Now trading at a price of $53.81, Pentair has moved -2.4% so far today. In contrast, the S&P 500 index moved -1.0%. Read below for a basic value analysis of Pentair.
Pentair shares moved 4.4% over the last 52 weeks, with a high of $60.85 and a low of $38.55. During this time, the stock outperformed the S&P 500 index by 12.0%. As of January 2022, the company's 50-day average price is $54.0. Pentair plc provides various water solutions worldwide. The mid-cap Industrials company has 11,250 full time employees and is based in London, United Kingdom. Pentair has returned a 1.5% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding with a Highly Leveraged Balance Sheet:
2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
---|---|---|---|---|
Revenue (MM) | $2,957 | $3,018 | $3,765 | $4,122 |
Revenue Growth | n/a | 2.05% | 24.75% | 9.48% |
Gross Margins | 35.6% | 35.0% | 35.0% | 33.1% |
Gross Margins Growth | n/a | -1.69% | 0.0% | -5.43% |
Operating Margins | 14.6% | 15.3% | 16.9% | 14.4% |
Operating Margins Growth | n/a | 4.79% | 10.46% | -14.79% |
Net Margins | 12.03% | 11.88% | 14.69% | 11.67% |
Net Margins Growth | n/a | -1.25% | 23.65% | -20.56% |
Earnings Per Share | $2.09 | $2.14 | $3.3 | $2.92 |
EPS Growth | n/a | 2.39% | 54.21% | -11.52% |
Diluted Shares (MM) | 170 | 167 | 168 | 165 |
Free Cash Flow (MM) | $294 | $511 | $553 | $278 |
FCF Growth | n/a | 73.65% | 8.13% | -49.71% |
Capital Expenditures (MM) | -$58 | -$62 | -$60 | -$85 |
Net Debt / EBITDA | 1.84 | 1.43 | 1.12 | 3.07 |
Pentair Is Too Expensive at Current Levels:
Compared to the Industrials sector's average of 20.49, Pentair has a trailing twelve month P/E ratio of 18.4 and, according to its EPS guidance of 3.99, an expected P/E ratio of 13.5. Pentair's PEG ratio is 0.91 based on its 13.8% compound average growth rate of historical and projected earnings per share. This suggests that company's shares are undervalued.
Furthermore, Pentair is likely undervalued in terms of its equity because its P/B ratio is 3.3 compared to its sector average of 3.78. The company's shares are currently trading 73.1% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 2.61 * 16.458) = $31.09
Pentair Is the Subject of Mixed Market Indicators:
15 analysts are following Pentair and have set target prices ranging from $39.0 to $75.0 per share. On average, they have given the company a rating of buy. At the current price of $53.81, PNR is trading -9.52% away from its average analyst target price of $59.47 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 5.1% of the company's shares are tied to short positions. Institutions own 95.7% of Pentair's shares, while the insider ownership rate stands at 0.42%. The biggest shareholder is the Vanguard Group, Inc. with a 12% stake in the company worth approximately $1,052,200,659.