Pentair (PNR)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
$60.21+0.32%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
Broken: Primary pillar broken — Operating income growth through productivity gains: Operating income $166.7M vs $210M target.
Pentair grows sales about 4.5% a year. Profit margins improve with productivity gains. The company returns cash by buying back $200 million in shares. Demand for water treatment and cooling supports steady growth.
Pentair faces a soft guidance outlook and recent share price weakness. CEO changes and capital obligations raise concerns. Revenue growth is slow and may not meet targets.
The price is about 20% below our fair value near $94. Analysts expect about 4.5% revenue growth. Our fair value is 14% below the Street median, reflecting cautious optimism.
Breaks if: Share repurchases fall below $100 million next quarter
Breaks if: Operating income falls below $200M next quarter
YoY revenue growth falls below 3% next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on long-term sales and earnings growth. The current thesis state indicates that while management is committed to growth, execution has been inconsistent, leading to a neutral outlook.
The valuation suggests that PNR is considered cheap compared to its peers, with the market pricing in some fragility due to weak execution quality. The expectations gap indicates that investors are not anticipating significant improvements in performance in the near term.
Fundamentals may remain stable in the near term, as recent financial performance has been neutral and management's priorities show mixed results. However, the company's history of missing earnings guidance raises some caution.
The thesis hinges on the performance of sector bellwethers like GEV, PH, and TT, which could influence PNR's momentum. Additionally, any significant changes in guidance or execution quality could impact investor confidence.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The company reaffirmed its outlook and announced a significant acquisition. This acquisition aims to drive long-term sales and earnings growth. However, there are concerns due to a recent earnings miss and guidance cut. This guidance cut poses risks to growth objectives.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Over the next 1 to 3 years, PNR's performance will depend on its ability to navigate sector challenges and improve execution. Not investment advice.