# Pentair (PNR.US)

Canonical: https://gigainvestors.com/s/PNR

Analysis as of: 2026-10-16T07:31:16.140Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $53.45 per share; close as of 2026-10-15.

Estimated value: low $43.82 per share, central $49.85 per share, high $57.88 per share. Buy at or below the central value $49.85 per share. Valuation as of 2026-10-16T07:31:16.140Z; scenarios are not confidence intervals.

Expected annual return: 9.5% at the stated quote. About 9.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.15×

- FY2019: 0.15×

- FY2020: 0.15×

- FY2021: 0.17×

- FY2022: 0.14×

- FY2023: 0.18×

- FY2024: 0.20×

- FY2025: 0.21×

- LTM to Jun 2026: 0.19×

### moat: pass

- ROIC, median of available years: 38.3%

- ROIC, second-lowest year: 29.9%

- Typical minus recent gross margin: -4.2 pp

- Typical gross margin (annual median): 36.3%

- Recent gross margin (lower of latest and 3-year median): 40.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 12.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 15.2%

- FY2018: 71.4%

- FY2019: 53.1%

- FY2020: 68.2%

- FY2021: 70.2%

- FY2022: 29.9%

- FY2023: 39.6%

- FY2024: 36.3%

- FY2025: 36.9%

- LTM to Jun 2026: 35.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.1B

- Net income, five-year total: $2.9B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 1.1 pp

- Working capital / revenue, change between three-year averages: 8.2 pp

- Working capital / revenue, final three-year average: 24.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.03×

- FY2022: 1.04×

- FY2023: 1.06×

- FY2024: 1.06×

- FY2025: 1.07×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 15.2% vs 36.9%

- Per-share earnings: 2.85 to 3.75 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -4.8%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: $7.0B

- Cumulative retained earnings: $755M

- Diluted shares, 10-year annual growth: -4.8%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.5%

- Per-share value change: $0.89

- Per-share value, starting three-year median: $2.85

- Per-share value, ending three-year median: $3.75

- Buybacks concentrated in cheaper years (correlation): 0.17

- Average buyback yield: 2.1%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: $2.7B

- Cumulative net income, 10 years: $5.2B

- ROIC, first three-year median: 15.2%

- ROIC, last three-year median: 36.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.85

- FY2017: $3.63

- FY2018: $1.96

- FY2019: $2.09

- FY2020: $2.14

- FY2021: $3.30

- FY2022: $2.90

- FY2023: $3.75

- FY2024: $3.74

- FY2025: $3.95

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -2.3%

- Receivables to sales index (DSRI): 1.16×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 4.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.25×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.19×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.9%

- FY2017: 0.5%

- FY2018: -2.4%

- FY2019: 0.1%

- FY2020: -5.1%

- FY2021: -1.3%

- FY2022: 1.8%

- FY2023: 0.1%

- FY2024: -2.2%

- FY2025: -2.3%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 52% since Sep 2025 · "Pentair Q2 Shortfall Tied to Pool Destocking, Dealer Share Loss, RBC Says" (finance.yahoo.com, Jul 2026) · sales -3.9%

Story as of 2026-10-16T09:59:25.364Z; price observation 2026-10-15.

Price needs cash profits to grow 1.8% a year for ten years

- 2025-04-22: Pentair tops first-quarter profit estimates on robust demand for aftermarket services ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/pentair-tops-first-quarter-profit-131108923.html))

- 2026-02-03: Pentair shares slide on water segment sales drop and residential restructuring ([seekingalpha.com](https://seekingalpha.com/news/4546563-pentair-shares-slide-on-water-segment-sales-drop-and-residential-restructuring?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-01: Why Pentair (PNR) Is Down 10.8% After Raising 2026 EPS Guidance And Shuffling Leadership ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/why-pentair-pnr-down-10-073047071.html))

- 2026-07-15: Pentair Stock Tanks on Slashed Guidance, Weak Earnings, and CFO Resignation ([finance.yahoo.com](https://finance.yahoo.com/m/8cfee09c-595e-3e1e-b712-fa92dac63045/pentair-stock-tanks-on.html))

### Sales · FY2025–2026

sales -3.9%; source https://www.sec.gov/Archives/edgar/data/77360/000007736026000007/pnr-20251231.htm; observed 2026-02-24.

- FY2017: $4.9B 

- FY2018: $3.0B 

- FY2019: $3.0B 

- FY2020: $3.0B 

- FY2021: $3.8B 

- FY2022: $4.1B 

- FY2023: $4.1B 

- FY2024: $4.1B 

- FY2025: $4.2B 

- FY2026: $4.0B 

### Gross margin · FY2026

gross margin 41.3%; source https://www.sec.gov/Archives/edgar/data/77360/000007736026000007/pnr-20251231.htm; observed 2026-02-24.

