Buffett Brain · Research note
Score updated 23 Oct 2026 · analysis from 26 Jul 2026
PNR· Industrials
Pentair
Pentair's operating margin of 20.6% places it in the top quintile of its sector, but the overall moat and ROIC raise concerns for long-term investment.
Buffett fit
Partial fit
Owner
44
Durability
70
Management
60
Price
58
Score updated 23 Oct 2026 · analysis from 26 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Pentair outright, I would focus on maintaining its of 20.6% and ensuring it can reinvest profits effectively.
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Looking ahead 10 years, I would want to ensure that Pentair can maintain its profitability without significant capital intensity.
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Pentair has a share count CAGR of -0.26%, indicating a slight reduction in shares outstanding, which is a positive sign for .
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With a of 18.4 and an yield of 6.09%, the valuation is somewhat stretched compared to my target of 8-10% yield.
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- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 20.6% ranks in the top quintile of the sector, indicating strong profitability.
- 2 of $746M supports operational flexibility and potential reinvestment.
- 3Net margin of 16.0% is above the sector top-quintile cutoff of 13.8%, showcasing effective cost management.
- 4Consistent profitability over the last 5 years, with no annual losses.
Concerns
5- 1 of 12.1% is below the sector top-quintile cutoff of 13.6%, raising questions about long-term capital efficiency.
- 2 of 40.9% is below the sector top-quintile cutoff of 43.4%, suggesting potential pricing pressures.
- 3 growth of 7.76% is decent but not robust enough to ensure strong reinvestment opportunities.
- 4The yield of 0.94% is low; management could be more aggressive in returning capital to shareholders.
Price history
$55.44-25.1%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Pentair operates through two segments: Consumer Solutions and Industrial & Flow Technologies, generating $4.18B in revenue. The Consumer Solutions segment focuses on pool equipment and water treatment products, while the Industrial segment offers fluid treatment and separation systems. This diversified revenue stream supports consistent cash flow, with a of $746M.
How this analysis has moved
The call has held across 3 reviews.
Oct 11, 2026 → Oct 23, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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