Investment Thesis
Pentair demonstrates exceptional financial health with strong profitability metrics (40.5% gross margin, 20.5% operating margin) and robust cash generation (746M FCF). The company exhibits solid balance sheet strength with conservative leverage (0.42x debt/equity) and excellent interest coverage, though the extreme revenue growth figure (6117.3% YoY) warrants investigation into potential acquisition activity or accounting adjustments that may obscure underlying organic growth.
PNR Strengths
- Exceptional free cash flow generation at 746M with 17.9% FCF margin demonstrating operational efficiency
- Strong profitability across all levels (40.5% gross, 20.5% operating, 15.7% net margin) indicating pricing power and cost control
- Conservative leverage profile with 0.42x debt/equity ratio and exceptional 28.5x interest coverage providing financial flexibility
- Solid return metrics with 16.9% ROE and 9.5% ROA indicating efficient capital deployment
PNR Risks
- Extreme revenue growth rate (6117.3% YoY) suggests significant one-time events or major acquisition that obscures organic growth visibility and comparability
- Quick ratio of 0.95x below 1.0x indicates potential short-term liquidity constraints relative to current liabilities
- High insider trading activity (39 Form 4 filings in 90 days) may signal uncertainty or valuation concerns among company leadership
- Modest cash position (101.6M) relative to 6.9B asset base limits operational flexibility for unexpected disruptions
Key Metrics to Watch
- Organic revenue growth rate excluding acquisition impacts
- Free cash flow sustainability and conversion of operating cash flow
- Debt reduction trajectory and leverage normalization targets
- Gross margin sustainability amid potential cost inflation
PNR Financial Metrics
PNR Profitability Ratios
PNR Balance Sheet & Liquidity
PNR 5-Year Financial Trend
5-Year Trend Summary: PENTAIR plc's revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.75 reflects profitable operations.
PNR Growth Metrics (YoY)
PNR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $993.4M | $139.6M | $0.84 |
| Q2 2025 | $1.1B | $148.5M | $0.90 |
| Q1 2025 | $1.0B | $133.3M | $0.80 |
| Q3 2024 | $993.4M | $132.1M | $0.79 |
| Q2 2024 | $1.1B | $152.9M | $0.92 |
| Q1 2024 | $1.0B | $129.7M | $0.79 |
| Q3 2023 | $1.0B | $115.4M | $0.70 |
| Q2 2023 | $1.1B | $152.9M | $0.92 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
PNR Capital Allocation
PNR SEC Filings
Access official SEC EDGAR filings for PENTAIR plc (CIK: 0000077360)