NYSEIndustrialsIndustrial - MachinerySnapshot 2026-08-31
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Create your account →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 growth. However, recent performance has been neutral, and management faces challenges in executing their growth strategy.
The market currently prices PNR as cheap compared to its peers, with a notable expectations gap. This suggests that investors may be anticipating some level of underperformance or cautious growth moving forward.
Fundamentally, PNR's recent financial performance has been neutral, with modest revenue growth and mixed results in operating income. The company has a low probability of missing earnings expectations in the near term, but past performance raises caution.
The thesis hinges on the performance of sector bellwethers like GEV, PH, and TT, which could influence PNR's momentum. Additionally, management's ability to drive growth and maintain margins will be critical in shaping future outcomes.
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 aligns with its growth strategy and expands market presence. However, there was a recent earnings miss and a guidance cut, which pose risks to growth objectives. Increased competition from distressed peers may also impact market share.
as of 2026-08-31
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 outlook will depend on both external sector conditions and internal execution. Not investment advice.
