POOL CORP (POOL)
US73278L1052 - Common Stock
POOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 15 industry peers in the Distributors industry. Both the health and profitability get an excellent rating, making POOL a very profitable company, without any liquidiy or solvency issues. 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.
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
Looking at the Return On Assets, with a value of 13.25%, POOL belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
The Return On Equity of POOL (31.14%) is better than 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.30%, POOL belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
POOL had an Average Return On Invested Capital over the past 3 years of 24.57%. This is significantly above the industry average of 13.52%.
The last Return On Invested Capital (18.30%) for POOL is well below the 3 year average (24.57%), which needs to be investigated, but indicates that POOL had better years and this may not be a problem.
| 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 Profit Margin of 8.38%. This is in the better half of the industry: POOL outperforms 76.92% of its industry peers.
POOL's Profit Margin has improved in the last couple of years.
POOL has a Operating Margin of 11.94%. This is in the better half of the industry: POOL outperforms 76.92% of its industry peers.
In the last couple of years the Operating Margin of POOL has grown nicely.
With a decent Gross Margin value of 29.64%, POOL is doing good in the industry, outperforming 61.54% of the companies in the same industry.
POOL's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), POOL is creating value.
The number of shares outstanding for POOL has been reduced compared to 1 year ago.
Compared to 5 years ago, POOL has less shares outstanding
POOL has a better debt/assets ratio than last year.
2.2 Solvency
POOL has an Altman-Z score of 7.20. This indicates that POOL is financially healthy and has little risk of bankruptcy at the moment.
POOL's Altman-Z score of 7.20 is amongst the best of the industry. POOL outperforms 84.62% 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.
POOL has a better Debt to FCF ratio (1.64) than 61.54% of its industry peers.
POOL has a Debt/Equity ratio of 0.61. This is a neutral value indicating POOL is somewhat dependend on debt financing.
POOL's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. POOL outperforms 53.85% of its industry peers.
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 | 7.2 |
ROIC/WACC1.5
WACC12.2%
2.3 Liquidity
POOL has a Current Ratio of 2.39. This indicates that POOL is financially healthy and has no problem in meeting its short term obligations.
POOL has a Current ratio of 2.39. This is in the better half of the industry: POOL outperforms 69.23% of its industry peers.
A Quick Ratio of 0.77 indicates that POOL may have some problems paying its short term obligations.
POOL has a Quick ratio (0.77) which is comparable to the rest of the 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.
POOL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.84% yearly.
The Revenue has decreased by -5.47% in the past year.
The Revenue has been growing by 13.07% on average over the past years. This is quite good.
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
Based on estimates for the next years, POOL will show a small growth in Earnings Per Share. The EPS will grow by 1.53% on average per year.
POOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.45% yearly.
EPS Next Y-14.39%
EPS Next 2Y-4%
EPS Next 3Y1.53%
EPS Next 5YN/A
Revenue Next Year-4.96%
Revenue Next 2Y-0.63%
Revenue Next 3Y1.45%
Revenue Next 5YN/A
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
POOL is valuated quite expensively with a Price/Earnings ratio of 31.54.
POOL's Price/Earnings ratio is in line with the industry average.
POOL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.20, which is the current average of the S&P500 Index.
POOL is valuated quite expensively with a Price/Forward Earnings ratio of 29.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POOL is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, POOL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.54 | ||
| Fwd PE | 29.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of POOL indicates a slightly more expensive valuation: POOL is more expensive than 61.54% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, POOL is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.74 | ||
| EV/EBITDA | 21.63 |
4.3 Compensation for Growth
POOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.67
EPS Next 2Y-4%
EPS Next 3Y1.53%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.34%.
POOL's Dividend Yield is a higher than the industry average which is at 9.28.
POOL's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 Years13
Div Non Decr Years19
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 (11/22/2024, 8:00:00 PM)
After market: 366.49 0 (0%)366.49
+2.13 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.54 | ||
| Fwd PE | 29.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.25% | ||
| ROE | 31.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.94% | ||
| PM (TTM) | 8.38% | ||
| GM | 29.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.39 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-15.92%
EPS 3Y13.38%
EPS 5Y
EPS Q2Q%
EPS Next Y-14.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.47%
Revenue growth 3Y12.07%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y