258.49 USD
+6.21 (+2.46%)
258.46 USD
-0.03 (-0.01%)
We assign a fundamental rating of 6 out of 10 to POOL. POOL was compared to 21 industry peers in the Distributors industry. While POOL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. POOL does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year POOL was profitable.
In the past year POOL had a positive cash flow from operations.
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 11.71%, POOL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
With an excellent Return On Equity value of 29.72%, POOL belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.15%, POOL belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for POOL is significantly above the industry average of 15.42%.
The last Return On Invested Capital (16.15%) 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 | 11.71% | ||
| ROE | 29.72% | ||
| ROIC | 16.15% |
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 80.95% of the companies in the same industry.
POOL's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 11.12%, POOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
POOL's Operating Margin has improved in the last couple of years.
POOL has a Gross Margin of 29.59%. This is amongst the best in the industry. POOL outperforms 80.95% 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 | 11.12% | ||
| PM (TTM) | 7.75% | ||
| GM | 29.6% |
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.
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.
Compared to 1 year ago, POOL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.40 indicates that POOL is not in any danger for bankruptcy at the moment.
POOL's Altman-Z score of 5.40 is fine compared to the rest of the industry. POOL outperforms 66.67% of its industry peers.
POOL has a debt to FCF ratio of 2.69. This is a good value and a sign of high solvency as POOL would need 2.69 years to pay back of all of its debts.
POOL's Debt to FCF ratio of 2.69 is fine compared to the rest of the industry. POOL outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that POOL is somewhat dependend on debt financing.
The Debt to Equity ratio of POOL (0.76) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 5.4 |
ROIC/WACC1.64
WACC9.84%
2.3 Liquidity
POOL has a Current Ratio of 2.57. This indicates that POOL is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.57, POOL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
POOL has a Quick Ratio of 2.57. This is a bad value and indicates that POOL is not financially healthy enough and could expect problems in meeting its short term obligations.
POOL has a Quick ratio (0.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for POOL have decreased by -5.68% in the last year.
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 -0.60%.
The Revenue has been growing by 10.67% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.68%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%3.67%
Revenue 1Y (TTM)-0.6%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%1.27%
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 4.68% on average per year.
Based on estimates for the next years, POOL will show a small growth in Revenue. The Revenue will grow by 3.11% on average per year.
EPS Next Y-1.14%
EPS Next 2Y2.57%
EPS Next 3Y5.1%
EPS Next 5Y4.68%
Revenue Next Year0.39%
Revenue Next 2Y1.96%
Revenue Next 3Y2.84%
Revenue Next 5Y3.11%
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
A Price/Earnings ratio of 23.58 indicates a rather expensive valuation of POOL.
Based on the Price/Earnings ratio, POOL is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
POOL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.78, POOL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, POOL is valued a bit cheaper than 71.43% of the companies in the same industry.
POOL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.58 | ||
| Fwd PE | 21.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of POOL is on the same level as its industry peers.
POOL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.4 | ||
| EV/EBITDA | 16.19 |
4.3 Compensation for Growth
The excellent profitability rating of POOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.97
EPS Next 2Y2.57%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 2.06%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.98, POOL pays a better dividend. On top of this POOL pays more dividend than 80.95% of the companies listed in the same industry.
POOL's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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
POOL pays out 44.90% of its income as dividend. 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 2Y2.57%
EPS Next 3Y5.1%
258.49
+6.21 (+2.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners96.18%
Inst Owner Change0.09%
Ins Owners3.12%
Ins Owner Change-1.01%
Market Cap9.63B
Revenue(TTM)5.29B
Net Income(TTM)410.08M
Analysts71.82
Price Target331.41 (28.21%)
Short Float %8.61%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Yearly Dividend4.72
Dividend Growth(5Y)17.54%
DP44.9%
Div Incr Years14
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.07%
Min EPS beat(2)-1.81%
Max EPS beat(2)-0.32%
EPS beat(4)1
Avg EPS beat(4)-0.48%
Min EPS beat(4)-6.57%
Max EPS beat(4)6.79%
EPS beat(8)4
Avg EPS beat(8)0.98%
EPS beat(12)4
Avg EPS beat(12)-2.49%
EPS beat(16)7
Avg EPS beat(16)2.57%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-2.08%
Max Revenue beat(2)-1.79%
Revenue beat(4)1
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-4.41%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.77%
Revenue beat(12)2
Avg Revenue beat(12)-2.77%
Revenue beat(16)4
Avg Revenue beat(16)-1.55%
PT rev (1m)-1.39%
PT rev (3m)-2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.58 | ||
| Fwd PE | 21.78 | ||
| P/S | 1.82 | ||
| P/FCF | 24.4 | ||
| P/OCF | 21.1 | ||
| P/B | 6.98 | ||
| P/tB | 24.74 | ||
| EV/EBITDA | 16.19 |
EPS(TTM)10.96
EY4.24%
EPS(NY)11.87
Fwd EY4.59%
FCF(TTM)10.6
FCFY4.1%
OCF(TTM)12.25
OCFY4.74%
SpS142.14
BVpS37.04
TBVpS10.45
PEG (NY)N/A
PEG (5Y)1.97
Graham Number95.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.71% | ||
| ROE | 29.72% | ||
| ROCE | 21.17% | ||
| ROIC | 16.15% | ||
| ROICexc | 16.93% | ||
| ROICexgc | 27.03% | ||
| OM | 11.12% | ||
| PM (TTM) | 7.75% | ||
| GM | 29.6% | ||
| FCFM | 7.45% |
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%
ROICexgc growth 3Y-9.32%
ROICexgc 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 Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.69 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 125.42% | ||
| Cap/Sales | 1.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.52% | ||
| Profit Quality | 96.24% | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 5.4 |
F-Score5
WACC9.84%
ROIC/WACC1.64
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)-5.68%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%3.67%
EPS Next Y-1.14%
EPS Next 2Y2.57%
EPS Next 3Y5.1%
EPS Next 5Y4.68%
Revenue 1Y (TTM)-0.6%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%1.27%
Revenue Next Year0.39%
Revenue Next 2Y1.96%
Revenue Next 3Y2.84%
Revenue Next 5Y3.11%
EBIT growth 1Y-7.4%
EBIT growth 3Y-9.41%
EBIT growth 5Y12.59%
EBIT Next Year6.66%
EBIT Next 3Y6.6%
EBIT Next 5Y6.3%
FCF growth 1Y-54.57%
FCF growth 3Y29.55%
FCF growth 5Y17.71%
OCF growth 1Y-50.8%
OCF growth 3Y28.11%
OCF growth 5Y17.15%
POOL CORP / POOL FAQ
Can you provide the ChartMill fundamental rating for POOL CORP?
ChartMill assigns a fundamental rating of 6 / 10 to POOL.
What is the valuation status of POOL CORP (POOL) stock?
ChartMill assigns a valuation rating of 3 / 10 to POOL CORP (POOL). This can be considered as Overvalued.
What is the profitability of POOL stock?
POOL CORP (POOL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for POOL stock?
The Price/Earnings (PE) ratio for POOL CORP (POOL) is 23.58 and the Price/Book (PB) ratio is 6.98.
What is the earnings growth outlook for POOL CORP?
The Earnings per Share (EPS) of POOL CORP (POOL) is expected to decline by -1.14% in the next year.