PNR Stock Analysis — Pentair
Sector: Industrials
AI Verdict
Pentair trades at 13.4x next year's earnings with nearly 30% growth expected—cheap for an industrial, but the market is skeptical after last year's 32.70% drop, so execution on that growth is critical.
Competitive Moat
Pentair specializes in water treatment and filtration systems for residential, commercial, and industrial customers, with a defensible position built on proprietary filtration technologies and a broad installed base that creates recurring aftermarket sales. Their scale and established distribution channels make it difficult for smaller competitors to match their reach or service reliability.
Summary
Pentair's forward P/E of 13.4x and nearly 30% expected EPS growth make it a rare value play in industrials after a sharp drawdown.
Where It Stands
With a 1-year return of -32.70%, an RSI of 60.2 (neutral), and a forward P/E of 13.4x versus the industrials median of 20x, Pentair trades at a discount despite a growth rebound forecast.
Key Metrics
- RSI: 60.2 — Near Overbought
- Trailing P/E: 17.4x
- Forward P/E: 13.4x
- PEG Ratio: 0.60
- Earnings Growth: +0.3%
- Revenue Growth: -0.0%
- Market Cap: $11.0B
- Dividend Yield: 0.02%
- 1-Year Return: -32.70%
- 52-Week High: $113.95
- 52-Week Low: $57.60
Analyst Consensus
11 Buy · 9 Hold · 3 Sell (23 analysts)
Bull Case
Analysts expect EPS to rise 29.8% next year while the stock trades at just 13.4x forward earnings, making it cheap for the growth on offer if their filtration moat holds.
Bear Case
If the P/E reverts to the sector median of 20x only after growth materializes, the current 17.4x trailing P/E leaves little room for disappointment and the -32.70% return shows sentiment is fragile.
Catalyst to Watch
Watch for quarterly earnings beats or misses versus the 29.8% EPS growth target to confirm whether the turnaround is real.