Pentair Plc

PNR

Special Industry Machinery (No Metalworking Machinery)

Mkt Cap

$13.08B

PE

20.89

Debt

$2.102B

Cash

$109.1M

EV

$15.07B

FCF

$541.3M

Market Cap

$13.08B

P/E Ratio

20.89

Debt

$2.102B

Cash

$109.1M

EV

$15.07B

FCF

$541.3M

Charts data: {"Earnings":[{"time":"2014-12-30","value":214900000},{"time":"2015-12-30","value":-76400000},{"time":"2016-12-30","value":522200000},{"time":"2017-12-30","value":666500000},{"time":"2018-12-30","value":347400000},{"time":"2019-12-30","value":355700000},{"time":"2020-12-30","value":358600000},{"time":"2021-12-30","value":553000000},{"time":"2022-12-30","value":480900000},{"time":"2023-12-30","value":622700000}],"Sales":[{"time":"2014-12-30","value":7039000000},{"time":"2015-12-30","value":6449000000},{"time":"2016-12-30","value":4890000000},{"time":"2017-12-30","value":4936500000},{"time":"2018-12-30","value":2965100000},{"time":"2019-12-30","value":2957200000},{"time":"2020-12-30","value":3017800000},{"time":"2021-12-30","value":3764800000},{"time":"2022-12-30","value":4121800000},{"time":"2023-12-30","value":4104500000}],"Net Margins":[{"time":"2014-12-30","value":0.030529904816025005},{"time":"2015-12-30","value":-0.011846797953171034},{"time":"2016-12-30","value":0.10678936605316973},{"time":"2017-12-30","value":0.13501468651878862},{"time":"2018-12-30","value":0.11716299618899868},{"time":"2019-12-30","value":0.12028269985121061},{"time":"2020-12-30","value":0.11882828550599775},{"time":"2021-12-30","value":0.14688695282617933},{"time":"2022-12-30","value":0.11667232762385366},{"time":"2023-12-30","value":0.1517115361188939}],"Assets":[{"time":"2014-12-30","value":10655200000},{"time":"2015-12-30","value":11857000000},{"time":"2016-12-30","value":11534800000},{"time":"2017-12-30","value":8633700000},{"time":"2018-12-30","value":3806500000},{"time":"2019-12-30","value":4139500000},{"time":"2020-12-30","value":4197200000},{"time":"2021-12-30","value":4753600000},{"time":"2022-12-30","value":6447500000},{"time":"2023-12-30","value":6563300000}],"Stockholders Equity":[{"time":"2014-12-30","value":4663800000},{"time":"2015-12-30","value":4008800000},{"time":"2016-12-30","value":4254400000},{"time":"2017-12-30","value":5037800000},{"time":"2018-12-30","value":1836100000},{"time":"2019-12-30","value":1953900000},{"time":"2020-12-30","value":2106300000},{"time":"2021-12-30","value":2421900000},{"time":"2022-12-30","value":2708100000},{"time":"2023-12-30","value":3217100000}],"ROE":[{"time":"2014-12-30","value":0.046078305244650286},{"time":"2015-12-30","value":-0.019058072241069646},{"time":"2016-12-30","value":0.12274351259872132},{"time":"2017-12-30","value":0.13229981341061575},{"time":"2018-12-30","value":0.18920538097053538},{"time":"2019-12-30","value":0.18204616408209223},{"time":"2020-12-30","value":0.17025115130798082},{"time":"2021-12-30","value":0.22833312688385152},{"time":"2022-12-30","value":0.17757837598316162},{"time":"2023-12-30","value":0.19355941686612166}],"ROA":[{"time":"2014-12-30","value":0.07995157294091149},{"time":"2015-12-30","value":0.014944758370582779},{"time":"2016-12-30","value":0.0607466102576551},{"time":"2017-12-30","value":0.07885379385431507},{"time":"2018-12-30","value":0.11472481282017602},{"time":"2019-12-30","value":0.10448121753835005},{"time":"2020-12-30","value":0.10993042981034976},{"time":"2021-12-30","value":0.1339826657691013},{"time":"2022-12-30","value":0.09233036060488561},{"time":"2023-12-30","value":0.11262627032133225}]}

Pentair plc provides various water solutions worldwide. The company operates through three segments: Pool, Water Solutions, Industrial & Flow Technologies. It 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 use in residential whole home water filtration, drinking water filtration, water softening solutions, commercial total water management and filtration, and foodservice operations. The company also 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 the Everpure, KBI, Kreepy Krauly, Manitowoc Ice, Pleatco, RainSoft, and Sta-Rite; and Pentair, Aurora, Berkeley, Codeline, Fairbanks-Nijhuis, Haffmans, Hydromatic, Hypro, Jung Pumpen, Myers, Sta-Rite, Shurflo, Südmo, and X-Flow brands. The company was founded in 1966 and is headquartered in London, the United Kingdom.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
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3/31/22
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12/31/21
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3/31/21
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12/31/20
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10-K
12/31/19
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9/30/19
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6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Pentair Plc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$541.3M	$508.8M	$478.2M	$449.4M	$422.4M	$397M	$373.1M	$350.7M	$329.6M	$309.8M	$291.2M	$2.912B
DCF		$442.4M	$361.6M	$295.5M	$241.5M	$197.4M	$161.3M	$131.8M	$107.8M	$88.07M	$71.98M	$719.8M
Value	$2.819B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 3%

Earnings Stability -0.94%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-1.2%	11%	14%	12%	12%	12%	15%	12%	15%	15%
ROA	1.5%	6.1%	7.9%	11%	10%	11%	13%	9.2%	11%	11%
ROE	-1.9%	12%	13%	19%	18%	17%	23%	18%	19%	19%

What is the average Net Margin?

The average Net Margin over the past 5 years is +12.86%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.54%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +11.13%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.07%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +19.02%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.19%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	7.65	5.78	2.40	1.93	3.53	1.66	1.63	8.38	3.68	3.88
Debt Equity	1.17	1.01	0.29	0.43	0.53	0.40	0.37	0.86	0.62	0.63
MIN
Graham Stability	-	-	100%	94%	69%	79%	100%	100%	100%	69%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.88.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.67.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.69.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	-2.5%	6.7%	11%	-0.42%	3.7%
Net Income	2.5%	12%	20%	29%	4.5%
Stockholders Equity	-3.9%	12%	15%	19%	3.5%
FCF	-4.3%	5.9%	2.1%	95%	7.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +6.72%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +3.71%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +12.38%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +4.54%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +11.87%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +3.55%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +5.86%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +7.49%.