Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have looked at Pentair many times over the years, and for a while it looked like the kind of company we admire: a leader in residential pool equipment — a genuine oligopoly with razor-and-blade economics — attached to a collection of decent water businesses, run by operators who kept expanding margins and raising the dividend for 50 consecutive years. But the events of the past ninety days force us to be honest about what we now know. The Pool segment — the crown jewel and the entire premise of a "wonderful business" thesis — just reported a 42% revenue collapse in a quarter when its chief competitor, Hayward, grew 6% and raised nothing but its stock price. That is not an industry problem. That is a Pentair problem, and it tells us the reported earnings of the past several quarters overstated true end-demand while the channel silently filled with unsold Pentair product.
Recent filings analysed: 8-K (2026-07-28), 10-Q (2026-07-28), 8-K (2026-07-14), 8-K (2026-05-06).
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