Interested In Pentair plc (PNR)? Here’s What Its Recent Track-Record Looks Like
Measuring Pentair plc’s (NYSE:PNR) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess PNR’s recent performance announced on 30 September 2017 and compare these figures to its historical trend and industry movements. See our latest analysis for PNR
How Well Did PNR Perform?
I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend enables me to analyze different stocks on a similar basis, using new information. For Pentair, the latest earnings is $386M, which, against the previous year’s figure, has plunged by -13.52%. Since these values may be fairly short-term thinking, I have determined an annualized five-year figure for Pentair’s net income, which stands at $293M. This means that despite the fact that earnings growth was negative against the prior year, over the longer term, Pentair’s profits have been rising on average.
How has it been able to do this? Let’s see if it is merely due to an industry uplift, or if Pentair has seen some company-specific growth. Over the last couple of years, Pentair grew its bottom line faster than revenue by efficiently controlling its costs. This has led to a margin expansion and profitability over time. Inspecting growth from a sector-level, the US machinery industry has been growing, albeit, at a unexciting single-digit rate of 7.47% in the prior year, and 5.20% over the past five. This suggests that any tailwind the industry is deriving benefit from, Pentair has not been able to leverage it as much as its average peer.
What does this mean?
Pentair’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies are profitable, but have volatile earnings, can have many factors impacting its business. I suggest you continue to research Pentair to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for PNR’s future growth? Take a look at our free research report of analyst consensus for PNR’s outlook.
2. Financial Health: Is PNR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
