← All companies ← PNM Manual PNTG → ← PKOH Industrial Machinery PSIX →

PNR, Pentair plc. Ordinary Share

Industrial Machinery capital-intensive Serial acquirer

Pentair is an S&P 500 company focused on smart, sustainable water solutions that help our planet and people thrive.

Pentair strategy Our vision is to be the world's most valued sustainable water solutions company for our employees, customers and shareholders.

Focus on growth in our core businesses and strategic initiatives; Accelerate digital innovation and technology as well as sustainability investments; Expedite growth and drive margin expansion through our Transformation Program; and Build a high performance growth culture and deliver on our commitments while living our Win Right values.

Latest annual: FY2025 10-K

PNR · Pentair plc. Ordinary Share

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$4.2B

+2.3% YoY · 7% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $4.2B 5-yr avg $4.0B

Gross margin 41% 5-yr avg 37%

Operating margin 20.6% 5-yr avg 17.9%

ROIC 9% 5-yr avg 14%

Owner-earnings margin 17% 5-yr avg 14%

Free cash flow margin 17% 5-yr avg 14%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Serial acquirer. Goodwill and acquired intangibles are 67% of assets, with meaningful acquisition spending in 5 of the record's 10 years; much of what this business is was bought, at prices the record carries.
What moves the needle: Gross margin has run about 35% and operating margin about 15% through the cycle, a solid spread between what it charges and what the product costs to make. Inventory runs near 15% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the capital-goods cycle and the aftermarket. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run in the teens (median 13%, above 15% in 1 of 10 years). Owner earnings agree: roughly 16% of revenue reaches owners as cash, consistently. Returns like these are solid but short of clear franchise economics; whether they hold is what the 10-K settles, not the multiple.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

30% of revenue comes from outside the United States.

