PNR
Pentair plc$97.57
Unclear
Target $93.10
Report: Mar 08, 2026Industrials • Industrial - Machinery • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$97.57-4.6%
Rec: UnclearConviction: Medium
Entry Target
$71.62
(27% below current)
Fair Value
$93.10
(5% below current)
Stop Loss
$50.15
(49% below current)
Position Size
Starter
Time Horizon
Long-Term (3+ Years)
Key Metrics
Live Snapshot
Market Data
52 Week High$113.95
52 Week Low$74.25
Avg. 3 Month Volume1.78M
Efficiency
LTM Gross Margin40.5%
LTM EBITDA Margin22.7%
LTM EBIT Margin19.9%
LTM Operating Margin20.5%
LTM ROA9.7%
LTM ROE17.5%
LTM ROIC30.1%
LTM ROCE14.5%
Capital Structure
Market Cap (MM)$14.2B
Enterprise Value (MM)$15.8B
Shares Outstanding163.20M
Total Debt (MM)$1.64B
Cash & Equivalents (MM)$101.60M
LTM Net Debt (MM)$1.54B
LTM Net Debt/EBITDA1.6x
Growth
TTM Rev. Growth2.3%
Last 3-Yr Rev. CAGR0.4%
Last 3-Yr EBITDA CAGR9.8%
Last 3-Yr EPS CAGR11.0%
Valuation
Street Target Price$118.56
LTM EV/Revenue3.8x
LTM EV/Gross Profit9.3x
LTM EV/EBIT19.0x
LTM EV/EBITDA16.6x
LTM P/E21.7x
LTM EV/FCF21.1x
LTM P/FCF19.0x
LTM P/TB6.3x
LTM P/B3.7x
Dividend Yield1.2%
Payout Ratio25.6%
Executive SummarySituation: Current price is $97.57 versus fair value $93.1 (-4.6% expected return), and valuation confidence is stable. Debate: Bull case depends on Realization of 70M USD in net transformation savings in 2026. Bear case centers on Moat erosion in the Pool segment. Conclusion: Recommendation is Unclear; maintain no position until reliability and catalyst evidence improve.
Bull Case
Transformation savings of 70M USD net in 2026 will drive ROS toward the 26% target; strong pricing power (1-2% company-wide) continues to outpace inflation; record free cash flow of 748M USD supports the 50-year dividend increase streak.
Bear Case
Organic revenue growth is stagnant at 2.3% with flat Water Solutions sales; negative incremental ROIC of -14.5% suggests recent M&A has not yet created value; significant leadership turnover (CFO and CTO) creates execution risk during a major restructuring.
Key Catalysts
Mid-Term (6-18 months)Impact: High
Realization of 70M USD in net transformation savings in 2026. This would validate management's margin expansion narrative and support the 26...
Mid-Term (6-18 months)Impact: Moderate
Successful integration of the Water Quality Management business. Synergies from combining residential Flow and Water Solutions could provide...
Long-Term (18+ months)Impact: Moderate
Pentair is at a critical juncture following a 10% post-earnings sell-off and a major leadership transition. The next two quarters will be de...
Primary Risks
Concern: Medium
Moat erosion in the Pool segment. If competitors introduce lower-cost smart pumps that bypass Pentair's distribution network, the company's...
Concern: High
Execution risk from leadership turnover. The simultaneous departure of the CFO and CTO during a major restructuring could lead to operationa...
Concern: Medium
The stewardship verdict is mixed due to the ongoing leadership transition. We outline the following Governance Outcome Tree: 1. Status Quo:...
Recent Activity
2026-02-03SEC Filing (8-K)
-10.16%Pentair reported strong fourth quarter and full year 2025 results with full year sales of $4.2 billion and adjusted EPS of $4.92, up 14% year-over-year.
2025-04-22SEC Filing (8-K)
+9.22%Pentair reported strong first quarter 2025 results with sales of $1.0 billion and adjusted EPS of $1.11, up 18% year-over-year.
2024-07-23SEC Filing (8-K)
+9.00%Pentair reported strong second quarter 2024 results with sales of $1.1 billion and adjusted EPS of $1.22, up 18% year-over-year.
2024-06-25Analyst Target
-7.11%Firm: RBC Capital Analyst: Deane Dray Price Target: $99.00 Price When Posted: $80.00 Implied Upside: +23.8%
2023-04-27SEC Filing (8-K)
+9.75%Pentair reported strong first quarter 2023 results with sales of $1.0 billion and adjusted EPS of $0.91, up 7% year-over-year.
Valuation Table
9.8/10Decision Grade