PNRPentair
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (1.1×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 17% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PNR?
Pentair earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.0 points above what the capital costs: growth creates value
- Operating margin
- 21%
Operating margin · Specialty Industrial Machinery median 14% · 12 months to Q1 2026
- Cash conversion
- 1.06×
Cash conversion · 1.17× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 15% |
| FY2021 | 17% |
| FY2022 | 14% |
| FY2023 | 18% |
| FY2024 | 20% |
| FY2025 | 21% |
Details›
- Gross margin12 months to Q1 2026
- 41%
- Operating margin12 months to Q1 2026
- 21%
- Net margin12 months to Q1 2026
- 16%
- Free cash flow margin
- 17%
- R&D as % of revenue
- 2.3%
- Revenue, trailing twelve months
- $4.20B
- Free cash flow, trailing twelve months
- $716M
- Net income, trailing twelve months
- $671M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Industrial Machinery
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