POOL CORP (POOL) Stock Fundamental Analysis
NASDAQ:POOL - Nasdaq - US73278L1052 - Common Stock - Currency: USD
POOL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 15 industry peers in the Distributors industry. While POOL has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, POOL is valued expensive at the moment.
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.
Each year in the past 5 years POOL had a positive operating cash flow.
1.2 Ratios
POOL has a Return On Assets of 12.83%. This is amongst the best in the industry. POOL outperforms 92.86% of its industry peers.
POOL's Return On Equity of 33.94% is amongst the best of the industry. POOL outperforms 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.66%, POOL belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
POOL had an Average Return On Invested Capital over the past 3 years of 22.40%. This is above the industry average of 18.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | 33.94% | ||
| ROIC | 18.66% |
ROA(3y)16.32%
ROA(5y)18.03%
ROE(3y)44.67%
ROE(5y)50.41%
ROIC(3y)22.4%
ROIC(5y)24.25%
1.3 Margins
POOL has a Profit Margin of 8.14%. This is in the better half of the industry: POOL outperforms 78.57% of its industry peers.
POOL's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 11.62%, POOL is doing good in 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.
POOL has a Gross Margin of 29.66%. This is in the better half of the industry: POOL outperforms 64.29% of its industry peers.
POOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.62% | ||
| PM (TTM) | 8.14% | ||
| GM | 29.66% |
OM growth 3Y-9.5%
OM growth 5Y1.73%
PM growth 3Y-12.69%
PM growth 5Y0%
GM growth 3Y-0.96%
GM growth 5Y0.52%
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.
Compared to 5 years ago, POOL has less shares outstanding
POOL has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of POOL is 1.58, which is an excellent value as it means it would take POOL, only 1.58 years of fcf income to pay off all of its debts.
POOL has a Debt to FCF ratio of 1.58. This is in the better half of the industry: POOL outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that POOL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, POOL perfoms like the industry average, outperforming 42.86% 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 | 0.71 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | N/A |
ROIC/WACC1.66
WACC11.26%
2.3 Liquidity
POOL has a Current Ratio of 2.05. This indicates that POOL is financially healthy and has no problem in meeting its short term obligations.
POOL has a Current ratio (2.05) which is comparable to the rest of the industry.
A Quick Ratio of 0.52 indicates that POOL may have some problems paying its short term obligations.
The Quick ratio of POOL (0.52) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for POOL have decreased strongly by -15.32% in the last year.
The Earnings Per Share has been growing by 11.97% on average over the past years. This is quite good.
POOL shows a decrease in Revenue. In the last year, the revenue decreased by -4.16%.
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)-15.32%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%-25.76%
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%-1.55%
3.2 Future
POOL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.45% yearly.
POOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.75% yearly.
EPS Next Y7.81%
EPS Next 2Y10.42%
EPS Next 3Y9.45%
EPS Next 5YN/A
Revenue Next Year3.52%
Revenue Next 2Y4.48%
Revenue Next 3Y4.75%
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
A Price/Earnings ratio of 30.51 indicates a quite expensive valuation of POOL.
Compared to the rest of the industry, the Price/Earnings ratio of POOL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.98, POOL is valued at the same level.
Based on the Price/Forward Earnings ratio of 28.30, the valuation of POOL can be described as expensive.
POOL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of POOL to the average of the S&P500 Index (22.66), we can say POOL is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.51 | ||
| Fwd PE | 28.3 |
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 64.29% of the companies listed in the same industry.
POOL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.84 | ||
| EV/EBITDA | 21.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
POOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.91
PEG (5Y)2.55
EPS Next 2Y10.42%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.40%.
Compared to an average industry Dividend Yield of 2.63, POOL pays a bit more dividend than its industry peers.
POOL's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
On average, the dividend of POOL grows each year by 17.43%, which is quite nice.
POOL has been paying a dividend for at least 10 years, so it has a reliable track record.
POOL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.43%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
41.56% 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.
DP41.56%
EPS Next 2Y10.42%
EPS Next 3Y9.45%
344.18
-2.82 (-0.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners100.42%
Inst Owner Change1.44%
Ins Owners2.95%
Ins Owner Change4.86%
Market Cap13.10B
Analysts73.68
Price Target383.46 (11.41%)
Short Float %7.18%
Short Ratio7.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend4.7
Dividend Growth(5Y)17.43%
DP41.56%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.38%
Min EPS beat(2)1.97%
Max EPS beat(2)6.79%
EPS beat(4)3
Avg EPS beat(4)3.34%
Min EPS beat(4)-0.25%
Max EPS beat(4)6.79%
EPS beat(8)4
Avg EPS beat(8)-1.37%
EPS beat(12)6
Avg EPS beat(12)1.02%
EPS beat(16)10
Avg EPS beat(16)11.65%
Revenue beat(2)2
Avg Revenue beat(2)0.33%
Min Revenue beat(2)0.13%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-2.36%
Revenue beat(12)3
Avg Revenue beat(12)-1.87%
Revenue beat(16)7
Avg Revenue beat(16)0.72%
PT rev (1m)-0.24%
PT rev (3m)-1.58%
EPS NQ rev (1m)-15.68%
EPS NQ rev (3m)-15.51%
EPS NY rev (1m)-0.98%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-3.25%
Revenue NQ rev (3m)-3.58%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.51 | ||
| Fwd PE | 28.3 | ||
| P/S | 2.47 | ||
| P/FCF | 21.84 | ||
| P/OCF | 19.87 | ||
| P/B | 10.29 | ||
| P/tB | 46.15 | ||
| EV/EBITDA | 21.25 |
EPS(TTM)11.28
EY3.28%
EPS(NY)12.16
Fwd EY3.53%
FCF(TTM)15.76
FCFY4.58%
OCF(TTM)17.32
OCFY5.03%
SpS139.54
BVpS33.46
TBVpS7.46
PEG (NY)3.91
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | 33.94% | ||
| ROCE | 24.45% | ||
| ROIC | 18.66% | ||
| ROICexc | 19.25% | ||
| ROICexgc | 32.33% | ||
| OM | 11.62% | ||
| PM (TTM) | 8.14% | ||
| GM | 29.66% | ||
| FCFM | 11.29% |
ROA(3y)16.32%
ROA(5y)18.03%
ROE(3y)44.67%
ROE(5y)50.41%
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-12.69%
PM growth 5Y0%
GM growth 3Y-0.96%
GM growth 5Y0.52%
F-Score5
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 1.58 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 130.77% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.47% | ||
| Profit Quality | 138.74% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score5
WACC11.26%
ROIC/WACC1.66
Cap/Depr(3y)130.76%
Cap/Depr(5y)118.35%
Cap/Sales(3y)0.97%
Cap/Sales(5y)0.83%
Profit Quality(3y)118.83%
Profit Quality(5y)100.28%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.32%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%-25.76%
EPS Next Y7.81%
EPS Next 2Y10.42%
EPS Next 3Y9.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%-1.55%
Revenue Next Year3.52%
Revenue Next 2Y4.48%
Revenue Next 3Y4.75%
Revenue Next 5YN/A
EBIT growth 1Y-17.32%
EBIT growth 3Y-9.41%
EBIT growth 5Y12.59%
EBIT Next Year15.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-27.58%
FCF growth 3Y29.55%
FCF growth 5Y17.71%
OCF growth 1Y-25.79%
OCF growth 3Y28.11%
OCF growth 5Y17.15%