Pentair plc (PNR) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on PNR

Pentair plc's recent performance has been impacted by several negative factors. ProShare Advisors LLC reduced its stake in the company by 9.6%, selling 176,646 shares during the quarter. Additionally, the company's Q4 earnings report showed modest growth, with sales expected to rise 3.2% to $1B and EPS of $1.17. Despite beating Q4 earnings and revenue estimates, with quarterly earnings of $1.18 per share, investor sentiment remains cautious. Several institutional investors, including Assenagon Asset Management S.A. and Squarepoint Ops LLC, have also decreased their holdings in the company.

1.c. Company Highlights

Last Price	97.52
Change Percentage	0.17%
Open	97.59
Previous Close	97.35
Market Cap ( Millions)	15958
Volume	1541704
Year High	113.95
Year Low	74.25
M A 50	104.17
M A 200	104.15

FCF Yield	4.70%
Dividend Yield	1.05%
ROE	17.48%
Debt / Equity	42.35%
Net Debt / EBIDTA	162.89%
Price To Book	4.12
Price Earnings Ratio	24.37
Price To FCF	21.27
Price To sales	3.82
EV / EBITDA	18.54

2. Pentair's Q4 2025 Earnings: A Strong Finish to a Record Year

Pentair delivered a robust financial performance in Q4 2025, with sales growth of 5% and adjusted operating profit increasing by 9%. The company's return on sales (ROS) expanded by 90 basis points to 24.7%, and adjusted EPS rose 9% to $1.18. For the full year, Pentair achieved record annual sales, adjusted operating income, ROS, and adjusted EPS. The company's free cash flow was $748 million, and it returned $225 million to shareholders through share repurchases.

Publication Date: Feb -04

                                    📋 Highlights
                                    Strong Q4 Performance::
                                                Delivered 5% sales growth, 9% adjusted EPS increase to $1.18, and 90 bps ROS expansion to 24.7% in Q4.
Record Full-Year Free Cash Flow::
                                                Generated $748 million in free cash flow with $225 million returned to shareholders via buybacks and dividends.
2026 Guidance::
                                                Adjusted EPS guidance of $5.25–$5.40 (7–10% YoY growth) and 3–4% sales growth, driven by flow and pool segments.
Transformation Savings::
                                                $70 million in 2026 cost savings from transformation initiatives, plus $10–$15 million from the hydro deal, boosting margins.
ROIC and Leverage::
                                                Maintained 16.7% ROIC and a 1.4x leverage ratio, reflecting disciplined capital allocation and financial stability.

                                

Segmental Performance

The company's flow segment saw a 9% increase in sales, while the pool segment recorded an 11% increase. The water solutions segment was slightly offset by a decline in sales. The combined residential flow and water solutions business is expected to see substantial margin improvement over the next several years, driven by operational efficiencies and comprehensive solutions to channel partners.

Guidance and Outlook

Pentair introduced its adjusted EPS guidance range for 2026, expecting a year-over-year increase of 7% to 10%. The company expects total sales to be up approximately 3% to 4%, with flow sales increasing by mid-single digits to high single digits. The guidance assumes a balanced contribution from flow, water solutions, and pool, with no residential recovery factored in. According to John Stauch, "We're confident in our business model and the resilience of our end markets."

Valuation Metrics

Pentair's current valuation metrics indicate a P/E Ratio of 23.69, P/B Ratio of 4.0, and EV/EBITDA of 18.07. The company's ROE is 17.48%, and ROIC is 12.46%. The actual EPS for Q4 came out at $1.01, missing estimates of $1.17. Analysts estimate revenue growth at 4.6% for the next year. With a dividend yield of 1.08% and free cash flow yield of 4.84%, Pentair's valuation suggests a relatively stable and profitable investment opportunity.

Transformation and Cost Savings

The company is driving transformation initiatives, expecting to deliver $70 million in cost savings in 2026, plus an additional $10 to $15 million from the hydro deal. As Nick Brazos mentioned, "We have opportunities to drive labor and factory efficiencies that will benefit when volume returns." The sourcing and operational efficiency pipelines for 2026 are robust, with opportunities for organizational excellence as well.

3. NewsRoom

Pentair plc $PNR Shares Sold by ProShare Advisors LLC

Feb -09

Source: defenseworld.net

Pentair Q4 Earnings & Sales Surpass Estimates, Increase Y/Y

Feb -05

Source: zacks.com

Pentair plc (PNR) Q4 2025 Earnings Call Transcript

Feb -03

Source: seekingalpha.com

Pentair (PNR) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -03

Source: zacks.com

Pentair plc (PNR) Beats Q4 Earnings and Revenue Estimates

Feb -03

Source: zacks.com

Pentair Announces New Executive Leadership Roles to Accelerate Growth and Enhance Customer Focus

Feb -03

Source: businesswire.com

Pentair Reports Strong Fourth Quarter and Full Year 2025 Results

Feb -03

Source: businesswire.com

Truist Financial Corp Has $6.49 Million Position in Pentair plc $PNR

Feb -03

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.82%)

6. Segments

Flow

Expected Growth: 3.8%

Pentair plc's 3.8% growth is driven by increasing demand for water treatment solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, operational efficiency, and cost savings initiatives have contributed to its growth. Furthermore, the rising need for sustainable and energy-efficient solutions in the industrial and residential sectors has also boosted Pentair's revenue.

