What does water quality systems — goodwill mean?

The value of intangible assets like brand and customer base recorded in the Water Quality Systems segment from past acquisitions.

How do you interpret water quality systems — goodwill?

High goodwill levels indicate a history of M&A, while sudden decreases may signal impairment charges due to underperforming acquisitions.

How does water quality systems — goodwill compare across companies?

Standard goodwill reporting for segments that grow through inorganic acquisition strategies.

Pentair PNR Water Quality Systems — Goodwill

Discontinued — last reported Q4 '16

Similar metrics at other companies

VLTOWater Quality — Goodwill

$1.56B+21.8%

WTSWater Quality — Goodwill Gross

$0—

VLTOWater Quality — Goodwill, Acquired During Period

$5.75M—

WTRGWater — Goodwill

$66.77M+14.3%

AMWater Handling — Goodwill

$359M—

XYLWater Infrastructure — Goodwill

$2.26B+5.8%

Other financials

Income statement

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Revenue$1.0B+2.6%

Gross profit$433.4M+7.5%

Operating income$210.0M+3.4%

Net income$172.4M+11.3%

EPS (diluted)$1.05+12.9%

Balance sheet

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Cash & equivalents$67.7M-51.8%

Total debt$2.7B+36.0%

Total equity$3.8B+4.9%

Total assets$7.1B+4.8%

Cash flow

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Operating cash flow-$67.4M-73.3%

CapEx$18.5M+10.1%

Free cash flow-$85.9M-54.2%

Valuation

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Market cap$12.01B-2.5%

Enterprise value$14.6B+2.6%

P/E17.9×-1.1×

P/S2.9×-0.2×

Profitability

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Gross margin40.9%+1.4pp

Operating margin20.6%+0.3pp

Net margin16%+0.1pp

FCF margin17%-1.7pp

Returns & leverage

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Return on equity18%-0.6pp

Debt / equity0.7×+0.2×

Current ratio1.9×0.0×

Where this comes from

Reported directly by Pentair in its filing.

Tagged under the XBRL concept us-gaap:Goodwill.

The official record: Pentair’s 10-K, filed February 21, 2017, on SEC EDGAR. View the filing →

Questions, answered.

What does water quality systems — goodwill mean?: The value of intangible assets like brand and customer base recorded in the Water Quality Systems segment from past acquisitions.
How do you interpret water quality systems — goodwill?: High goodwill levels indicate a history of M&A, while sudden decreases may signal impairment charges due to underperforming acquisitions.
How does water quality systems — goodwill compare across companies?: Standard goodwill reporting for segments that grow through inorganic acquisition strategies.