Want to see PNR full AI Analyst Report?
Top Page
Pentair
(NYSE:PNR)
Select Model
Select Model
Rating:68Neutral
Price Target:
$68.00
â–²(10.26% Upside)
Action:Downgraded
Date:10/28/26
The score is driven primarily by solid fundamentals—meaningfully improved margins and a healthier balance sheet versus prior years—tempered by soft recent revenue and weaker TTM cash flow momentum. Earnings-call takeaways are constructive (EPS beat, reaffirmed EPS guidance, Taco growth outlook) but constrained by guidance for sales/operating declines, ongoing Pool weakness, and higher leverage after the acquisition. Technically, the stock looks overbought in the short term and remains below longer-term moving averages, while valuation appears reasonable with a modest dividend yield.
Positive Factors
Margin Expansion
Sustained gross and EBIT margin expansion indicates that Pentair is capturing productivity, pricing, and mix benefits across its water businesses. A stronger margin base can support reinvestment, protect earnings during softer demand, and improve the durability of future cash generation.
Negative Factors
Revenue and Pool Weakness
Pentair's improved profitability is occurring alongside weak top-line momentum, with Pool remaining a substantial drag on consolidated results. Continued revenue contraction can reduce operating leverage, limit margin recovery, and make the company more dependent on productivity and price actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Sustained gross and EBIT margin expansion indicates that Pentair is capturing productivity, pricing, and mix benefits across its water businesses. A stronger margin base can support reinvestment, protect earnings during softer demand, and improve the durability of future cash generation.
Read all positive factors
Pentair Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows operating profit for each business unit after core costs, revealing which segments are the most profitable and whether management is improving efficiency or facing margin pressure from costs or pricing.
Shows operating profit for each business unit after core costs, revealing which segments are the most profitable and whether management is improving efficiency or facing margin pressure from costs or pricing.
Data provided by:
The Fly
The FlyPentair (PNR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.94B
Dividend Yield1.73%
Average Volume (3M)2.72M
Price to Earnings (P/E)16.4
Beta (1Y)1.01
Revenue Growth-2.15%
EPS Growth8.39%
CountryUS
Employees9,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)3.79
Shares Outstanding159,637,950
10 Day Avg. Volume3,094,992
30 Day Avg. Volume2,718,539
Financial Highlights & Ratios
PEG Ratio4.70
Price to Book (P/B)4.42
Price to Sales (P/S)4.09
P/FCF Ratio22.91
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue2.54
Enterprise Value/Gross Profit6.15
Enterprise Value/Ebitda11.25
Forecast
1Y Price Target
$65.36Price Target Upside5.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)4.68
Revenue Forecast (FY)$4.01B
Pentair Business Overview & Revenue Model
Company Description
Pentair plc engages in the provision of water solutions for residential, commercial, industrial, infrastructure, and agricultural applications. It operates through the following segments: Flow, Water Solutions, and Pool. The Flow segment designs, ...
How the Company Makes Money
Pentair makes money primarily by selling water-related equipment and integrated systems, with revenue recognized mainly from product sales shipped to customers through its distribution and channel partners. Key revenue streams typically include: (...
Pentair Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 02, 2027
Earnings Call Sentiment Positive
The call was broadly positive. Pentair exceeded third-quarter adjusted EPS guidance, generated strong free cash flow, delivered sales and margin growth in Flow and Water Solutions, completed the pool channel destock, reaffirmed full-year EPS guidance, and added a fast-growing Taco platform. These positives were partly offset by continued Pool revenue and income declines, delayed food and beverage spending, residential housing headwinds, nonrecurring tariff refunds, and higher leverage following the acquisition.Positive Updates
Q3 Earnings Beat Guidance
Third-quarter sales were $976 million, adjusted operating income was $242 million, adjusted operating margin was 24.8%, and adjusted EPS was $1.18, above the guidance range of approximately $1.05 to $1.08.
Negative Updates
Core Sales Declined
Third-quarter core sales decreased 5% year over year, as an 18% decrease in Pool more than offset 1% growth in both Flow and Water Solutions.
Read all updates
Q3-2026 Updates
Positive
Negative
Q3 Earnings Beat Guidance
Third-quarter sales were $976 million, adjusted operating income was $242 million, adjusted operating margin was 24.8%, and adjusted EPS was $1.18, above the guidance range of approximately $1.05 to $1.08.