- FY2017: 37.1% 

- FY2018: 35.3% 

- FY2019: 35.6% 

- FY2020: 35.0% 

- FY2021: 35.0% 

- FY2022: 33.1% 

- FY2023: 37.0% 

- FY2024: 39.2% 

- FY2025: 40.5% 

- FY2026: 41.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are USD 4.2 billion.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2025-12-31 (filed 2026-02-24); FY2025: revenue 4176000000; grossProfit 1690300000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 37% to 40.5% during 2023–25; it earns 38.3% on its capital.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2023-12-31 (filed 2026-02-24); FY2023: grossProfit / revenue = 37%.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2024-12-31 (filed 2026-02-24); FY2024: grossProfit / revenue = 39.2%.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2025-12-31 (filed 2026-02-24); FY2025: grossProfit / revenue = 40.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2017,0.15243410369257754],[2018,0.714222258260836],[2019,0.5314830182044575],[2020,0.6823807653422044],[2021,0.7016382980949292],[2022,0.29928287547656535],[2023,0.3961839425447529],[2024,0.36342367186759833],[2025,0.36895583569904106],[2026,0.3541127940132535]]; median 0.382569889121897. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 41.6% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2016-12-31 (filed 2026-02-24); FY2016: growth capex 0; upkeep 43300000; cash acquisitions 25000000; owner earnings 659900000. Growth capex plus acquisitions / owner earnings = 0.03788452795878163.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2017-12-31 (filed 2026-02-24); FY2017: growth capex 0; upkeep 39100000; cash acquisitions 45900000; owner earnings 714600000. Growth capex plus acquisitions / owner earnings = 0.06423173803526448.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2018-12-31 (filed 2026-02-24); FY2018: growth capex 0; upkeep 48200000; cash acquisitions 900000; owner earnings 383800000. Growth capex plus acquisitions / owner earnings = 0.002344971339239187.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2019-12-31 (filed 2026-02-24); FY2019: growth capex 0; upkeep 58500000; cash acquisitions 287800000; owner earnings 377200000. Growth capex plus acquisitions / owner earnings = 0.7629904559915165.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2020-12-31 (filed 2026-02-24); FY2020: growth capex 0; upkeep 62200000; cash acquisitions 58000000; owner earnings 371500000. Growth capex plus acquisitions / owner earnings = 0.15612382234185734.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2021-12-31 (filed 2026-02-24); FY2021: growth capex 0; upkeep 60200000; cash acquisitions 338500000; owner earnings 570300000. Growth capex plus acquisitions / owner earnings = 0.5935472558302648.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2022-12-31 (filed 2026-02-24); FY2022: growth capex 0; upkeep 85200000; cash acquisitions 1580900000; owner earnings 502300000. Growth capex plus acquisitions / owner earnings = 3.147322317340235.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2023-12-31 (filed 2026-02-24); FY2023: growth capex 0; upkeep 76000000; cash acquisitions 600000; owner earnings 661700000. Growth capex plus acquisitions / owner earnings = 0.0009067553271875472.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2024-12-31 (filed 2026-02-24); FY2024: growth capex 0; upkeep 74400000; cash acquisitions 108000000; owner earnings 665600000. Growth capex plus acquisitions / owner earnings = 0.1622596153846154.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2025-12-31 (filed 2026-02-24); FY2025: growth capex 0; upkeep 68800000; cash acquisitions 292100000; owner earnings 702700000. Growth capex plus acquisitions / owner earnings = 0.41568236800910774.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,243600000],[2017,251700000],[2018,187200000],[2019,122700000],[2020,127100000],[2021,133000000],[2022,138600000],[2023,145200000],[2024,152300000],[2025,164300000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/PNR.US.json#2025-12-31 (filed 2026-02-24); FY2025: cash repurchases 225000000 USD.

### Are managers owners

Insiders own 1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PNR.US SharesStats.PercentInsiders = 0.9570000000000001 percentage points; cache date 2026-10-16.

### What could break it

"Our subsidiaries are party to asbestos-related litigation" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/77360/000007736026000007/pnr-20251231.htm (filed 2026-02-24); Our subsidiaries are party to asbestos-related litigation

### What the price says

The price assumes cash profits grow 1.8% yearly over ten years; actual growth was 6.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.012450846678341176. Price 53.45; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.3490996772976267 → FY2025 4.245921450151058. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $55.13 per share

