POOL CORP (POOL) Stock Fundamental Analysis
USA - NASDAQ:POOL - US73278L1052 - Common Stock
324.78 USD
-1.2 (-0.37%)
324.78 USD
0 (0%)
Taking everything into account, POOL scores 6 out of 10 in our fundamental rating. POOL was compared to 22 industry peers in the Distributors industry. POOL has an excellent profitability rating, but there are some minor concerns on its financial health. POOL has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
POOL had positive earnings in the past year.
In the past year POOL had a positive cash flow from operations.
In the past 5 years POOL has always been profitable.
POOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
POOL has a Return On Assets of 11.13%. This is amongst the best in the industry. POOL outperforms 81.82% of its industry peers.
POOL has a Return On Equity of 31.46%. This is amongst the best in the industry. POOL outperforms 90.91% of its industry peers.
POOL has a better Return On Invested Capital (15.62%) than 86.36% 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 15.24%.
The last Return On Invested Capital (15.62%) for POOL is well below the 3 year average (22.40%), which needs to be investigated, but indicates that POOL had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 31.46% | ||
| ROIC | 15.62% |
ROA(3y)16.3%
ROA(5y)18.02%
ROE(3y)44.61%
ROE(5y)50.38%
ROIC(3y)22.4%
ROIC(5y)24.25%
1.3 Margins
With an excellent Profit Margin value of 7.75%, POOL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of POOL has remained more or less at the same level.
Looking at the Operating Margin, with a value of 11.13%, POOL belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Operating Margin of POOL has grown nicely.
POOL's Gross Margin of 29.46% is fine compared to the rest of the industry. POOL outperforms 68.18% 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 | 11.13% | ||
| PM (TTM) | 7.75% | ||
| GM | 29.46% |
OM growth 3Y-9.5%
OM growth 5Y1.73%
PM growth 3Y-12.84%
PM growth 5Y-0.1%
GM growth 3Y-0.96%
GM growth 5Y0.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), POOL is creating value.
Compared to 1 year ago, POOL has less shares outstanding
POOL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for POOL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.69 indicates that POOL is not in any danger for bankruptcy at the moment.
POOL has a Altman-Z score (5.69) which is in line with its industry peers.
POOL has a debt to FCF ratio of 2.84. This is a good value and a sign of high solvency as POOL would need 2.84 years to pay back of all of its debts.
POOL has a Debt to FCF ratio of 2.84. This is in the better half of the industry: POOL outperforms 72.73% of its industry peers.
POOL has a Debt/Equity ratio of 0.94. This is a neutral value indicating POOL is somewhat dependend on debt financing.
POOL has a worse Debt to Equity ratio (0.94) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 5.69 |
ROIC/WACC1.55
WACC10.06%
2.3 Liquidity
POOL has a Current Ratio of 2.52. This indicates that POOL is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.52, POOL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that POOL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, POOL is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
POOL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.60%.
Measured over the past years, POOL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.97% on average per year.
POOL shows a decrease in Revenue. In the last year, the revenue decreased by -1.71%.
POOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.67% yearly.
EPS 1Y (TTM)-8.6%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%3.61%
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%0.83%
3.2 Future
Based on estimates for the next years, POOL will show a small growth in Earnings Per Share. The EPS will grow by 5.69% on average per year.
POOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.02% yearly.
EPS Next Y-1.29%
EPS Next 2Y3.34%
EPS Next 3Y5.69%
EPS Next 5YN/A
Revenue Next Year0.43%
Revenue Next 2Y2.07%
Revenue Next 3Y3.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.96, the valuation of POOL can be described as expensive.
POOL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. POOL is around the same levels.
POOL is valuated quite expensively with a Price/Forward Earnings ratio of 26.96.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POOL indicates a somewhat cheap valuation: POOL is cheaper than 77.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, POOL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.96 | ||
| Fwd PE | 26.96 |
4.2 Price Multiples
POOL's Enterprise Value to EBITDA ratio is in line with the industry average.
POOL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.95 | ||
| EV/EBITDA | 20.96 |
4.3 Compensation for Growth
The excellent profitability rating of POOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.5
EPS Next 2Y3.34%
EPS Next 3Y5.69%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.98, POOL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, POOL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
On average, the dividend of POOL grows each year by 17.54%, which is quite nice.
