Quality Investor

Pentair plc

Rank #295Value

PNR · NYSE · Industrials

Pentair plc (PNR) — Rank #295 by gross profitability (GP/assets 0.24) · ROE 17.2% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0000077360 · all metrics point-in-time as of the filing date.

About

Pentair plc provides various water solutions in the United States, Western Europe, China, Latin America, the Middle East, Southeast Asia, Australia, and Canada.

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It operates through three segments: Flow, Water Solutions, and Pool. The Flow segment designs, manufactures, and sells fluid treatment and pump products and systems, including pressure vessels, gas recovery solutions, membrane bioreactors, wastewater reuse systems and advanced membrane filtration, separation systems, specialty insertion valves, water disposal pumps, water supply pumps, fluid transfer pumps, turbine pumps, solid handling pumps, and agricultural spray nozzles. This segment provides products under Pentair Flow, Aurora, Berkeley, Codeline, Fairbanks-Nijhuis, Haffmans, Hydromatic, Hypro, Jung Pumpen, Myers, Sta-Rite, Shurflo, Südmo, and X-Flow brand names. The Water Solutions segment offers commercial and residential water treatment products and systems, such as pressure tanks, control valves, activated carbon products, commercial ice machines, conventional filtration products, and point-of-entry and point-of-use water treatment systems for use in water filtration and water softening solutions, as well as commercial water management and filtration solutions in foodservice operations; and installation and preventative services for water management solutions for commercial operators under the Pentair Water Solutions, Everpure, Fleck, Manitowoc Ice, Pentek, and RainSoft brands. The Pool segment provides residential and commercial pool equipment and accessories, including pumps, filters, heaters, lights, automatic controls and cleaners, chlorinators, maintenance equipment, and pool accessories for residential and commercial pool maintenance, pool repair, renovation, service, construction, and aquaculture solutions. This segment offers products under the Pentair Pool, Kreepy Krauly, Pleatco, and Sta-Rite brands.

Pentair plc was founded in 1966 and is headquartered in London, the United Kingdom.

Industry
Specialty Industrial Machinery
Sector
Industrials
State
L2
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

PNR-22.4% · -4.9% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$9.13B

P/E (annual)

14.3

P/S (annual)

2.2

P/B

2.4

P/OCF (annual)

11.2

Shareholder Yield

2.8%

Employees

9,000

Industry

Specialty Industrial Machinery

Exchange

NYSE

Signal Flags

4 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.24
Return on equity
17.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.86
Current ratio
1.88×
Net cash
-$1.88B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.9%

Growth

2/2 pass
Revenue growth
2.3%
Piotroski F-Score
7 / 9
Share dilution
-1.0%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

1.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.0% — per-share value needs a total required return of 0.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 2.2%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-2.6%

r = 10% (base)

1.3%

r = 12%

4.7%

Net debt / market cap: 20.1%

Base FCF: $746M3Y mean FCF: $660.5M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

26.0xExpensive
11.7xmed 20.1x26.0x

P / S

Price / revenue per share

4.1xExpensive
2.2xmed 2.8x4.1x

P / B

Price / book value per share

4.4xExpensive
1.5xmed 3.9x4.4x

P / GP

Price / gross profit per share

10.1xExpensive
6.6xmed 8.0x10.1x

P / FCF

Price / free cash flow per share

22.8xFair
9.5xmed 20.9x32.6x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.24

Primary signal (Novy-Marx).

46th pctl of 36 SIC 35 peers

Return on equity

17.2%

Gross margin

40.5%

49th pctl of 36 SIC 35 peers

Revenue growth (YoY)

2.3%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

0.4%

Revenue CAGR (5Y)

6.7%

Earnings CAGR (3Y)

10.8%

FCF CAGR (3Y)

38.9%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.86

46th pctl of 36 SIC 35 peers (best = lowest)

Current ratio

1.88×

40th pctl of 36 SIC 35 peers

Quick ratio

Net cash

-$1.88B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$746.00M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.14

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.9%

Stock-based comp intensity.

Dividend safety

Composite score

3.8 / 5

Good
Payout ratio
25.1%5/5 Strong
FCF coverage
4.54×5/5 Strong
Dividend growth streak
6 yr3/5 Good
Balance-sheet health
D/E 0.86 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Value
Op. Leverage
Capital Return