Pentair plc operates as a diversified industrial manufacturing company in the United States, Europe, and internationally. The company operates through Valves & Controls, Technical Solutions, Flow & Filtration Solutions, and Water Quality Systems segments. The company was founded in 1966 and is based in Manchester, the United Kingdom.
PNR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for PENTAIR plc. To summarize, we found that PENTAIR plc ranked in the 19th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for PENTAIR plc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.41 years, is -0.11% -- higher than only 13.63% of stocks in our DCF forecasting set.
PNR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 34.17% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), PENTAIR plc has a reliance on debt greater than just 21.4% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as PNR, try BKNG, JCI, MWA, TRS, and ABB.
Pentair (PNR) re-affirms FY20 GAAP EPS from continuing operations of $1.70-$1.90 and Non-GAAP EPS of $2.00-$2.20 vs. $2.19 consensus.FY20 sales of ~$2.8B vs. consensus of $2.81B and FCF of greater than 100 percent of net income....