Read all positive updates
Company Guidance
Pentair reaffirmed full-year 2026 adjusted EPS of approximately $4.70, with total sales down approximately 3%, Flow sales up approximately mid single digits, Water Solutions sales up approximately high single digits including the impact of TACO, with core sales approximately flat, pool sales down approximately 18% to 19%, adjusted operating income down approximately 6%, and productivity of approximately $55 million net of volume deleverage and pool growth investments; it does not expect further tariff refunds in the fourth quarter after receiving $43 million year to date. Fourth-quarter sales are expected to be up approximately 7% to 9% inclusive of TACO, core sales down 2% to 3%, Flow sales up approximately low single digits, Water Solutions sales up approximately 40% with core growth of low single digits, pool sales down approximately 12% to 15%, adjusted operating income up approximately 1%, and adjusted EPS of $1.15. TACO’s estimated 2026 sales are approximately $560 million, representing growth of roughly 23%, while 2027 sales are expected to be greater than $620 million or growth of more than 10%, with EBITDA approximately $90 million in 2026 and greater than $105 million in 2027, representing mid teens growth; the acquisition is expected to be accretive to adjusted EPS in 2027. Pool 2026 sell through is estimated at $1.45 billion, up 2% to 3%, while next year sell through is expected to remain about flat at about $1.45 billion, with approximately $180 million of year over year sales growth or about 14% and approximately 30% return on sales for full year 2027; Pentair expects to delever over the next 24 months back into its more normal range of 1.5 to 2x.Pentair Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.97B | 4.18B | 4.08B | 4.10B | 4.12B | 3.76B |
| Gross Profit | 1.64B | 1.69B | 1.60B | 1.52B | 1.36B | 1.32B |
| EBITDA | 894.40M | 943.60M | 922.10M | 852.00M | 719.00M | 716.80M |
| Net Income | 612.20M | 653.80M | 625.40M | 622.70M | 480.90M | 553.00M |
Balance Sheet | ||||||
| Total Assets | 6.67B | 6.87B | 6.45B | 6.56B | 6.45B | 4.75B |
| Cash, Cash Equivalents and Short-Term Investments | 74.00M | 101.60M | 118.70M | 170.30M | 108.90M | 94.50M |
| Total Debt | 1.48B | 1.77B | 1.77B | 2.09B | 2.40B | 982.30M |
| Total Liabilities | 2.81B | 3.00B | 2.88B | 3.35B | 3.74B | 2.33B |
| Stockholders Equity | 3.86B | 3.87B | 3.56B | 3.22B | 2.71B | 2.42B |
Cash Flow | ||||||
| Free Cash Flow | 646.60M | 746.00M | 692.30M | 543.20M | 278.10M | 553.00M |
| Operating Cash Flow | 724.50M | 814.80M | 766.70M | 619.20M | 363.30M | 613.20M |
| Investing Cash Flow | -105.50M | -404.50M | -187.60M | -85.40M | -1.58B | -390.70M |
| Financing Cash Flow | -686.20M | -402.50M | -636.70M | -468.10M | 1.23B | -222.20M |
Pentair Technical Analysis
Positive
61.67
Price Trends
56.43
Positive
63.00
Positive
75.83
Negative
Market Momentum
0.96
Negative
80.96
Negative
91.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNR, the sentiment is Positive. The current price of 61.67 is above the 20-day moving average (MA) of 53.99, above the 50-day MA of 56.43, and below the 200-day MA of 75.83, indicating a neutral trend. The MACD of 0.96 indicates Negative momentum. The RSI at 80.96 is Negative, neither overbought nor oversold. The STOCH value of 91.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNR.
Pentair Risk Analysis
Pentair disclosed 42 risk factors in its most recent earnings report. Pentair reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pentair Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $12.06B | 31.53 | 18.56% | 0.64% | 17.13% | 23.21% | |
77 Outperform | $8.15B | 28.25 | 17.71% | 0.90% | 10.69% | 60.92% | |
69 Neutral | $4.34B | 28.02 | 11.59% | 1.13% | 7.38% | -10.43% | |
69 Neutral | $3.50B | 15.69 | 21.21% | 1.25% | 5.88% | 49.15% | |
68 Neutral | $9.94B | 16.44 | 16.02% | 1.73% | -2.15% | 8.39% | |
67 Neutral | $21.68B | 20.54 | 9.96% | 1.82% | 4.41% | 9.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
PNR
Pentair
64.37
-41.67
-39.30%
FELE
Franklin Electric Co
96.65
2.39
2.54%
MWA
Mueller Water Products
22.13
-3.29
-12.94%
ZWS
Zurn Water Solutions
43.50
-4.04
-8.50%
WTS
Watts Water Technologies
342.87
71.69
26.44%
XYL
Xylem
88.23
-62.61
-41.51%
Pentair Corporate Events
Business Operations and StrategyExecutive/Board Changes
Pentair Names Robert Hau as New Chief Financial Officer
Positive
Sep 22, 2026
On September 21, 2026, Pentair’s board appointed Robert W. Hau as Executive Vice President and Chief Financial Officer, effective November 1, 2026, succeeding interim CFO Robert P. Fishman. Hau, 60, joined Pentair as Senior Vice President, F...
Business Operations and StrategyExecutive/Board Changes
Pentair Adds Independent Director to Strengthen Board Oversight
Positive
Sep 18, 2026
On September 17, 2026, Pentair plc appointed Louis V. Pinkham to its Board of Directors and named him to the Audit and Finance Committee, with the board determining that he meets New York Stock Exchange independence standards. Pinkham will receive...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Pentair Secures New Term Loans for Taco Acquisition
Positive
Sep 2, 2026
On July 27, 2026, Pentair plc agreed to acquire Taco Group Holdings for a purchase price of $1.425 billion, marking a significant expansion move in its building systems and fluid management portfolio. In preparation for this transaction, the compa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.