POOL has paid a dividend for at least 10 years, which is a reliable track record.
POOL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)17.54%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
44.90% of the earnings are spent on dividend by POOL. This is a bit on the high side, but may be sustainable.
POOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.9%
EPS Next 2Y3.34%
EPS Next 3Y5.69%
324.78
-1.2 (-0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change5.81%
Ins Owners3.11%
Ins Owner Change-12.3%
Market Cap12.12B
Analysts74
Price Target339.82 (4.63%)
Short Float %12.3%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend4.72
Dividend Growth(5Y)17.54%
DP44.9%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.44%
Min EPS beat(2)-6.57%
Max EPS beat(2)-0.32%
EPS beat(4)2
Avg EPS beat(4)0.47%
Min EPS beat(4)-6.57%
Max EPS beat(4)6.79%
EPS beat(8)4
Avg EPS beat(8)1.03%
EPS beat(12)5
Avg EPS beat(12)-2.16%
EPS beat(16)8
Avg EPS beat(16)3.61%
Revenue beat(2)0
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-4.41%
Max Revenue beat(2)-1.79%
Revenue beat(4)2
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-4.41%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.62%
Revenue beat(12)2
Avg Revenue beat(12)-2.67%
Revenue beat(16)5
Avg Revenue beat(16)-1.38%
PT rev (1m)0.25%
PT rev (3m)3.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)-1.16%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.96 | ||
| Fwd PE | 26.96 | ||
| P/S | 2.3 | ||
| P/FCF | 27.95 | ||
| P/OCF | 24.96 | ||
| P/B | 9.33 | ||
| P/tB | 38.87 | ||
| EV/EBITDA | 20.96 |
EPS(TTM)10.84
EY3.34%
EPS(NY)12.05
Fwd EY3.71%
FCF(TTM)11.62
FCFY3.58%
OCF(TTM)13.01
OCFY4.01%
SpS141.38
BVpS34.81
TBVpS8.36
PEG (NY)N/A
PEG (5Y)2.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 31.46% | ||
| ROCE | 20.5% | ||
| ROIC | 15.62% | ||
| ROICexc | 16.09% | ||
| ROICexgc | 24.92% | ||
| OM | 11.13% | ||
| PM (TTM) | 7.75% | ||
| GM | 29.46% | ||
| FCFM | 8.22% |
ROA(3y)16.3%
ROA(5y)18.02%
ROE(3y)44.61%
ROE(5y)50.38%
ROIC(3y)22.4%
ROIC(5y)24.25%
ROICexc(3y)22.92%
ROICexc(5y)24.78%
ROICexgc(3y)36.83%
ROICexgc(5y)38.4%
ROCE(3y)29.36%
ROCE(5y)31.79%
ROICexcg growth 3Y-9.32%
ROICexcg growth 5Y1.46%
ROICexc growth 3Y-9.21%
ROICexc growth 5Y-4.65%
OM growth 3Y-9.5%
OM growth 5Y1.73%
PM growth 3Y-12.84%
PM growth 5Y-0.1%
GM growth 3Y-0.96%
GM growth 5Y0.52%
F-Score5
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.84 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 108.65% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.46% | ||
| Profit Quality | 106.08% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 5.69 |
F-Score5
WACC10.06%
ROIC/WACC1.55
Cap/Depr(3y)130.76%
Cap/Depr(5y)118.35%
Cap/Sales(3y)0.97%
Cap/Sales(5y)0.83%
Profit Quality(3y)119.07%
Profit Quality(5y)100.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.6%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%3.61%
EPS Next Y-1.29%
EPS Next 2Y3.34%
EPS Next 3Y5.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%0.83%
Revenue Next Year0.43%
Revenue Next 2Y2.07%
Revenue Next 3Y3.02%
Revenue Next 5YN/A
EBIT growth 1Y-10.2%
EBIT growth 3Y-9.41%
EBIT growth 5Y12.59%
EBIT Next Year7.41%
EBIT Next 3Y6.81%
EBIT Next 5YN/A
FCF growth 1Y-44.34%
FCF growth 3Y29.55%
FCF growth 5Y17.71%
OCF growth 1Y-41.71%
OCF growth 3Y28.11%
OCF growth 5Y17.15%