Gold prices edge higher with focus on Ukraine-Russia, Jackson Hole
On Tuesday, CFRA analyst Jonathan Sakraida maintained a Hold rating on Pentair (NYSE:PNR) with a steady price target of $105.00. According to InvestingPro analysis, the stock appears slightly overvalued at current levels, trading at a P/E ratio of 24.85. Sakraida’s valuation is based on a multiple of 20.3 times the projected earnings per share (EPS) for 2026, which is set at $5.16. This anticipated EPS reflects a slight decrease in the 2025 EPS forecast, now adjusted to $4.70 from the previously expected $4.80. The analyst justifies the higher valuation multiple by pointing to Pentair’s successful efforts in diversifying its business, which is expected to stabilize earnings and sales performances.
Pentair recently reported a fourth-quarter EPS of $1.08, marking a 23% increase year-over-year and surpassing the consensus estimate by $0.06. The company’s strong performance is reflected in its impressive 40.48% one-year return, as tracked by InvestingPro. Despite a 1% year-over-year decline in net sales, driven by decreases in the Flow and Water Solutions segments, the Pools division exhibited a 5% increase. Notable for investors, Pentair has maintained dividend payments for an impressive 50 consecutive years. This mixed sales performance was counterbalanced by significant margin growth across the company’s portfolio.
The fourth quarter saw Pentair’s adjusted operating margins improve by 370 basis points, reaching 23.8%. This margin expansion played a crucial role in the company’s earnings growth, despite the overall sales dip.
Looking ahead to 2025, Sakraida anticipates that Pentair’s revenues will remain relatively flat or experience a slight increase. The analyst suggests that higher interest rates may limit Pentair’s growth in the near term. Nonetheless, a continued emphasis on profitability is expected to contribute to earnings expansion, even in the face of these headwinds. InvestingPro data shows the company maintains strong financial health with a "GREAT" overall score, operating with moderate debt levels and liquid assets exceeding short-term obligations. For deeper insights into Pentair’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, water treatment company Pentair reported fourth-quarter earnings and full-year guidance that did not meet analyst expectations. The company’s Q4 adjusted earnings per share came in at $1.08, falling short of the anticipated $1.02. Revenue for the quarter was $973 million, in line with expectations but marking a 1.2% decrease year-over-year. For the full year 2024, Pentair reported sales of $4.1 billion, a 0.5% drop compared to 2023, with adjusted earnings per share at $4.33.
Looking to the future, Pentair’s guidance for 2025 disappointed analysts. The company expects full-year adjusted earnings per share to range from $4.65 to $4.80, below the consensus analyst estimate of $4.83. Additionally, Pentair anticipates sales for 2025 to be flat or possibly increase by up to 2%.
In other developments, the company expects first quarter 2025 sales to decrease approximately 3% to 4% compared to Q1 2024, with adjusted EPS projected between $1.00 and $1.02. Despite the disappointing forecast, Pentair maintained its status as a dividend aristocrat, announcing a 9% dividend increase for 2025, marking the 49th consecutive year of dividend increases.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.