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:
|Gross Margins Growth||n/a||-1.69%||0.0%||-5.43%|
|Operating Margins Growth||n/a||4.79%||10.46%||-14.79%|
|Net Margins Growth||n/a||-1.25%||23.65%||-20.56%|
|Earnings Per Share||$2.09||$2.14||$3.3||$2.92|
|Diluted Shares (MM)||170||167||168||165|
|Free Cash Flow (MM)||$294||$511||$553||$278|
|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.