Parnassus Investments LLC Decreases Stake in Pentair plc by 39.6% in Q1
July 21, 2023
🌥️Trending News
Pentair ($NYSE:PNR) plc is a leader in global water, fluid, thermal management, and equipment protection solutions. The company operates in various sectors including residential, commercial and industrial applications, as well as energy and infrastructure. Recently, a filing with the U.S. Securities and Exchange Commission has revealed that Parnassus Investments LLC has reduced its holdings of Pentair plc shares by 39.6% in the first quarter.
It is uncertain why Parnassus Investments has decided to reduce its stake in Pentair plc, however, the company may have sold off its holdings in order to raise capital for other investments or to diversify its portfolio. Whatever the reason may be, it appears that the firm’s decision to reduce its stake in Pentair plc has had an impact on the company’s stock price.
Analysis
GoodWhale conducted an analysis of PENTAIR PLC‘s financials and found that PENTAIR PLC has a high health score of 8/10. This means that considering its cashflows and debt, the company is capable of sustaining future operations in times of crisis. We noticed that PENTAIR PLC is particularly strong in dividend and profitability, but weak in asset and growth. Based on our Star Chart, we concluded that PENTAIR PLC is a ‘rhino’ type of company, which has achieved moderate revenue or earnings growth. For investors interested in such a company, we suggest looking into the company’s dividend policies and profitability metrics, as these have been the strongest aspects of PENTAIR PLC. Additionally, investors may want to consider the potential risk posed by PENTAIR PLC’s weaknesses in asset and growth. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pentair Plc. More…
| Total Revenues | Net Income | Net Margin |
| 4.15k | 493 | 11.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pentair Plc. More…
| Operations | Investing | Financing |
| 388.2 | -1.58k | 1.21k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pentair Plc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.67k | 3.86k | 16.42 |
Key Ratios Snapshot
Some of the financial key ratios for Pentair Plc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.7% | 10.8% | 15.7% |
| FCF Margin | ROE | ROA |
| 7.3% | 15.0% | 6.1% |
Peers
The market for water treatment equipment is highly competitive with many large and small companies vying for market share. The four largest companies in the market are Pentair PLC, Xylem Inc, Watts Water Technologies Inc, and Evoqua Water Technologies Corp. These companies compete on a variety of factors including product innovation, price, and distribution.
– Xylem Inc ($NYSE:XYL)
Xylem Inc. is a leading global water technology company that provides innovative solutions to the world’s water challenges. Its products and services are used in more than 150 countries to help manage water resources, protect public health and enhance water quality for people and businesses. Xylem has a market cap of 16.4 billion as of 2022 and a return on equity of 10.79%. The company’s products and services are used in a variety of applications, including residential, commercial, industrial, municipal and agricultural.
– Watts Water Technologies Inc ($NYSE:WTS)
Watts Water Technologies is a leading provider of water solutions for the residential, commercial, and industrial markets. The company’s products include plumbing, heating, and water treatment products. Watts Water Technologies has a market cap of 4.2 billion as of 2022 and a return on equity of 15.67%. The company’s products are used in a variety of applications, including residential and commercial plumbing, heating, and water treatment.
– Evoqua Water Technologies Corp ($NYSE:AQUA)
Evoqua Water Technologies Corp is a publicly traded water treatment company headquartered in Warrendale, Pennsylvania. The company has a market capitalization of $4.11 billion and a return on equity of 9.96%. Evoqua Water Technologies provides water treatment solutions for industrial and municipal customers across the globe. The company’s products and services are used in a variety of applications, including water and wastewater treatment, desalination, and water reuse.
Summary
Parnassus Investments LLC conducted an investment analysis on Pentair PLC, and in the first quarter of the year, the firm reduced its holdings in the company by 39.6%. This suggests that Parnassus believes there is a lower potential for profit from Pentair, though it’s not clear what factors were taken into account in their analysis. Investment professionals typically consider a variety of metrics when evaluating a company, such as financial statements, industry trends, competitor analysis, and product development. It is unknown what Parnassus used in their analysis of Pentair, though their decision to reduce their exposure to the company suggests that they believe other investments may be more profitable.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
