POOL CORP (POOL) Stock Fundamental Analysis
NASDAQ:POOL - Nasdaq - US73278L1052 - Common Stock - Currency: USD
Overall POOL gets a fundamental rating of 6 out of 10. We evaluated POOL against 15 industry peers in the Distributors industry. POOL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. POOL has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year POOL was profitable.
POOL had a positive operating cash flow in the past year.
Each year in the past 5 years POOL has been profitable.
In the past 5 years POOL always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 13.25%, POOL belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
POOL has a better Return On Equity (31.14%) than 85.71% of its industry peers.
POOL's Return On Invested Capital of 18.30% is amongst the best of the industry. POOL outperforms 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for POOL is significantly above the industry average of 18.88%.
The 3 year average ROIC (24.57%) for POOL is well above the current ROIC(18.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.25% | ||
| ROE | 31.14% | ||
| ROIC | 18.3% |
ROA(3y)18.73%
ROA(5y)18.98%
ROE(3y)53.54%
ROE(5y)56.35%
ROIC(3y)24.57%
ROIC(5y)25.18%
1.3 Margins
POOL has a better Profit Margin (8.38%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of POOL has grown nicely.
Looking at the Operating Margin, with a value of 11.94%, POOL is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
POOL's Operating Margin has improved in the last couple of years.
POOL's Gross Margin of 29.64% is fine compared to the rest of the industry. POOL outperforms 64.29% of its industry peers.
In the last couple of years the Gross Margin of POOL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.94% | ||
| PM (TTM) | 8.38% | ||
| GM | 29.64% |
OM growth 3Y4.04%
OM growth 5Y5.17%
PM growth 3Y0.27%
PM growth 5Y3.73%
GM growth 3Y1.41%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
POOL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, POOL has less shares outstanding
POOL has less shares outstanding than it did 5 years ago.
POOL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.97 indicates that POOL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.97, POOL belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Debt to FCF ratio of POOL is 1.64, which is an excellent value as it means it would take POOL, only 1.64 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.64, POOL is doing good in the industry, outperforming 71.43% of the companies in the same industry.
POOL has a Debt/Equity ratio of 0.61. This is a neutral value indicating POOL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, POOL is in line with its industry, outperforming 50.00% of the companies in the same industry.
Although POOL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 6.97 |
ROIC/WACC1.5
WACC12.21%
2.3 Liquidity
A Current Ratio of 2.39 indicates that POOL has no problem at all paying its short term obligations.
POOL's Current ratio of 2.39 is fine compared to the rest of the industry. POOL outperforms 64.29% of its industry peers.
A Quick Ratio of 0.77 indicates that POOL may have some problems paying its short term obligations.
POOL's Quick ratio of 0.77 is in line compared to the rest of the industry. POOL outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for POOL have decreased strongly by -15.92% in the last year.
POOL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.84% yearly.
Looking at the last year, POOL shows a decrease in Revenue. The Revenue has decreased by -5.47% in the last year.
Measured over the past years, POOL shows a quite strong growth in Revenue. The Revenue has been growing by 13.07% on average per year.
EPS 1Y (TTM)-15.92%
EPS 3Y13.38%
EPS 5Y18.84%
EPS Q2Q%-6.84%
Revenue 1Y (TTM)-5.47%
Revenue growth 3Y12.07%
Revenue growth 5Y13.07%
Sales Q2Q%-2.82%
3.2 Future
POOL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.65% yearly.
Based on estimates for the next years, POOL will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y-14.39%
EPS Next 2Y-4%
EPS Next 3Y1.53%
EPS Next 5Y2.65%
Revenue Next Year-4.96%
Revenue Next 2Y-0.65%
Revenue Next 3Y1.43%
Revenue Next 5Y2.26%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.09, which means the current valuation is very expensive for POOL.
Compared to the rest of the industry, the Price/Earnings ratio of POOL is on the same level as its industry peers.
POOL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
With a Price/Forward Earnings ratio of 28.48, POOL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POOL indicates a somewhat cheap valuation: POOL is cheaper than 64.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 91.29, POOL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 28.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, POOL is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, POOL is valued a bit more expensive than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.6 | ||
| EV/EBITDA | 20.53 |
4.3 Compensation for Growth
The excellent profitability rating of POOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.6
EPS Next 2Y-4%
EPS Next 3Y1.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, POOL has a reasonable but not impressive dividend return.
POOL's Dividend Yield is a higher than the industry average which is at 2.46.
With a Dividend Yield of 1.33, POOL pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of POOL is nicely growing with an annual growth rate of 19.95%!
