Pentair plc (PNR) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Pentair plc

Updated on October 31, 2026 · accounts published on October 27, 2026

A highly profitable industrial with record margins and a solid balance sheet

Pentair trades at a P/E of 17.6 over the last 12 months, 32 % below its sector median of 25.8 and 13 % below its ten-year median.

• Is Pentair expensive or cheap? Its P/E of 17.6 is 32 % below the sector median and 13 % below its own ten-year median of 20.2.
• How is the business doing? Operating margin reached 21 % in fiscal 2025, the highest in 12 years and above its 16 % average since 2014.
• How strong is the balance sheet? Net debt is 1.8× EBITDA in fiscal 2025, and the dividend has risen six years in a row with a 25 % payout.
• What to expect from the next earnings? Pentair reports on February 2, 2027. Analysts expect EPS of $1.17, and it has beaten estimates in each of the last 8 quarters.
• Does Pentair turn its margin into cash, and what cycle multiple does it trade at? Free cash flow was 114 % of net income in fiscal 2025, and EV/EBITDA of 13.6× is below its seven-year average of 17.6×.

Is Pentair expensive or cheap?

Over the last 12 months Pentair trades at a P/E of 17.6, against a median of 25.8 across 297 companies in its sector. The gap with its own history is smaller. Its ten-year median is 20.2, within a decade range of 10.0 to 36.9, and the stock has traded at a lower P/E only 39 % of the time. A free cash flow yield of 5.8 % supports that reading. The discount follows a 38 % fall over the last 12 months, which leaves the stock 39 % below its 52-week high of $108.69. The share price fell while EPS kept growing.

How is the business doing?

Growth is modest. Over the last 12 months revenue rose 2.3 % and EPS 5.9 %. Profitability is the strong part. The operating margin is 19 % over the last 12 months, above the 2014-2025 average of 16 %, after a record 21 % in fiscal 2025. ROIC of 11.1 % over the last 12 months beats the sector median of 9.1 % by 2.0 points and has stayed above 10 % in 7 of the last 10 fiscal years. It still falls short of the 15 % that marks a healthy industrial. A Piotroski score of 8 out of 9 points to broadly improving fundamentals.

How strong is the balance sheet?

Pentair carries little leverage for an industrial. Net debt of 1.8× EBITDA in fiscal 2025 sits well under the 3.0× the sector treats as healthy, and debt to equity is 0.42 over the last 12 months. Net debt comes to $10.56 per share, about 16 % of the current price. An Altman Z of 5.1 puts it in the safe zone, far above the 2.99 cut-off, and a current ratio of 1.47 covers short-term obligations. The dividend yields 1.6 % and has grown for six consecutive fiscal years. In fiscal 2025 it took only 25 % of earnings, which leaves ample headroom.

What to expect from the next earnings?

On October 27, 2026 Pentair reported EPS of $1.18 against $1.07 expected, a 10 % beat, and it has topped estimates in 8 of the last 8 quarters. For the next quarter analysts expect $1.17, close to the latest figure. Estimates are edging up. The 2026 EPS consensus rose 0.8 % over the last 30 days to $4.69, and the 2026 revenue consensus rose 2.3 %. Analysts are lukewarm, with 15 of 43 at buy, 22 at hold and 6 at sell. After eight beats in a row, the next report will be judged against that record.

Does Pentair turn its margin into cash, and what cycle multiple does it trade at?

Industrials are semi-cyclical, so one good year can flatter earnings. That is why the sector is judged on operating margin, on cash conversion and on multiples set against the cycle, rather than on a single year's P/E. Pentair passes most of these tests. Free cash flow equalled 114 % of net income in fiscal 2025, above the 85 % healthy mark, so its profits turn into cash. Its EV/EBITDA of 13.6× over the last 12 months is below 90 % of its seven-year average of 17.6×. The point to watch is capex. At 1.6 % of revenue in fiscal 2025 it sits under the sector's 4 % to 8 % range, which also lifts cash conversion.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.