, now expecting sales growth of 1% to 2% and adjusted EPS between $4.75 and $4.85, reflecting an 11% increase at the midpoint compared to 2024. These results were driven by transformation initiatives, strategic investments, and effective price management, even amid challenging global economic conditions.

Pentair Financial Statement Overview

Summary
Pentair showcases a strong financial profile with robust profitability margins, balanced leveraging, and healthy cash flows. However, past significant debt levels pose a potential 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.10B4.08B4.10B4.12B3.76B3.02B
Gross Profit1.63B1.60B1.52B1.36B1.32B1.06B
EBITDA887.80M922.10M852.00M719.00M716.80M531.10M
Net Income609.40M625.40M622.70M480.90M553.00M358.60M
Balance Sheet
Total Assets6.48B6.45B6.56B6.45B4.75B4.20B
Cash, Cash Equivalents and Short-Term Investments143.00M118.70M170.30M108.90M94.50M82.10M
Total Debt1.51B1.77B2.09B2.40B982.30M926.80M
Total Liabilities2.81B2.88B3.35B3.74B2.33B2.09B
Stockholders Equity3.67B3.56B3.22B2.71B2.42B2.11B
Cash Flow
Free Cash Flow837.00M692.30M543.20M278.10M553.00M511.40M
Operating Cash Flow902.80M766.70M619.20M363.30M613.20M573.60M
Investing Cash Flow-196.20M-187.60M-85.40M-1.58B-390.70M-117.90M
Financing Cash Flow-755.00M-636.70M-468.10M1.23B-222.20M-435.90M

Pentair Technical Analysis

Technical Analysis Sentiment
Positive
Last Price110.64
Price Trends
50DMA
105.10
Positive
100DMA
99.66
Positive
200DMA
98.30
Positive
Market Momentum
MACD
1.25
Negative
RSI
60.73
Neutral
STOCH
60.11
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 110.64 is above the 20-day moving average (MA) of 106.58, above the 50-day MA of 105.10, and above the 200-day MA of 98.30, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 60.73 is Neutral, neither overbought nor oversold. The STOCH value of 60.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$9.33B30.0817.75%0.68%2.96%12.62%
78
Outperform
$14.28B29.9619.62%1.25%0.75%-2.74%
77
Outperform
$10.45B29.5914.59%9.69%54.29%
76
Outperform
$18.04B29.1817.15%0.89%-0.25%-7.32%
71
Outperform
$7.19B18.0312.06%-1.70%10.24%
64
Neutral
$10.73B15.747.64%2.01%2.76%-15.10%
62
Neutral
$9.70B38.863.84%0.96%-7.88%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PNR
Pentair
110.64
25.00
29.19%
GNRC
Generac Holdings
181.30
38.93
27.34%
GGG
Graco
85.87
5.53
6.88%
RRX
Regal Rexnord
145.56
-0.95
-0.65%
MIDD
The Middleby
144.43
12.62
9.57%
WTS
Watts Water Technologies
280.31
90.89
47.98%

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.

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: Aug 05, 2025