Pentair plc (PNR) AI Stock Analysis
PNR AI stock analysis summary
AI ResearchPentair plc provides water solutions across consumer and industrial applications. In FY2025, revenue reached $4.18B with net income of $653.8M, though quarterly revenue declined 17.0% year-over-year in the quarter ended June 30, 2026. The stock trades at a trailing P/E of 13.8x and has dropped 50.2% over the past year.
- Market cap
- $8.53B
- Revenue (TTM)
- $4.01B
- P/E
- 13.8x fwd 10.7x
- 1Y return
- -50.2% S&P 500 16.8%
- Avg. target
- $71.47 33.7% vs last close
Bull case
- Pentair improved its gross margin from 35.0% in FY2021 to 40.5% in FY2025, while expanding operating margin to 20.5%.
- Free cash flow generation reached $746.0M in FY2025, easily supporting $225.0M in share buybacks and $164.3M in dividend payments.
- The stock trades at a forward P/E of 10.7x and PEG of 0.88, a steep discount to the median of its S&P 500 Industrials peers at 20.7x.
Bear case
- In the latest quarter ended June 30, 2026, revenue dropped 17.0% year-over-year while quarterly earnings fell 11.1%.
- Pentair shares have fallen 50.2% over the past year, significantly underperforming the S&P 500 gain of 16.8%.
- Analysts project current fiscal year EPS to fall 5.6% to $4.64 alongside subdued revenue of $4.04B.
What Pentair does
Pentair plc is a global provider of water solutions operating across two segments: Consumer Solutions and Industrial & Flow Technologies. The Consumer Solutions segment designs and manufactures equipment for residential and commercial pools, including pumps, filters, heaters, and cleaning systems, alongside water filtration and softening systems. The Industrial & Flow Technologies segment provides fluid treatment products, membrane filtration systems, pumps, and valves for food and beverage processing, wastewater treatment, agricultural irrigation, and municipal water management under brands such as Aurora, Berkeley, Sta-Rite, and X-Flow.
Growth and profitability
Pentair's revenue grew from $3.76B in FY2021 to $4.18B in FY2025, achieving a 5-year revenue CAGR of 6.7% from FY2020 to FY2025. Gross margin expanded steadily from 35.0% in FY2021 to 40.5% in FY2025, while operating margin rose from 16.9% to 20.5%. Net income increased from $553.0M in FY2021 to $653.8M in FY2025, lifting EPS from $3.35 to $4.92. However, for the trailing twelve months, revenue was $4.01B. In the latest quarter ended June 30, 2026, quarterly revenue fell 17.0% year-over-year and quarterly earnings declined 11.1%.
Balance sheet and cash flow
As of June 30, 2026, Pentair held $91.8M in cash and short-term investments against total debt of $1.76B, resulting in net debt of $1.67B. Shareholders' equity stood at $3.75B, with a debt-to-equity ratio of 0.47 and a current ratio of 1.45. In FY2025, the company generated $814.8M in operating cash flow and $746.0M in free cash flow. Capital allocation in FY2025 included $68.8M for capital expenditures, $225.0M for share buybacks, and $164.3M in dividends paid.
Valuation and performance
Pentair closed at $53.44 on October 16, 2026, with a market cap of $8.53B and an enterprise value of $10.49B. The stock trades at a trailing P/E of 13.8x and a forward P/E of 10.7x, both well below the median of its S&P 500 Industrials peers at 28.5x and 20.7x, respectively. Its EV/EBITDA of 11.3x also trades below the peer median of 17.7x, alongside a PEG of 0.88. Over the past year, the shares dropped 50.2%, underperforming the S&P 500 return of 16.8%. Over 5 years, the stock returned -20.6% compared to 83.0% for the S&P 500.
PNR dividend
Pentair pays a quarterly dividend with a forward annual payout of $1.08 per share, yielding 2.02%. The dividend is supported by a payout ratio of 22.6%. The company has paid consecutive dividends for 38 years, delivering a 5-year annualized dividend growth rate of 5.6%. Its last ex-dividend date was October 23, 2026.
What analysts expect
Wall Street sentiment includes 9 Strong Buy, 6 Hold, and 2 Sell ratings. The mean price target is $71.47, indicating 33.7% upside compared to the last close of $53.44. Analysts estimate full-year 2026 revenue of $4.04B and EPS of $4.64, representing an EPS decline of 5.6%. For FY2027, 4 analysts project revenue of $4.76B and EPS of $5.24. Pentair beat EPS estimates in each of the last 4 quarters, and its next earnings date is October 27, 2026.
Key risks and what to watch
- Net debt of $1.67B against cash of only $91.8M leaves limited cash liquidity on the balance sheet.
- The recent quarterly revenue decline of 17.0% poses downside risk to full-year revenue targets of $4.04B.
- A 5.4% short interest as a percentage of float reflects lingering market skepticism following the stock's 48.2% year-to-date decline.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this PNR AI stock analysis
This page is an AI-written research summary of Pentair plc (PNR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: PNR income statement, PNR balance sheet, PNR key metrics, PNR analyst forecast, PNR chart. See the PNR stock overview for the latest quote and news.
PNR AI stock analysis FAQ
What is Pentair's dividend yield and track record?
Pentair offers an annual forward dividend of $1.08, providing a 2.02% yield with a payout ratio of 22.6%. The company has paid dividends for 38 consecutive years with a 5-year annualized growth rate of 5.6%.
How does Pentair's valuation compare to its peers?
Pentair trades at a trailing P/E of 13.8x and EV/EBITDA of 11.3x, both lower than the median of its S&P 500 Industrials peers at 28.5x and 17.7x, respectively.
What are analyst price targets for PNR?
The mean analyst price target is $71.47, representing a 33.7% premium over the October 16, 2026 closing price of $53.44.
When does Pentair report earnings?
Pentair's next earnings date is scheduled for October 27, 2026, following 4 consecutive quarters of EPS beats.