PNR Value Scorecard - Pentair

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

45/60

moderate value score

Earnings & returns

EPS Trend

4/5

Diluted EPS: $2.90 (2022), $3.75 (2023), $3.74 (2024), $3.96 (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

ROE Trend

4/5

ROE (net income / common equity): 17.8% (2022), 19.4% (2023), 17.6% (2024), 16.9% (2025). Median 17.7%, lowest 16.9%; the framework scores a median 15-20% as 4.

ROIC

3/5

ROIC of 14.5%: operating income of $857.50M divided by $5.91B of capital (total assets $6.87B minus current liabilities $959.30M), fiscal year to Dec 31, 2025, as filed in the 10-K (SEC EDGAR). The framework scores 10-15% as 3.

Profit Margins

4/5

Net margin of 16.2%; the framework scores 10-20% as 4; gross margin 41.4%, operating margin 23.4%.

Balance sheet & cash

Debt-to-Equity

4/5

Debt-to-equity of 0.47; the framework scores 0.3-0.8 as 4 (total debt $1.76B, total cash $91.80M).

Free Cash Flow

5/5

Free cash flow (operating cash flow minus capital expenditure): $278.10M (2022), $543.20M (2023), $692.30M (2024), $746.00M (2025). It rose every year; the framework scores that as 5.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $1.39B (2022), $1.87B (2023), $2.34B (2024), $2.82B (2025). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

3/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $3.88 x (8.5 + 2 x 2.8) x (4.4 / 4.5) = $53.49. Current price $53.44; price is 0.1% below the model value.

DCF Value

2/5

FCF/share = $3.455, stage 1 growth = 0.9% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $13.43, PV of terminal value = $33.01, DCF value = $46.44. Current price $53.44; price is 15.1% above the model value.

Margin of Safety

3/5

Graham value $53.49 (price is 0.1% below the model value); DCF value $46.44 (price is 15.1% above the model value).

Price-to-Book

3/5

P/B of 2.28; the framework scores 1.5-3.0 as 3.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 1 of 10 years (2016-2025); lowest 3.5%, highest 17.2%.

Gross margin, each year

Between 33.1% and 40.5% over 10 years (a range of 7.4 points).

Competition, in the company’s own words · 10-K filed Feb 24, 2026

Flow faces numerous domestic and international competitors, some of which have substantially greater resources directed to the vertical markets in which we compete. Competition focuses on brand names, product performance (including energy-efficient offerings and required specifications), quality, service and price. We compete by offering a wide variety of innovative and high-quality products, which we believe are competitively priced.

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $1.03B paid out against $2.26B of free cash flow (pass); total debt $2.40B to $1.77B, down 26.4%, 1.9x EBITDA (pass: not up more than 10%); shares outstanding 0.16B to 0.16B, down 0.8% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $3.88, g = 2.8%, Y = 4.5
    IV = $53.49
    Current price $53.44 vs Graham value $53.49 — price is 0.1% below the model value.

  DCF:
    FCF/share = $3.455
    Stage 1 growth = 0.9% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $3.486 → PV $3.169
      Y2: $3.517 → PV $2.907
      Y3: $3.549 → PV $2.666
      Y4: $3.581 → PV $2.446
      Y5: $3.613 → PV $2.243
    Stage 1 PV sum = $13.43
    Terminal value at end of Y5 = $53.16
    PV of terminal value = $33.01
    DCF value = $46.44
    Current price $53.44 vs DCF value $46.44 — price is 15.1% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $53.44. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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