Financial Analysis - Pentair

Pentair Incorporated

Company Background

Pentair Incorporated is a company with two divisions and several brand names underneath each of those two divisions. The first division, called “Water Solutions,” is focused on large scale water handling such as for cities, medium-small scale water handling such as for people’s homes, and everything in between. This includes filters, pumps, flow measurement, and much more.

The second division, called “Technical Products” is focused on design & production of custom enclosures for unique & expensive electronics such as for housing cameras high up on poles in a corrosive environment, or road-side enclosures for electric cars to park next to and plug into for recharge. In addition to building boxes, Pentair specializes in management of heat generated by the electronics within the box.

The products in the water segment are sold mainly thru wholesale and retail distributors, original equipment manufacturers and home centers. The technical products are sold mainly thru electrical and data contractors, electrical and electrical components distributors, and original equipment manufacturers. There is a wide diversity in the industries in which the products are used from automotive, medical, energy, security and defense for our technical products. The water products are diverse as well ranging from residential home filtration and pools to providing water solutions for stadiums and as large as municipal water solutions.

Some of the most recent projects include the Gulf Intracoastal Waterway West Closure Complex. This is touted as the world’s largest pump station, which will provide flood control to New Orleans. They also are the Minnesota Twins water solutions provider, which includes a Rain Water Recycle System that will allow the Twins to water the field and wash the lower deck seats, while reducing the use of city water by 50%.

Cost of Capital, Company Wide

Pentair has a company-wide Weighted...