Company Reports

Narrow-moat-rated Pentair posted solid first-quarter results, as its adjusted earnings per share of $0.94 came in above management’s guidance range of $0.88-$0.91. Pentair reiterated its 2024 outlook and continues to expect full-year reported sales growth of 2%-3% and adjusted EPS of $4.15-$4.25. We’ve slightly raised our fair value estimate to $78 per share from $77 due to the time value of money, and we see shares as fairly valued at current levels.

Pentair is a pure-play water company manufacturing a wide range of sustainable water solutions, including energy-efficient swimming pool pumps, filtration solutions, and commercial and industrial pumps. Pentair’s business is organized into three segments: pool, water solutions, and flow. The company benefits from a large installed base of equipment, and over 75% of its products are replacement.

We've raised our fair value estimate for narrow-moat-rated Pentair to $77 from $72 after reviewing the firm's 2024 investor day presentation. Our fair value adjustment reflects our slightly more optimistic midcycle operating margin assumptions.

Pentair is a pure-play water company manufacturing a wide range of sustainable water solutions, including energy-efficient swimming pool pumps, filtration solutions, and commercial and industrial pumps. Pentair’s business is organized into three segments: pool, water solutions, and flow. The company benefits from a large installed base of equipment, and over 75% of its products are replacement.

Narrow-moat-rated Pentair finished the year with a solid fourth quarter, as its full-year revenue of $4,105 million and adjusted EPS of $3.75 both came in above our estimates of $4,071 million and $3.73, respectively. This outperformance was driven primarily by pool sales beating our expectations, as volumes increased sequentially from the third quarter. While nothing in the earnings release materially alters our long-term outlook, we’ve bumped our fair value estimate up to $72 from $70, mostly due to the time value of money.

Pentair is a pure-play water company manufacturing a wide range of sustainable water solutions, including energy-efficient swimming pool pumps, filtration solutions, and commercial and industrial pumps. Pentair’s business is organized into three segments: pool, water solutions, and flow. The company benefits from a large installed base of equipment, and over 75% of its products are replacement.

We are maintaining our $70 fair value estimate for narrow-moat-rated Pentair after the company reported third-quarter results, as our slightly more muted near-term revenue growth projections were offset by the time value of money. Despite a 7% year-over-year core sales decline in the third quarter, we were encouraged by Pentair’s 140-basis-point year-over-year adjusted operating margin expansion, from 19.6% to 21%, driven by pricing, productivity, and margin accretion from the Manitowoc acquisition.

Pentair is a pure-play water company manufacturing a wide range of sustainable water solutions, including energy-efficient swimming pool pumps, filtration solutions, and commercial and industrial pumps. Pentair’s business is organized into three segments: pool, water solutions, and industrial and flow technologies. The company benefits from a large installed base of equipment, and over 75% of its products are replacement.

Following narrow-moat-rated Pentair’s second-quarter earnings release, we’ve raised our fair value estimate to $70 from $64, driven by our more optimistic midcycle operating margin assumptions. Despite headwinds in the pool segment as well as a challenging macroeconomic environment, Pentair delivered a 230-basis-point year-over-year operating margin expansion in the second quarter, from 19.3% to 21.6%, thanks to higher pricing, productivity, and margin accretion from the Manitowoc acquisition. We are encouraged by Pentair’s margin expansion in recent quarters as the firm’s transformation initiatives have started to bear fruit, with margins improving across all three segments.

Pentair is a pure-play water company manufacturing a wide range of sustainable water solutions, including energy-efficient swimming pool pumps, filtration solutions, and commercial and industrial pumps. Pentair’s business is organized into three segments: pool, water solutions, and industrial and flow technologies. The company benefits from a large installed base of equipment, and over 75% of its products are replacement.

Pentair is a pure-play water company manufacturing a wide range of sustainable water solutions, including energy-efficient swimming pool pumps, filtration solutions, and commercial and industrial pumps. Pentair’s business is organized into three segments: pool, water solutions, and industrial and flow technologies. The company benefits from a large installed base of equipment, and over 75% of its products are replacement.

Narrow-moat-rated Pentair posted solid first-quarter results, featuring a 7% year-over-year increase in adjusted EPS, from $0.85 to $0.91. We've raised our fair value estimate to $64 from $62, driven by our more optimistic operating margin assumptions as well as time value of money.

Pentair is a pure-play water company manufacturing a wide range of sustainable water solutions, including energy-efficient swimming pool pumps, filtration solutions, and commercial and industrial pumps. Pentair’s business is organized into two segments: consumer solutions and industrial and flow technologies.

Narrow-moat-rated Pentair ended 2022 with a strong fourth quarter, as its adjusted EPS of $0.82 beat our estimate by $0.07. After rolling our model forward one year, we’ve increased our fair value estimate for Pentair to $62 from $60, which reflects our more optimistic long-term operating margin expectations, partially offset by our slightly more muted near-term revenue growth projections in the pool business.

Narrow-moat Pentair delivered solid third-quarter results, featuring an 11% year-over-year increase in adjusted EPS to $0.99 from $0.89. After reviewing our forecast, we’ve lowered our fair value estimate to $60 per share from $65, which reflects our more muted revenue growth estimates for the pool business.

Pentair is a pure-play water company manufacturing a wide range of sustainable water solutions, including energy-efficient swimming pool pumps, filtration solutions, and commercial and industrial pumps. Pentair’s business is organized into two segments: consumer solutions and industrial and flow technologies.

Narrow-moat-rated Pentair posted strong second-quarter results, highlighted by a 21% year-over-year increase in adjusted EPS from $0.84 to $1.02. While the pool business is showing no signs of slowing down, with second-quarter sales up 20% year over year, we’ve trimmed our long-term revenue projections estimates given increasingly challenging comparisons to pre-COVID-19 levels. That said, although we’ve reduced our fair value estimate to $65 from $68, we continue to see Pentair as modestly undervalued, with the stock currently trading in 4-star territory.

Pentair is a pure-play water company manufacturing a wide range of sustainable water solutions, including energy-efficient swimming pool pumps, filtration solutions, and commercial and industrial pumps. Pentair’s business is organized into two segments: consumer solutions and industrial and flow technologies.

Pentair is a pure-play water company manufacturing a wide range of sustainable water solutions, including energy-efficient swimming pool pumps, filtration solutions, and commercial and industrial pumps. Pentair’s business is organized into two segments: consumer solutions and industrial and flow technologies.

Narrow-moat-rated Pentair delivered solid first-quarter results, with core sales up 12% year over year. Management reiterated its full-year 2022 adjusted EPS guidance range of $3.70 to $3.80, though on higher sales growth of 9% to 11% (up from 6% to 9% previously), which reflects the firm’s strong first-quarter results as well as anticipated further price increases to offset elevated inflation. We’ve lowered our fair value estimate for Pentair to $68 from $70, mostly due to slightly more conservative long-term revenue growth and operating margin assumptions, partially offset by time value of money. We continue to view Pentair as modestly undervalued, with shares currently trading in 4-star territory.