POOL CORP (POOL)
US73278L1052 - Common Stock
We assign a fundamental rating of 6 out of 10 to POOL. POOL was compared to 15 industry peers in the Distributors industry. POOL gets an excellent profitability rating and is at the same time showing great financial health properties. POOL does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
POOL had positive earnings in the past year.
POOL had a positive operating cash flow in the past year.
In the past 5 years POOL has always been profitable.
Each year in the past 5 years POOL had a positive operating cash flow.
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.
With a decent Return On Equity value of 31.14%, POOL is doing good in the industry, outperforming 78.57% of the companies in the same industry.
POOL has a better Return On Invested Capital (18.30%) than 85.71% 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 16.89%.
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's Profit Margin of 8.38% is fine compared to the rest of the industry. POOL outperforms 78.57% of its industry peers.
POOL's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of POOL has grown nicely.
The Gross Margin of POOL (29.64%) is better than 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.
POOL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for POOL has been reduced compared to 5 years ago.
POOL has a better debt/assets ratio than last year.
2.2 Solvency
POOL has an Altman-Z score of 7.01. This indicates that POOL is financially healthy and has little risk of bankruptcy at the moment.
POOL has a Altman-Z score of 7.01. This is amongst the best in the industry. POOL outperforms 85.71% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.64, POOL is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that POOL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.61, POOL perfoms like the industry average, 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 | 7.01 |
ROIC/WACC1.43
WACC12.79%
2.3 Liquidity
A Current Ratio of 2.39 indicates that POOL has no problem at all paying its short term obligations.
POOL has a better Current ratio (2.39) than 71.43% of its industry peers.
A Quick Ratio of 0.77 indicates that POOL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, POOL is in line with its industry, outperforming 50.00% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 18.84% on average over the past years. This is quite good.
POOL shows a decrease in Revenue. In the last year, the revenue decreased by -5.47%.
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
The Earnings Per Share is expected to grow by 2.65% on average over the next years.
The Revenue is expected to grow by 2.26% on average over the next years.
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-0.63%
Revenue Next 3Y1.45%
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.
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
A Price/Earnings ratio of 29.93 indicates a quite expensive valuation of POOL.
The rest of the industry has a similar Price/Earnings ratio as POOL.
POOL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.33, the valuation of POOL can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POOL is on the same level as its industry peers.
POOL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.93 | ||
| Fwd PE | 28.33 |
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 the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.48 | ||
| EV/EBITDA | 20.71 |
4.3 Compensation for Growth
The excellent profitability rating of POOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y-4%
EPS Next 3Y1.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.41%, POOL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.00, POOL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, POOL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
On average, the dividend of POOL grows each year by 19.95%, 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)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.
The dividend of POOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.59%
EPS Next 2Y-4%
EPS Next 3Y1.53%
POOL CORP
NASDAQ:POOL (12/23/2024, 8:26:16 PM)
After market: 347.84 0 (0%)347.84
-1.2 (-0.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners105.67%
Inst Owner Change-1.27%
Ins Owners2.94%
Ins Owner Change-0.12%
Market Cap13.24B
Analysts73.68
Price Target389.62 (12.01%)
Short Float %8.84%
Short Ratio10.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Dividend Growth(5Y)19.95%
DP39.59%
Div Incr Years14
Div Non Decr Years20
Ex-Date
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)3.65%
PT rev (3m)6.38%
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 | 29.93 | ||
| Fwd PE | 28.33 | ||
| P/S | 2.49 | ||
| P/FCF | 23.48 | ||
| P/OCF | 21.12 | ||
| P/B | 9.24 | ||
| P/tB | 30.11 | ||
| EV/EBITDA | 20.71 |
EPS(TTM)11.62
EY3.34%
EPS(NY)12.28
Fwd EY3.53%
FCF(TTM)14.81
FCFY4.26%
OCF(TTM)16.47
OCFY4.73%
SpS139.95
BVpS37.64
TBVpS11.55
PEG (NY)N/A
PEG (5Y)1.59
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 | 7.01 |
F-Score5
WACC12.79%
ROIC/WACC1.43
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-0.63%
Revenue Next 3Y1.45%
Revenue Next 5Y2.26%
EBIT growth 1Y-17.96%
EBIT growth 3Y16.6%
EBIT growth 5Y18.92%
EBIT Next Year-10.43%
EBIT Next 3Y1.49%
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%