July 04, 2025 a 11:31 am
PNR: Dividend Analysis - Pentair plc
Pentair plc has maintained a stable dividend policy with a long history of consistent payouts. Its current dividend yield is moderate, reflecting both stability and potential for capital appreciation. The company’s ability to sustain dividends even amidst market volatility demonstrates a robust financial footing.
📊 Overview
Pentair operates in the diversified industrials sector, and its dividend profile reflects its stability in the industry. A detailed analysis of the dividend yield, history, and last adjustments reveals its strong commitment to returning value to shareholders.
| Aspect | Detail |
|---|---|
| Sector | Diversified Industrials |
| Dividend yield | 0.92 % |
| Current dividend per share | 0.91 USD |
| Dividend history | 37 years |
| Last cut or suspension | None |
🗣️ Dividend History
The dividend history is crucial for assessing a company's commitment to reward its investors. Pentair's 37-year history of uninterrupted dividends exemplifies its strong operational cash flows and strategic financial management.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.75 |
| 2024 | 0.92 |
| 2023 | 0.88 |
| 2022 | 0.84 |
| 2021 | 0.8 |
📈 Dividend Growth
Tracking dividend growth over time gives insight into future expectations for income streams. Pentair's recent growth trends indicate a steady increase, which is promising for long-term investors.
| Time | Growth |
|---|---|
| 3 years | 4.77 % |
| 5 years | 5.02 % |
The average dividend growth is 5.02 % over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Understanding payout ratios helps evaluate if dividends are sustainable. Pentair's conservative payout ratios, both EPS-based and cash-flow-based, suggest a strong ability to continue payouts without compromising financial health.
| Key figure | Ratio |
|---|---|
| EPS-based | 23.21 % |
| Free cash flow-based | 19.63 % |
With EPS-based payout ratio at 23.21 % and FCF-based at 19.63 %, Pentair is well-positioned to maintain its dividend policy.
✅ Cashflow & Capital Efficiency
Analyzing these metrics provides an understanding of how efficiently a company uses its capital and cash flow. Pentair displays a solid blend of cash flow stability and efficient capital management essential for sustaining dividend payments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.11 % | 4.52 % | 3.75 % |
| Earnings Yield | 3.72 % | 5.19 % | 6.49 % |
| CAPEX to Operating Cash Flow | 9.70 % | 12.27 % | 23.45 % |
| Stock-based Compensation to Revenue | 0.97 % | 0.71 % | 0.60 % |
| Free Cash Flow / Operating Cash Flow Ratio | 90.30 % | 87.72 % | 76.55 % |
Pentair exhibits stable cash flows and efficient capital management, crucial for a sustainable dividend policy.
⚠️ Balance Sheet & Leverage Analysis
Balance sheet metrics and leverage ratios are key to assessing financial stability and risk. The figures suggest that Pentair maintains a balanced approach to leveraging its assets, ensuring long-term financial stability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 46.25 % | 65.08 % | 85.65 % |
| Debt-to-Assets | 25.56 % | 31.90 % | 36.40 % |
| Debt-to-Capital | 31.63 % | 39.42 % | 46.42 % |
| Net Debt to EBITDA | 1.66x | 2.26x | 2.69x |
| Current Ratio | 1.60 | 1.65 | 1.47 |
| Quick Ratio | 0.92 | 0.94 | 0.72 |
| Financial Leverage | 1.81x | 2.04x | 2.38x |
The ratios reveal a prudent use of leverage and robust liquidity measures, supporting Pentair’s ongoing dividend commitments.
📊 Fundamental Strength & Profitability
Key profitability and efficiency indicators demonstrate Pentair's capacity to maximize shareholder returns. Pentair's consistent ROE and healthy margins reflect its operational effectiveness.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 17.55 % | 19.36 % | 17.76 % |
| Return on Assets | 9.70 % | 9.49 % | 7.46 % |
| Margins: Net | 15.32 % | 15.17 % | 11.67 % |
| EBIT | 19.78 % | 17.96 % | 17.56 % |
| EBITDA | 22.58 % | 20.76 % | 20.15 % |
| Gross | 39.16 % | 37.01 % | 33.11 % |
| Research & Development to Revenue | 2.29 % | 2.43 % | 2.24 % |
Pentair's solid return metrics and strong margins emphasize its capacity to deliver robust profits, ensuring sustainable dividends.
Price Development
🎯 Dividend Scoring System
| Category | Score | Visualization |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
Rating
Pentair plc's dividend profile and financial fundamentals indicate it is a strong dividend-paying company with a well-rounded financial structure. Its stable payout history, moderate growth potential, and sound management forecast a continuing trend of reliable shareholder returns. Recommended with confidence for income-focused investors seeking a balance of stability and moderate growth potential.