Revenue by geography, FY2025

United States70%$2.9B
Developing12%$508M
Western Europe12%$496M
Other Developed6%$234M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$2.8B	$2.8B	$3.0B	$3.0B	$3.0B	$3.8B	$4.1B	$4.1B	$4.1B	$4.2B	$4.2B	RevenueRevenue
34%	35%	35%	36%	35%	35%	33%	37%	39%	40%	41%	Gross marginGross mgn
19%	19%	18%	18%	17%	16%	16%	17%	17%	18%	18%	SG&A / revenueSG&A/rev
3%	3%	3%	3%	3%	2%	2%	2%	2%	2%	2%	R&D / revenueR&D/rev
$354M	$378M	$437M	$433M	$461M	$637M	$595M	$739M	$804M	$858M	$864M	Operating incomeOp. inc.
12.7%	13.3%	14.7%	14.6%	15.3%	16.9%	14.4%	18.0%	19.7%	20.5%	20.6%	Operating marginOp. mgn
$522M	$667M	$347M	$356M	$359M	$553M	$481M	$623M	$625M	$654M	$671M	Net incomeNet inc.
8%	8%	14%	11%	17%	11%	12%	-1%	13%	14%	14%	Effective tax rateTax rate
											Cash flow & returns
$861M	$620M	$439M	$353M	$574M	$613M	$363M	$619M	$767M	$815M	$786M	Operating cash flowOp. cash
$53M	$51M	$50M	$48M	$47M	$51M	$54M	$60M	$60M	$60M	$59M	DepreciationDeprec.
$252M	($137M)	$21M	($72M)	$148M	($21M)	($197M)	($92M)	$41M	$64M	$16M	Working capital & otherWC & other
$43M	$39M	$48M	$59M	$62M	$60M	$85M	$76M	$74M	$69M	$71M	CapexCapex
1.6%	1.4%	1.6%	2.0%	2.1%	1.6%	2.1%	1.9%	1.8%	1.6%	1.7%	Capex / revenueCapex/rev
$818M	$581M	$391M	$295M	$527M	$553M	$309M	$560M	$692M	$746M	$716M	Owner earningsOwner earn.
29.4%	20.4%	13.2%	10.0%	17.5%	14.7%	7.5%	13.6%	17.0%	17.9%	17.0%	Owner earnings marginOE mgn
$818M	$581M	$391M	$295M	$511M	$553M	$278M	$543M	$692M	$746M	$716M	Free cash flowFCF
29.4%	20.4%	13.2%	10.0%	16.9%	14.7%	6.7%	13.2%	17.0%	17.9%	17.0%	Free cash flow marginFCF mgn
$25M	$46M	$900K	$288M	$58M	$339M	$1.6B	$600K	$108M	$292M	$292M	AcquisitionsAcquis.
$244M	$252M	$187M	$123M	$127M	$133M	$139M	$145M	$152M	$164M	$167M	Dividends paidDiv. paid
$0	$200M	$500M	$150M	$150M	$150M	$50M	$0	$150M	$225M	—	BuybacksBuybacks
4%	5%	15%	13%	13%	18%	11%	15%	14%	14%	9%	ROICROIC
12%	13%	19%	18%	17%	23%	18%	19%	18%	17%	18%	Return on equityROE
7%	8%	9%	12%	11%	17%	13%	15%	13%	13%	13%	Retained to equityRetained/eq
											Balance sheet
$217M	$86M	$74M	$83M	$82M	$95M	$109M	$170M	$119M	$102M	$68M	Cash & investmentsCash+inv
$524M	$357M	$388M	$377M	$420M	$563M	$790M	$678M	$611M	$633M	$642M	InventoryInvent.
$437M	$322M	$379M	$325M	$245M	$386M	$355M	$279M	$273M	$302M	$333M	Accounts payablePayables
$88M	$35M	$9M	$52M	$175M	$177M	$435M	$399M	$338M	$331M	$310M	Operating working capitalOper. WC
$2.7B	$1.7B	$1.0B	$1.1B	$975M	$1.3B	$1.6B	$1.6B	$1.4B	$1.5B	$1.8B	Current assetsCur. assets
$1.5B	$1.2B	$819M	$749M	$773M	$1.1B	$1.1B	$950M	$895M	$959M	$940M	Current liabilitiesCur. liab.
1.8×	1.5×	1.3×	1.4×	1.3×	1.2×	1.5×	1.7×	1.6×	1.6×	1.9×	Current ratioCurr. ratio
$2.0B	$2.1B	$2.1B	$2.3B	$2.4B	$2.5B	$3.3B	$3.3B	$3.3B	$3.5B	$3.5B	GoodwillGoodwill
$11.5B	$8.6B	$3.8B	$4.1B	$4.2B	$4.8B	$6.4B	$6.6B	$6.4B	$6.9B	$7.1B	Total assetsAssets
$4.3B	$1.4B	$788M	$1.0B	$840M	$894M	$2.3B	$2.0B	$1.6B	$1.6B	$5.0B	Total debtDebt
$4.1B	$1.4B	$713M	$947M	$758M	$800M	$2.2B	$1.8B	$1.5B	$1.5B	$4.9B	Net debt / (cash)Net debt
2.5×	4.3×	13.4×	14.4×	—	—	—	—	—	—	28.7×	Interest coverageInt. cov.
$4.3B	$5.0B	$1.8B	$2.0B	$2.1B	$2.4B	$2.7B	$3.2B	$3.6B	$3.9B	$3.8B	Shareholders’ equityEquity
1.2%	1.4%	0.7%	0.7%	0.7%	0.8%	0.6%	0.7%	1.0%	0.9%	1.0%	Stock comp / revenueSBC/rev
											Per share
183M	184M	177M	170M	167M	168M	166M	166M	167M	166M	164M	Shares out (diluted)Shares
$15.19	$15.49	$16.72	$17.35	$18.03	$22.48	$24.89	$24.68	$24.43	$25.23	$25.67	Revenue / shareRev/sh
$2.85	$3.63	$1.96	$2.09	$2.14	$3.30	$2.90	$3.74	$3.74	$3.95	$4.10	EPS (diluted)EPS
$4.47	$3.16	$2.20	$1.73	$3.15	$3.30	$1.87	$3.37	$4.14	$4.51	$4.37	Owner earnings / shareOE/sh
$4.47	$3.16	$2.20	$1.73	$3.05	$3.30	$1.68	$3.27	$4.14	$4.51	$4.37	Free cash flow / shareFCF/sh
$1.33	$1.37	$1.06	$0.72	$0.76	$0.79	$0.84	$0.87	$0.91	$0.99	$1.02	Dividends / shareDiv/sh
$0.24	$0.21	$0.27	$0.34	$0.37	$0.36	$0.51	$0.46	$0.45	$0.42	$0.43	Cap. spending / shareCapex/sh
$23.24	$27.42	$10.36	$11.47	$12.58	$14.46	$16.35	$19.35	$21.32	$23.38	$23.27	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+5.8%/yr	+7.0%/yr
Owner earnings / share	+0.1%/yr	+7.4%/yr
EPS	+3.7%/yr	+13.0%/yr
Dividends / share	−3.2%/yr	+5.5%/yr
Capital spending / share	+6.5%/yr	+2.3%/yr
Book value / share	+0.1%/yr	+13.2%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

