July 09, 2026 a 03:31 pm
PNR: Dividend Analysis - Pentair plc
Pentair plc exhibits a robust dividend profile with consistent profitability and prudent financial management. The company's commitment to dividend growth and impressive history of 38 consecutive years of payouts makes it a reliable income stock. While the yield may appear modest, the low payout ratio and steady growth trajectory signify sustainability.
📊 Overview
Pentair plc, operating in the industrial goods sector, maintains a dividend yield of 1.46%. The current dividend per share is 1.00 USD, sustained over a solid 38-year history without cuts, showcasing the firm’s consistency and shareholder value emphasis.
| Factor | Details |
|---|---|
| Sector | Industrial Goods |
| Dividend yield | 1.46% |
| Current dividend per share | 1.00 USD |
| Dividend history | 38 years |
| Last cut or suspension | None |
🗣️ Dividend History
The long dividend history underlines Pentair plc's dedication to returning capital to shareholders. This track record of consistent payout even during economic turbulence highlights its resilient business model.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.81 |
| 2025 | 1.00 |
| 2024 | 0.92 |
| 2023 | 0.88 |
| 2022 | 0.84 |
📈 Dividend Growth
The growth in dividends signifies accelerating shareholder returns and positive business outlook. Pentair's average growth over three years stands at 5.98%, and over five years at 5.64%, showing moderate but steady dividend growth.
| Time | Growth |
|---|---|
| 3 years | 5.98% |
| 5 years | 5.64% |
The average dividend growth is 5.64% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
The payout ratio is a crucial indicator of dividend sustainability. Pentair maintains a payout ratio of 24.24% based on EPS and 22.60% based on free cash flow, indicating a conservative approach that leaves room for future payouts or business reinvestment.
| Key figure | Ratio |
|---|---|
| EPS-based | 24.24% |
| Free cash flow-based | 22.60% |
The EPS payout ratio of 24.24% and FCF payout ratio of 22.60% are indicative of Pentair’s strong cash flow generation, allowing secure dividend payouts.
✅ Cashflow & Capital Efficiency
Pentair's cash flow efficiency underscores its ability to fund dividends and strategic expansions while maintaining a stable financial foundation.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 4.52% | 4.12% | 4.37% |
| Earnings Yield | 5.19% | 3.72% | 3.83% |
| CAPEX to Operating Cash Flow | 12.27% | 9.70% | 8.44% |
| Stock-based Compensation to Revenue | 0.71% | 0.97% | 0.89% |
| Free Cash Flow / Operating Cash Flow Ratio | 87.73% | 90.30% | 91.56% |
The robust free cash flow yield and low CAPEX ratio indicate efficient capital allocation and strong cash flow stability, essential for sustainable growth.
⚠️ Balance Sheet & Leverage Analysis
Analyzing leverage is crucial for assessing financial health and risk. Pentair’s balance sheet positions it well for enduring cyclical market changes with moderate debt levels.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 65.08% | 49.60% | 42.35% |
| Debt-to-Assets | 31.90% | 27.41% | 23.86% |
| Debt-to-Capital | 39.42% | 33.15% | 29.75% |
| Net Debt to EBITDA | 2.26 | 1.79 | 1.63 |
| Current Ratio | 1.65 | 1.60 | 1.61 |
| Quick Ratio | 0.94 | 0.92 | 0.95 |
| Financial Leverage | 2.04 | 1.81 | 1.78 |
Pentair’s calculated use of leverage and strong liquidity ratios reflect a stable financial foundation capable of withstanding economic pressures.
📈 Fundamental Strength & Profitability
Evaluating profitability ratios helps investors understand how efficiently a company utilizes its assets. Pentair demonstrates robust profitability metrics across the board.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 19.36% | 17.55% | 16.90% |
| Return on Assets | 9.49% | 9.70% | 9.52% |
| Net Margin | 15.17% | 15.32% | 15.66% |
| EBIT Margin | 17.96% | 19.78% | 19.78% |
| EBITDA Margin | 20.76% | 22.58% | 22.60% |
| Gross Margin | 37.01% | 39.16% | 40.48% |
| R&D to Revenue | 2.43% | 2.29% | 2.30% |
With strong return metrics and healthy margins, Pentair signifies efficient operational management and superior profitability potential.
📉 Price Development
✅ Dividend Scoring System
This scoring system provides an evaluative framework for understanding Pentair’s dividend vigour across several key metrics.
| Criterion | Score | 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 |
Overall Score: 34/40
🗣️ Rating
Pentair plc stands out as a reliable income stock given its substantial dividend history, growth, and robust financial underpinnings. Despite a mediate yield, the solid growth rates and secure payout ratios suggest a stable investment opportunity.
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