📊 PNR Key Takeaways
Is PENTAIR plc (PNR) a Good Investment?
While Pentair demonstrates solid profitability margins (20.3% operating margin, 16.6% net margin), the company faces critical operational challenges including negative operating cash flow of -67.4M despite positive net income, suggesting severe quality-of-earnings concerns. The anomalous 6117% revenue growth paired with flat net income growth indicates acquisition-driven expansion without corresponding returns, evidenced by deeply depressed ROE (4.5%) and ROA (2.4%).
Pentair shows strong core fundamentals with healthy 40.5% gross margin, 20.5% operating margin, and robust free cash flow generation equal to 17.9% of revenue. Balance sheet risk appears manageable given modest 0.42x debt-to-equity, 28.5x interest coverage, and solid liquidity, though the reported 6117.3% revenue growth versus flat net income suggests a likely reporting anomaly or acquisition/distortion that reduces growth quality confidence.
PENTAIR plc Key Strengths (PNR)
- Strong gross margin of 41.8% and operating margin of 20.3% demonstrates pricing power and operational efficiency
- Manageable leverage with debt-to-equity ratio of 0.51x and interest coverage of 7.0x
- Adequate liquidity with current ratio of 1.88x and quick ratio of 1.19x
- High profitability with strong gross, operating, and net margins
- Robust cash generation with $746.0M in free cash flow and low capital intensity
- Conservative leverage profile supported by strong interest coverage and positive liquidity
PNR Stock Risks: PENTAIR plc Investment Risks
- Negative operating cash flow of -67.4M despite 172.4M net income indicates critical quality-of-earnings issues and working capital deterioration
- Free cash flow of -85.9M with -8.3% FCF margin shows the company is burning cash despite reported profitability—unsustainable without balance sheet deterioration
- Abnormal 6117% YoY revenue growth coupled with 0% net income growth suggests value-destructive acquisition or major cost structure problems
- Severely depressed returns: ROE of 4.5% and ROA of 2.4% indicate poor capital efficiency despite decent margins
- Critically low cash position of 67.7M relative to 1.9B long-term debt leaves minimal financial flexibility
- Reported revenue growth is likely distorted, making underlying growth quality harder to assess
- Net income was flat year over year despite massive reported revenue growth, which may indicate mix, margin, or data-quality issues
- Cash balance is relatively modest versus total debt, increasing reliance on continued operating cash flow
Key Metrics to Watch
- Operating cash flow trend—must return to positive to validate earnings quality
- Free cash flow sustainability and working capital changes by segment
- Return on equity and return on assets recovery trajectory
- Organic revenue growth rate excluding acquisition contribution
- Cash balance adequacy relative to debt obligations and capex requirements
- Organic revenue growth and segment-level margin performance
- Free cash flow conversion and net debt trends
PENTAIR plc (PNR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
PENTAIR plc presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
PNR Profit Margin, ROE & Profitability Analysis
PNR vs Materials Sector: How PENTAIR plc Compares
How PENTAIR plc compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is PENTAIR plc Stock Overvalued? PNR Valuation Analysis 2026
Based on fundamental analysis, PENTAIR plc has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
PENTAIR plc Balance Sheet: PNR Debt, Cash & Liquidity
PNR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: PENTAIR plc's revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.75 reflects profitable operations.
PNR Revenue Growth, EPS Growth & YoY Performance
PNR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.0B | $154.9M | $0.93 |
| Q3 2025 | $993.4M | $139.6M | $0.84 |
| Q2 2025 | $1.1B | $148.5M | $0.90 |
| Q1 2025 | $1.0B | $133.3M | $0.80 |
| Q3 2024 | $993.4M | $132.1M | $0.79 |
| Q2 2024 | $1.1B | $152.9M | $0.92 |
| Q1 2024 | $1.0B | $129.7M | $0.79 |
| Q3 2023 | $1.0B | $115.4M | $0.70 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
PENTAIR plc Dividends, Buybacks & Capital Allocation
PNR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for PENTAIR plc (CIK: 0000077360)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PNR
What is the AI rating for PNR?
PENTAIR plc (PNR) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PNR's key strengths?
Claude: Strong gross margin of 41.8% and operating margin of 20.3% demonstrates pricing power and operational efficiency. Manageable leverage with debt-to-equity ratio of 0.51x and interest coverage of 7.0x. ChatGPT: High profitability with strong gross, operating, and net margins. Robust cash generation with $746.0M in free cash flow and low capital intensity.
What are the risks of investing in PNR?
Claude: Negative operating cash flow of -67.4M despite 172.4M net income indicates critical quality-of-earnings issues and working capital deterioration. Free cash flow of -85.9M with -8.3% FCF margin shows the company is burning cash despite reported profitability—unsustainable without balance sheet deterioration. ChatGPT: Reported revenue growth is likely distorted, making underlying growth quality harder to assess. Net income was flat year over year despite massive reported revenue growth, which may indicate mix, margin, or data-quality issues.
What is PNR's revenue and growth?
PENTAIR plc reported revenue of $1.0B.
Does PNR pay dividends?
PENTAIR plc pays dividends, with $44.1M distributed to shareholders in the trailing twelve months.
Where can I find PNR SEC filings?
Official SEC filings for PENTAIR plc (CIK: 0000077360) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PNR's EPS?
PENTAIR plc has a diluted EPS of $1.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PNR's fundamental grade?
Based on our AI fundamental analysis in June 2026, PENTAIR plc has a B grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PNR stock overvalued or undervalued?
Valuation metrics for PNR: ROE of 4.5% (sector avg: 14%), net margin of 16.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is PNR's AI grade for 2026?
Our dual AI analysis gives PENTAIR plc a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PNR's free cash flow?
PENTAIR plc's operating cash flow is $-67.4M, with capital expenditures of $18.5M. FCF margin is -8.3%.
How does PNR compare to other Materials stocks?
Vs Materials sector averages: Net margin 16.6% (avg: 10%), ROE 4.5% (avg: 14%), current ratio 1.88 (avg: 1.6).