166Mpeak FY2017

ROIC

14%low FY2016

Gross margin

40%low FY2022

Net debt ÷ owner earnings

2.1×peak FY2022

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$746Mowner earningsvs.$654Mnet incomelow FY2019

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $654M of profit into $746M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$654M

Owner earnings$746M · 18% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$654M	$625M	$623M	$481M	$553M
Depreciation & amortizationnon-cash charge added back	+$60M	+$60M	+$60M	+$54M	+$51M
Stock-based compensationreal costnon-cash, but a real cost	+$37M	+$40M	+$29M	+$25M	+$30M
Working capital & othertiming of cash in and out, other non-cash items	+$64M	+$41M	−$92M	−$197M	−$21M
Cash from operations	$815M	$767M	$619M	$363M	$613M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$69M	−$74M	−$60M	−$54M	−$60M
Owner earnings	$746M	$692M	$560M	$309M	$553M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	−$17M	−$31M	—
Free cash flow	$746M	$692M	$543M	$278M	$553M
Owner-earnings marginowner earnings ÷ revenue	18%	17%	14%	8%	15%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $37M), owner earnings is nearer $709M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 28.5×

Comfortable

Operating income $858M ÷ interest expense $30M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $1.5B · 1.8× operating profit

Modest net debt

Cash $102M − debt $1.6B

What this means
Netting $102M of cash and short-term investments against $1.6B of debt leaves $1.5B owed, about 1.8× a year's operating profit (1.9× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 13%

Solid through the cycle

10-yr median, range 4%–18%; 14% latest = NOPAT $737M ÷ invested capital $5.4B

Industry peers: median 12%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 14% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 15%

Solid through the cycle

10-yr median margin, range 8%–29%; latest $746M = operating cash $815M − maintenance capex $69M

Industry peers: median 11%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 18% of revenue this year, a 15% median across 10 years. Treating stock comp as the real expense it is (less $37M of SBC) leaves $709M.
Are earnings backed by cash? 1.25×

Cash-backed

Cash from ops $815M ÷ net income $654M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 52%

Returns about half

Dividends + buybacks $389M ÷ Owner Earnings $746M

What this means
Of $746M Owner Earnings, $389M (52%) went back to shareholders, $164M dividends, $225M buybacks. Net of $37M stock comp, the real buyback was about $188M. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 1.15×

Maintaining

Capex $69M ÷ depreciation $60M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $4.2B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.61×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $1.6B vs $583M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Pass

Uninterrupted dividends · paid every year (10)

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Near

Earnings +33% over the record · +24%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $3.92/share (latest year $4.05), the averaged base the calculator's gate runs on, and book value is $23.94/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 1 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 14% → 19% (3-yr avg ends)

In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

What this means
Through the cycle the operating margin widened — about 14% early to 19% lately, median 15% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +0%/yr

What this means
Owner earnings grew about 0% a year over the record.
Worst year 2016 · 12.7% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −1.1%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Dividend record paid

What this means
Paid a dividend in 10 of the years on record.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“We may use artificial intelligence in our business and in our products, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.8B

Cash & short-term investments$68M
Inventory$642M
Other current assets$1.1B

Current liabilities$940M

Debt due within a year$200K
Accounts payable$333M
Other current liabilities$607M

Current ratio1.88×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.19×stricter: inventory excluded

Cash ratio0.07×strictest: cash alone against what's due

Working capital$824Mthe cushion left after near-term bills

Debt due this year vs. cash$200K due · $68M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+2.6%the freshest read on whether the business is still growing

Current ratio, recent quarters1.6× → 1.9×

Deeper floors

Tangible book value($771M)equity stripped of goodwill & intangibles

Net current asset value($1.5B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$2.1B$137M of it operating leases

Deferred revenue$109Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Debt maturity

the debt note, SEC EDGAR →

Not how much it owes, but when it falls due, and against what. The ladder the company files, beside cash on hand and a year's owner earnings.

