PNR

Pentair PLC

Industrial/Transportation, Event Driven/Special Sit


Presented:03/12/2018
Price:$47.81
Cap:$8.53B
Current Price:$98.49
Cap:$16.30B

Presented

Date03/12/2018
Price$47.81
Market Cap$8.53B
Ent Value$9.98B
P/E Ratio12.09x
Book Value$18.76
Div Yield1.97%
Shares O/S178.39M
Ave Daily Vol1,561,222
Short IntN/A

Current

Price$98.49
Market Cap$16.30B
Pentair Plc is a diversified industrial manufacturing company, which engages in the business of industrial manufacturing. It specializes in equipment protection to water, fluid, and in thermal management. It operates through the Water and Electrical segments. The Water segment designs, manufactures, markets, and services water system products and solutions for the filtration, separation, flow, and water management challenges. The Electrical segment provides heat management solutions designed to provide thermal protection to temperature sensitive fluid applications; and engineered electrical and fastening products. 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 Manchester, the United Kingdom.

Please note, on 5/1/2018 Pentair plc (PNR) traded regular way wihtout nVent (NVT). As well PNR split on 5/1/2018 at a ratio of 1489/1000. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $71.19.

Publicly traded companies mentioned herein: Pentair PLC (PNR)

Highlights

The presenter said he is long Pentair (PNR) ahead of the spin-off of PNR Electrical, stating that “The setup is as good as it has been at any point in the past five years”. His base case sum-of-the-parts model using “reasonable” multiples for Water and Electrical suggests there is ~$22 of upside to be had once the spin-off is completed ($55/share for Water plus $38/share for Electrical = $93 of value). In a more bullish, yet still practical scenario, he can see some combination of higher leverage, increased capital deployment, and/ or faster organic growth driving the total value up to $111.

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Idea Discussion

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