October 22, 2025 a 07:46 am
PNR: Dividend Analysis - Pentair plc
Pentair plc has a robust dividend profile, characterized by consistent payments over the years and a stable growth trajectory. Despite fluctuations in the market, its commitment to shareholder returns is evident through its minimal payout ratios and prudent capital management.
📊 Overview
Pentair operates within the industrial sector, maintaining a modest dividend yield and reliable dividend per share. With a history of 37 uninterrupted years of dividend payments, it last saw a cut in 2019, showcasing resilience in returning value to shareholders.
| Metric | Value |
|---|---|
| Sector | Industrials |
| Dividend yield | 0.92 % |
| Current dividend per share | 0.91 USD |
| Dividend history | 37 years |
| Last cut or suspension | 2019 |
📈 Dividend History
A strong dividend history with long-term payouts indicates financial stability and commitment to rewarding shareholders. Understanding past trends in dividend payouts can help forecast future distributions.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.00 |
| 2024 | 0.92 |
| 2023 | 0.88 |
| 2022 | 0.84 |
| 2021 | 0.80 |
📉 Dividend Growth
Evaluating dividend growth is essential in understanding a company's financial robustness and its ability to enhance shareholder value over time. This growth highlights Pentair's ability to increase dividends steadily over the years.
| Time | Growth |
|---|---|
| 3 years | 4.77 % |
| 5 years | 5.02 % |
The average dividend growth is 5.02% over 5 years, showing moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are critical metrics for assessing dividend sustainability. A balanced ratio indicates strategic alignment between earnings retention and shareholder distribution.
| Key figure | Ratio |
|---|---|
| EPS-based | 22.82 % |
| Free cash flow-based | 19.09 % |
Pentair's EPS payout ratio of 22.82% and FCF ratio of 19.09% are indicative of a sound ability to maintain dividends without compromising on resources for growth.
💸 Cashflow & Capital Efficiency
Cash flow and capital efficiency metrics provide insights into the financial health of a company, highlighting its ability to generate cash flow and efficiently allocate capital to ensure high returns.
| Metric | 2023 | 2022 | 2021 |
|---|---|---|---|
| Free Cash Flow Yield | 4.52 % | 3.75 % | 3.67 % |
| Earnings Yield | 5.19 % | 6.49 % | 3.66 % |
| CAPEX to Operating Cash Flow | 12.27 % | 23.45 % | 3.17 % |
| Stock-based Compensation to Revenue | 0.71 % | 0.60 % | 0.56 % |
| Free Cash Flow / Operating Cash Flow Ratio | 87.73 % | 76.55 % | 76.55 % |
The metrics present a strong cash flow and capital efficiency frame, indicating Pentair's robust operational systems and strategic financial planning.
📊 Balance Sheet & Leverage Analysis
This analysis reveals the company's leverage and financial structure, which is vital for understanding its liquidity and long-term solvency.
| Metric | 2023 | 2022 | 2021 |
|---|---|---|---|
| Debt-to-Equity | 0.65 | 0.89 | 0.71 |
| Debt-to-Assets | 0.32 | 0.37 | 0.21 |
| Debt-to-Capital | 0.39 | 0.47 | 0.45 |
| Net Debt to EBITDA | 2.26 | 3.19 | 2.76 |
| Current Ratio | 1.65 | 1.47 | 1.79 |
| Quick Ratio | 0.94 | 0.72 | 0.83 |
The indicators represent stable financial leverage and effective debt management, safeguarding Pentair's capacity for future investment opportunities.
🏦 Fundamental Strength & Profitability
Evaluating fundamental strength and profitability, with ROE and ROA metrics, underscores a firm's efficiency in resource allocation and capability to generate returns under varied market conditions.
| Metric | 2023 | 2022 | 2021 |
|---|---|---|---|
| Return on Equity | 19.36 % | 17.76 % | 15.31 % |
| Return on Assets | 9.48 % | 7.46 % | 8.62 % |
| Margins: Net | 15.17 % | 11.67 % | 13.56 % |
| Research & Development to Revenue | 2.43 % | 2.23 % | 2.99 % |
Strong profitability and efficient scaling are evident, with high ROE and competitive margins, underscoring Pentair's leadership in operational and strategic efficacy.
📉 Price Development
🗣️ Dividend Scoring System
Our thorough scoring system evaluates key aspects of dividend yield and stability, growth rate, payout safety, financial resilience, and overall dividend reliability.
| Category | Points | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 34/40
🗣️ Rating
In conclusion, Pentair plc stands as a solid option for dividend-focused investors, showcasing stability, a respectable yield, and a robust financial foundation. While the dividend yield is not exceptionally high, the company's prudent management and efficient operations make it a dependable investment choice.