'26$0

'27$575M

'28$0

'29$400M

'30$278M

later$400M

Bars scaled to the largest single year; “later” is everything due after 2030, shown apart since it dwarfs the years.

Due in the next 12 months$0the first rung: what must be repaid or rolled over within the year

Within two years$575Mthe near wall, the part most exposed to today’s credit conditions

Biggest single year$575Min 2027the lumpiest maturity, where a refinancing, if needed, is largest

Total scheduled principal$1.7Bevery year plus what lies beyond, as the footnote totals it

Maturity schedule extracted from the company’s Dec 31, 2025 annual report and reconciled to the total the table states.

How the cash was used, 2016–2025

Over the record, the business generated $6.0B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$616M · 10%
Dividends$1.7B · 28%
Buybacks$1.6B · 26%
Retained (debt / cash)$2.2B · 36%

Returned to owners$3.2B
59% of the owner earnings the business produced over the span, $1.7B as dividends and $1.6B as buybacks.
Average price paid for buybacks$53.03
Across the years where the filing reports a share count, 13M shares were bought for $700M, about $53.03 each.
Net change in share count−10.6%
The diluted count fell from 183M to 164M, so the buybacks outran the stock issued to staff.
Dividend record$0.99/sh
Paid in 10 of the years on record, the per-share dividend shrinking about 3% a year. It was cut at least once along the way.
Return on what it retained4%
Of the earnings it kept rather than paid out ($1.9B over the span), annual owner earnings (first three years vs last three) grew $69M, so each retained $1 added about 0.04 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$4.6B67% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity91%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$2.7Bover 10 years buying other businesses, against $616M of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	John Stauch	$9.4M	$22.8M	$553M
2022	John Stauch	$7.8M	−$1.9M	$309M
2023	John Stauch	$10.0M	$17.9M	$560M
2024	John Stauch	$10.8M	$22.8M	$692M
2025	John Stauch	$11.4M	$14.5M	$746M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership1.3%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio210:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$37M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 4% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Pentair plc. Ordinary Share is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereIs it less profitable than it was?16.2% vs 21.0%
The owner-earnings margin averaged 21.0% early in the record and 16.2% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
Look hereAre "one-time" charges a yearly habit?8 of 10 years
Management took an impairment or write-down in 8 of the last 10 years, $152M in all. A charge taken almost every year is not one-time; it is the business — past deals coming due, and an admission the assets were worth less than what was paid. Munger's rule: when the "one-time" keeps happening, it is the business. Read it beside the goodwill the company still carries.

And these came back clean

Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?
Did receivables and inventory outpace sales?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Pension & retirement, Income taxes, Contingencies as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Industrial Machinery

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
TTCToro	$4.5B	34%	12.7%	23%	11%
LECOLincoln Electric Holdings Inc.	$4.2B	34%	14.3%	23%	11%
PNRPentair plc. Ordinary Share	$4.2B	35%	15.0%	13%	16%
ITTITT Inc.	$3.9B	32%	15.1%	18%	10%
NVTnVent Electric	$3.9B	39%	15.1%	8%	15%
JBTJBT Marel	$3.8B	35%	8.6%	11%	5%
HYHyster-Yale Inc.	$3.8B	17%	1.5%	5%	1%
KAIKadant	$1.1B	44%	14.0%	12%	12%
Group median	—	35%	14.1%	13%	11%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Pentair plc. Ordinary Share has delivered.

Today’s price $

Through the cycle, Pentair plc. Ordinary Share earns about $661M on its 15.8% median owner-earnings margin. This year’s 17.9% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($661M) Net of stock comp (−$40M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+14%/yr

Owner-earnings growth · ’16→’25+0%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $716M on 162M shares outstanding, per the 10-Q cover, as of 2026-03-31; net debt $4.9B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh PNR against another business →

Cite: Owner Scorecard, "Pentair plc. Ordinary Share (PNR), the owner's record," https://ownerscorecard.com/c/PNR, data as of 2026-07-09.

Manual order: ← PNM its page in the Manual PNTG →

Industry order: ← PKOH the Industrial Machinery chapter PSIX →