POOL has paid a dividend for at least 10 years, which is a reliable track record.
POOL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)19.95%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
POOL pays out 39.59% of its income as dividend. This is a sustainable payout ratio.
POOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.59%
EPS Next 2Y-4%
EPS Next 3Y1.53%
POOL CORP
NASDAQ:POOL (1/30/2025, 12:10:40 PM)
349.59
+4.89 (+1.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners105.67%
Inst Owner Change-0.22%
Ins Owners2.94%
Ins Owner Change-0.12%
Market Cap13.31B
Analysts73.68
Price Target389.62 (11.45%)
Short Float %7.9%
Short Ratio8.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend4.32
Dividend Growth(5Y)19.95%
DP39.59%
Div Incr Years14
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.86%
Min EPS beat(2)-0.25%
Max EPS beat(2)1.97%
EPS beat(4)3
Avg EPS beat(4)2.43%
Min EPS beat(4)-0.25%
Max EPS beat(4)4.84%
EPS beat(8)3
Avg EPS beat(8)-3.49%
EPS beat(12)6
Avg EPS beat(12)3.58%
EPS beat(16)10
Avg EPS beat(16)16.61%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)0.13%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)0.13%
Revenue beat(8)1
Avg Revenue beat(8)-3.19%
Revenue beat(12)3
Avg Revenue beat(12)-1.42%
Revenue beat(16)7
Avg Revenue beat(16)1.77%
PT rev (1m)0%
PT rev (3m)3.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 28.48 | ||
| P/S | 2.5 | ||
| P/FCF | 23.6 | ||
| P/OCF | 21.23 | ||
| P/B | 9.29 | ||
| P/tB | 30.26 | ||
| EV/EBITDA | 20.53 |
EPS(TTM)11.62
EY3.32%
EPS(NY)12.28
Fwd EY3.51%
FCF(TTM)14.81
FCFY4.24%
OCF(TTM)16.47
OCFY4.71%
SpS139.95
BVpS37.64
TBVpS11.55
PEG (NY)N/A
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.25% | ||
| ROE | 31.14% | ||
| ROCE | 24.08% | ||
| ROIC | 18.3% | ||
| ROICexc | 18.95% | ||
| ROICexgc | 31.05% | ||
| OM | 11.94% | ||
| PM (TTM) | 8.38% | ||
| GM | 29.64% | ||
| FCFM | 10.58% |
ROA(3y)18.73%
ROA(5y)18.98%
ROE(3y)53.54%
ROE(5y)56.35%
ROIC(3y)24.57%
ROIC(5y)25.18%
ROICexc(3y)24.98%
ROICexc(5y)25.71%
ROICexgc(3y)40.34%
ROICexgc(5y)37.79%
ROCE(3y)32.34%
ROCE(5y)33.15%
ROICexcg growth 3Y-2.12%
ROICexcg growth 5Y1.42%
ROICexc growth 3Y-9.22%
ROICexc growth 5Y-3.35%
OM growth 3Y4.04%
OM growth 5Y5.17%
PM growth 3Y0.27%
PM growth 5Y3.73%
GM growth 3Y1.41%
GM growth 5Y0.63%
F-Score5
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 144.27% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.24% | ||
| Profit Quality | 126.38% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 6.97 |
F-Score5
WACC12.21%
ROIC/WACC1.5
Cap/Depr(3y)129.06%
Cap/Depr(5y)115%
Cap/Sales(3y)0.83%
Cap/Sales(5y)0.82%
Profit Quality(3y)86.93%
Profit Quality(5y)92.95%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.92%
EPS 3Y13.38%
EPS 5Y18.84%
EPS Q2Q%-6.84%
EPS Next Y-14.39%
EPS Next 2Y-4%
EPS Next 3Y1.53%
EPS Next 5Y2.65%
Revenue 1Y (TTM)-5.47%
Revenue growth 3Y12.07%
Revenue growth 5Y13.07%
Sales Q2Q%-2.82%
Revenue Next Year-4.96%
Revenue Next 2Y-0.65%
Revenue Next 3Y1.43%
Revenue Next 5Y2.26%
EBIT growth 1Y-17.96%
EBIT growth 3Y16.6%
EBIT growth 5Y18.92%
EBIT Next Year-10.64%
EBIT Next 3Y1.41%
EBIT Next 5YN/A
FCF growth 1Y155.81%
FCF growth 3Y30.12%
FCF growth 5Y56.9%
OCF growth 1Y139.35%
OCF growth 3Y30.73%
OCF growth 5Y49.56%