Pentair plc (PNR): a likely value trap?

Avoid — the crash was driven by a severe guidance cut, a big earnings miss, and a surprise CFO exit, all pointing to real deterioration in the Pool business.

⚠ TRAP Fundamentals74/100

Fell 15% in 1 trading day(s) — now $64.33

Why PNR dropped

Pentair pre-announced weak Q2 results (sales ~$930M, 17% below prior guidance) after the close on July 14, 2026, slashed full-year 2026 guidance from growth to a 4-7% revenue decline, and disclosed that its CFO of only four months abruptly resigned — all attributed mainly to severe inventory destocking in its Pool distribution channel.

Fwd P/E 11.5Op margin 22.7%Rev growth 2.6%Debt/equity 54.6%Analyst upside 33.9%

How this scored 74/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 16.0%

✅ Generates cash Free cash flow $574M

✅ Not drowning in debt Debt/equity 54.6% (limit 200%)

✅ Can pay its bills Current ratio 1.9 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 20/25

Operating margin 22.7% 8/9

Net profit margin 16.0% 6/8

Return on equity 17.6% 5/8

Growth Is it getting bigger, or dying? 15/25

Revenue growth 2.6% 2/9

Earnings growth 13.0% 5/8

Expected profit change 40.9% 8/8

Value Is it cheap right now? 19/25

Forward P/E 11.5 9/10

PEG ratio 1.1 6/8

Analyst target upside 33.9% 4/7

Balance sheet Will it survive? 20/25

Debt / equity 54.6% 8/10

Current ratio 1.9 5/8

Free cash flow $574M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-16. Research only — not financial advice.