- 2016-11: $57.46 per share

- 2016-12: $56.07 per share

- 2017-01: $58.63 per share

- 2017-02: $58.06 per share

- 2017-03: $62.78 per share

- 2017-04: $64.51 per share

- 2017-05: $66.22 per share

- 2017-06: $66.54 per share

- 2017-07: $63.07 per share

- 2017-08: $62.05 per share

- 2017-09: $67.96 per share

- 2017-10: $70.46 per share

- 2017-11: $71.16 per share

- 2017-12: $70.62 per share

- 2018-01: $71.50 per share

- 2018-02: $68.69 per share

- 2018-03: $68.13 per share

- 2018-04: $67.28 per share

- 2018-05: $43.64 per share

- 2018-06: $42.08 per share

- 2018-07: $44.65 per share

- 2018-08: $43.48 per share

- 2018-09: $43.35 per share

- 2018-10: $40.15 per share

- 2018-11: $42.70 per share

- 2018-12: $37.78 per share

- 2019-01: $41.19 per share

- 2019-02: $42.54 per share

- 2019-03: $44.51 per share

- 2019-04: $38.99 per share

- 2019-05: $34.82 per share

- 2019-06: $37.20 per share

- 2019-07: $38.81 per share

- 2019-08: $35.92 per share

- 2019-09: $37.80 per share

- 2019-10: $41.47 per share

- 2019-11: $44.35 per share

- 2019-12: $45.87 per share

- 2020-01: $42.93 per share

- 2020-02: $39.39 per share

- 2020-03: $29.76 per share

- 2020-04: $34.59 per share

- 2020-05: $39.14 per share

- 2020-06: $37.99 per share

- 2020-07: $42.85 per share

- 2020-08: $45.14 per share

- 2020-09: $45.77 per share

- 2020-10: $49.76 per share

- 2020-11: $51.82 per share

- 2020-12: $53.09 per share

- 2021-01: $54.46 per share

- 2021-02: $55.93 per share

- 2021-03: $62.32 per share

- 2021-04: $64.51 per share

- 2021-05: $68.97 per share

- 2021-06: $67.49 per share

- 2021-07: $73.67 per share

- 2021-08: $77.16 per share

- 2021-09: $72.63 per share

- 2021-10: $73.97 per share

- 2021-11: $73.69 per share

- 2021-12: $73.03 per share

- 2022-01: $63.70 per share

- 2022-02: $57.91 per share

- 2022-03: $54.21 per share

- 2022-04: $50.75 per share

- 2022-05: $50.17 per share

- 2022-06: $45.77 per share

- 2022-07: $48.89 per share

- 2022-08: $44.50 per share

- 2022-09: $40.63 per share

- 2022-10: $42.95 per share

- 2022-11: $45.77 per share

- 2022-12: $44.98 per share

- 2023-01: $55.38 per share

- 2023-02: $55.94 per share

- 2023-03: $55.27 per share

- 2023-04: $58.08 per share

- 2023-05: $55.47 per share

- 2023-06: $64.60 per share

- 2023-07: $69.50 per share

- 2023-08: $70.26 per share

- 2023-09: $64.75 per share

- 2023-10: $58.12 per share

- 2023-11: $64.54 per share

- 2023-12: $72.71 per share

- 2024-01: $73.17 per share

- 2024-02: $77.79 per share

- 2024-03: $85.44 per share

- 2024-04: $79.09 per share

- 2024-05: $81.38 per share

- 2024-06: $76.67 per share

- 2024-07: $87.87 per share

- 2024-08: $88.69 per share

- 2024-09: $97.79 per share

- 2024-10: $99.12 per share

- 2024-11: $108.99 per share

- 2024-12: $100.64 per share

- 2025-01: $103.68 per share

- 2025-02: $94.20 per share

- 2025-03: $87.48 per share

- 2025-04: $90.73 per share

- 2025-05: $99.18 per share

- 2025-06: $102.66 per share

- 2025-07: $102.20 per share

- 2025-08: $107.53 per share

- 2025-09: $110.76 per share

- 2025-10: $106.35 per share

- 2025-11: $105.24 per share

- 2025-12: $104.14 per share

- 2026-01: $105.37 per share

- 2026-02: $99.19 per share

- 2026-03: $87.11 per share

- 2026-04: $80.71 per share

- 2026-05: $70.84 per share

- 2026-06: $76.66 per share

- 2026-07: $65.44 per share

- 2026-08: $60.46 per share

- 2026-09: $52.99 per share

- 2026-10: $53.45 per share

## Annual estimated value (USD per share)

- FY2016: low $26.25 per share, central $29.76 per share, high $34.44 per share

- FY2017: low $29.09 per share, central $33.10 per share, high $38.44 per share

- FY2018: low $23.75 per share, central $27.01 per share, high $31.35 per share

- FY2019: low $24.69 per share, central $28.08 per share, high $32.58 per share

- FY2020: low $25.64 per share, central $29.15 per share, high $33.83 per share

- FY2021: low $31.91 per share, central $36.30 per share, high $42.14 per share

- FY2022: low $34.86 per share, central $39.65 per share, high $46.02 per share

- FY2023: low $34.94 per share, central $39.69 per share, high $46.00 per share

- FY2024: low $40.68 per share, central $46.25 per share, high $53.68 per share

- FY2025: low $44.57 per share, central $50.70 per share, high $58.86 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:00.669Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/77360/000007736026000007/pnr-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.