Pentair (PNR) AI Stock Analysis

• Market Cap: $17.48B
• Dividend Yield: 0.92%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 29.1
• Beta (1Y): 1.23
• Revenue Growth: -0.25%
• EPS Growth: -7.32%
• Country: US
• Employees: 9,750
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 1.39
• Shares Outstanding: 163,931,260
• 10 Day Avg. Volume: 1,687,758
• 30 Day Avg. Volume: 1,820,861
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 4.48
• Enterprise Value/Gross Profit: 11.27
• Enterprise Value/Ebitda: 20.70
• 1Y Price Target: $116.79
• Price Target Upside: 9.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 76 Outperform
• Price Target: $117.00 ▲(9.73% 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

Earnings Guidance

The company raised 2025 guide at the midpoint by $0.075, more than the $0.06 beat and more than expected.

Marginal Improvement

The divestiture of KBI is expected to uplift total company margin profile by roughly 40bps.

Transformation and Growth

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.

Negative Factors

Consumer Spending

Shares are pressured until consumer spending turns.

End Market Demand

There are few catalysts for end market demand to improve near-term given weak consumer fundamentals and high interest rates.

Residential Market Exposure

Continued pressure on other residential businesses is expected due to reliance on new and existing home sales and foodservice exposure.

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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.10B	4.08B	4.10B	4.12B	3.76B	3.02B
Gross Profit	1.63B	1.60B	1.52B	1.36B	1.32B	1.06B
EBITDA	887.80M	922.10M	852.00M	719.00M	716.80M	531.10M
Net Income	609.40M	625.40M	622.70M	480.90M	553.00M	358.60M
Balance Sheet
Total Assets	6.48B	6.45B	6.56B	6.45B	4.75B	4.20B
Cash, Cash Equivalents and Short-Term Investments	143.00M	118.70M	170.30M	108.90M	94.50M	82.10M
Total Debt	1.51B	1.77B	2.09B	2.40B	982.30M	926.80M
Total Liabilities	2.81B	2.88B	3.35B	3.74B	2.33B	2.09B
Stockholders Equity	3.67B	3.56B	3.22B	2.71B	2.42B	2.11B
Cash Flow
Free Cash Flow	837.00M	692.30M	543.20M	278.10M	553.00M	511.40M
Operating Cash Flow	902.80M	766.70M	619.20M	363.30M	613.20M	573.60M
Investing Cash Flow	-196.20M	-187.60M	-85.40M	-1.58B	-390.70M	-117.90M
Financing Cash Flow	-755.00M	-636.70M	-468.10M	1.23B	-222.20M	-435.90M

Pentair Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 106.63 is above the 20-day moving average (MA) of 103.68, above the 50-day MA of 102.64, and above the 200-day MA of 97.84, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 88.93 is Negative, 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
ITT	79 Outperform	$13.06B	26.33	20.17%	0.80%	6.69%	21.44%
PNR	76 Outperform	$17.48B	29.12	17.15%	0.92%	-0.25%	-7.32%
AOS	76 Outperform	$10.00B	19.89	27.60%	1.88%	-3.53%	-7.46%
WTS	74 Outperform	$9.10B	29.33	17.75%	0.66%	2.96%	12.62%
Sector *	71 Outperform	¥268.21B	15.07	8.32%	2.78%	6.19%	11.34%
IEX	62 Neutral	$12.59B	26.99	12.25%	1.67%	4.73%	-19.15%

Pentair Corporate Events

Pentair Restructures Sustainability Leadership Amid Executive Changes

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.