Pool

Expected Growth: 3.5%

Pentair plc's Pool segment growth is driven by increasing demand for residential pool equipment and accessories, particularly in the US and Europe. Rising consumer spending on outdoor living and recreation, coupled with growing adoption of energy-efficient and automation technologies, contribute to the 3.5% growth rate.

Water Solutions

Expected Growth: 4.2%

Pentair plc's Water Solutions segment growth of 4.2% is driven by increasing demand for water treatment and filtration systems, driven by urbanization, industrialization, and stringent regulations. Additionally, the segment benefits from the growing need for efficient water management, wastewater reuse, and desalination solutions, as well as the company's strong brand presence and innovative product offerings.

Other

Expected Growth: 3.2%

Pentair plc's 'Other' segment growth of 3.2% is driven by increasing demand for sustainable water solutions, expansion in emerging markets, and strategic acquisitions. Additionally, growth in industrial and commercial markets, as well as investments in digitalization and innovation, contribute to the segment's growth.

7. Detailed Products

Water Treatment

Pentair's water treatment products provide clean water solutions for residential, commercial, and industrial applications.

Filtration Systems

Pentair's filtration systems offer a range of solutions for water, air, and gas filtration in various industries.

Valves and Actuators

Pentair's valves and actuators provide control and automation solutions for industrial processes.

Pumps and Accessories

Pentair's pumps and accessories provide solutions for fluid transfer, circulation, and boosting in various industries.

Aeration Systems

Pentair's aeration systems provide solutions for wastewater treatment, aquaculture, and industrial processes.

Pool and Spa Equipment

Pentair's pool and spa equipment provides solutions for residential and commercial pool and spa owners.

8. Pentair plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Pentair plc operates in a industry with moderate threat of substitutes. The company's products are specialized and have a high switching cost, which reduces the threat of substitutes.

Bargaining Power Of Customers

Pentair plc's customers have low bargaining power due to the company's strong brand reputation and wide range of products.

Bargaining Power Of Suppliers

Pentair plc's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is low in Pentair plc's industry due to high barriers to entry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in Pentair plc's industry is high due to the presence of several established competitors and the need to constantly innovate to stay competitive.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	38.51%
Debt Cost	5.91%
Equity Weight	61.49%
Equity Cost	10.10%
WACC	8.48%
Leverage	62.62%

11. Quality Control: Pentair plc passed 4 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Burckhardt Compression

A-Score: 5.7/10

Value: 4.6

Growth: 7.8

Quality: 7.5

Yield: 5.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

Krones

A-Score: 5.6/10

Value: 5.5

Growth: 6.9

Quality: 6.2

Yield: 3.1

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

Wärtsilä

A-Score: 5.5/10

Value: 2.4

Growth: 6.4

Quality: 7.2

Yield: 3.8

Momentum: 8.5

Volatility: 4.7

1-Year Total Return ->

Weir

A-Score: 5.4/10

Value: 2.6

Growth: 6.1

Quality: 6.1

Yield: 1.9

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

Rational

A-Score: 4.6/10

Value: 1.1

Growth: 6.4

Quality: 8.9

Yield: 2.5

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

Pentair

A-Score: 4.5/10

Value: 1.8

Growth: 4.9

Quality: 7.5

Yield: 1.9

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

6.57%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.48%

Pentair plc - IE00BLS09M33

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PNR

1.c. Company Highlights

Expensive

Better Quality

Strong Momentum

Earnings Beats

Revenues Miss

Average Yield

Revenues Beats

Less Volatile

Medium Volatility

Average Quality

Stable Momentum

2. Pentair's Q4 2025 Earnings: A Strong Finish to a Record Year

Segmental Performance

Guidance and Outlook

Valuation Metrics

Transformation and Cost Savings

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.82%)

6. Segments

Flow

Expected Growth: 3.8%

Pool

Expected Growth: 3.5%

Water Solutions

Expected Growth: 4.2%

Other

Expected Growth: 3.2%

7. Detailed Products

Water Treatment

Filtration Systems

Valves and Actuators

Pumps and Accessories

Aeration Systems

Pool and Spa Equipment

8. Pentair plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Pentair plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

97.52$

Current Price

97.52$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA