PNR

Pentair PLC

Industrial/Transportation


Presented:01/14/2020
Price:$45.58
Cap:$7.66B
Current Price:$98.49
Cap:$16.30B

Presented

Date01/14/2020
Price$45.58
Market Cap$7.66B
Ent Value$7.46B
P/E Ratio22.24x
Book Value$11.12
Div Yield1.58%
Shares O/S168.09M
Ave Daily Vol970,555
Short Int2.49%

Current

Price$98.49
Market Cap$16.30B
Pentair Plc engages in the provision of water solutions for residential, commercial, industrial, infrastructure, and agriculture applications. Its portfolio of solutions enables people, businesses, and industries to access clean, safe water, reduce water consumption, and recover and reuse it. It operates through the following business segments: Aquatic Systems, Filtration Solutions, and Flow Technologies. The Aquatic Systems segment manufactures and sells residential and commercial pool equipment and accessories including pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment, and pool accessories. The Filtration Solutions segment distributes water and fluid treatment products and systems, including pressure tanks and vessels, control valves, activated carbon products, conventional filtration products, point-of-entry and point-of-use systems, gas recovery solutions, embrane bioreactors, wastewater reuse systems, and advanced membrane filtration and separation systems. The Flow Technologies segment offers products ranging from light duty diaphragm pumps to high-flow turbine pumps and solid handling pumps. The company was founded by Murray J. Harpole, Vern Stone, Vincent Follmer, Leroy Nelson, and Gary Ostrand on August 31, 1966 and is headquartered in London, the United Kingdom.

Publicly traded companies mentioned herein: Honeywell International Inc (HON), Pentair PLC (PNR), Pool Corp (POOL), Xylem Inc (XYL)

Highlights

The presenter is long shares of Pentair (PNR), the water treatment solutions company. He believes it is attractive given easy comps in its aquatics business, a favorable capital allocation set up, and potential for further cost savings. Shares are trading at ~$45, in line with its multi-industrial peers at 19x and 17x consensus 2020 and 2021 earnings, respectively. The presenter believes this is an attractive entry point and sees the stock appreciating to ~$60 per share in his base case with significant potential additional upside.

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Idea Discussion

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