It is the first time I am looking at Pentair. PNR is a diversified industrial company operating mainly in technical solutions, water quality systems and flow & filtration systems.

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Company is one of The Dividend Aristocrats, paying increasing dividends since 1977 year. Currently dividend yield is around 2.5%, which is about long term average yield. Shares are more or less flat since 2013 (there was an acquisition and big share issue). Since that time number of shares is declining from around 210m to around 180m, so 15% within 4 years, not bad, additional 4% buyback rate.

Financials based on 4-traders.com

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Decline is mainly due to divestiture of Valves & Controls (around $1.00 negative impact):

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If we look in long term company is performing better than S&P500.

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Summing up, company is going through transformation. At first sight I see no special story with multiples for 2017: P/E = 17.4 and EV/EBITDA = 12.3 it is just neutral for me. Dividend yield is ok, share price is not at all time high. I need more time to feel better with company, understand it etc. For now just neutral.

 

Disclosure: PNR – no position.