POOL CORP (POOL) Stock Fundamental Analysis
NASDAQ:POOL - Nasdaq - US73278L1052 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to POOL. POOL was compared to 19 industry peers in the Distributors industry. POOL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. POOL is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years POOL has been profitable.
POOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
POOL has a better Return On Assets (10.96%) than 84.21% of its industry peers.
Looking at the Return On Equity, with a value of 32.85%, POOL belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
POOL has a better Return On Invested Capital (17.49%) than 89.47% of its industry peers.
POOL had an Average Return On Invested Capital over the past 3 years of 22.40%. This is above the industry average of 18.59%.
The 3 year average ROIC (22.40%) for POOL is well above the current ROIC(17.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 32.85% | ||
| ROIC | 17.49% |
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
Looking at the Profit Margin, with a value of 7.73%, POOL belongs to the top of the industry, outperforming 84.21% 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.
With an excellent Operating Margin value of 11.14%, POOL belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
In the last couple of years the Operating Margin of POOL has grown nicely.
Looking at the Gross Margin, with a value of 29.44%, POOL is in the better half of the industry, outperforming 63.16% 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 | 11.14% | ||
| PM (TTM) | 7.73% | ||
| GM | 29.44% |
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
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.
Compared to 1 year ago, POOL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.13 indicates that POOL is not in any danger for bankruptcy at the moment.
POOL has a Altman-Z score (5.13) which is comparable to the rest of the industry.
The Debt to FCF ratio of POOL is 2.11, which is a good value as it means it would take POOL, 2.11 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.11, POOL belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
POOL has a Debt/Equity ratio of 0.78. This is a neutral value indicating POOL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, POOL is in line with its industry, outperforming 42.11% 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 | 0.78 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 5.13 |
ROIC/WACC2.06
WACC8.51%
2.3 Liquidity
POOL has a Current Ratio of 1.79. This is a normal value and indicates that POOL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.79, POOL perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
POOL has a Quick Ratio of 1.79. This is a bad value and indicates that POOL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.53, POOL is doing worse than 73.68% of the companies in the same industry.
The current and quick ratio evaluation for POOL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
POOL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.59%.
The Earnings Per Share has been growing by 11.97% on average over the past years. This is quite good.
The Revenue has decreased by -3.56% in the past year.
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)-16.59%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%-30.39%
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%-4.4%
3.2 Future
POOL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.30% yearly.
The Revenue is expected to grow by 3.23% on average over the next years.
EPS Next Y-0.18%
EPS Next 2Y4.24%
EPS Next 3Y6.3%
EPS Next 5YN/A
Revenue Next Year0.72%
Revenue Next 2Y2.47%
Revenue Next 3Y3.23%
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 27.34.
POOL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.98. POOL is around the same levels.
A Price/Forward Earnings ratio of 23.78 indicates a rather expensive valuation of POOL.
Based on the Price/Forward Earnings ratio, POOL is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of POOL to the average of the S&P500 Index (21.49), we can say POOL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.34 | ||
| Fwd PE | 23.78 |
4.2 Price Multiples
POOL's Enterprise Value to EBITDA is on the same level as the industry average.
POOL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. POOL is cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.59 | ||
| EV/EBITDA | 18.9 |
4.3 Compensation for Growth
POOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.28
EPS Next 2Y4.24%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 2.65, POOL pays a bit more dividend than its industry peers.
POOL's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of POOL grows each year by 17.54%, 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)17.54%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
44.86% 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.
DP44.86%
EPS Next 2Y4.24%
EPS Next 3Y6.3%
291.48
-1.28 (-0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners101.04%
Inst Owner Change0.83%
Ins Owners3.11%
Ins Owner Change-6.71%
Market Cap10.96B
Analysts74
Price Target328.43 (12.68%)
Short Float %9.72%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend4.72
Dividend Growth(5Y)17.54%
DP44.86%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.11%
Min EPS beat(2)-6.57%
Max EPS beat(2)6.79%
EPS beat(4)2
Avg EPS beat(4)0.49%
Min EPS beat(4)-6.57%
Max EPS beat(4)6.79%
EPS beat(8)4
Avg EPS beat(8)0.45%
EPS beat(12)5
Avg EPS beat(12)-2.17%
EPS beat(16)9
Avg EPS beat(16)4.51%
Revenue beat(2)1
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-4.41%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-4.41%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.87%
Revenue beat(12)2
Avg Revenue beat(12)-2.99%
Revenue beat(16)6
Avg Revenue beat(16)-1.2%
PT rev (1m)0.02%
PT rev (3m)-12.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.34 | ||
| Fwd PE | 23.78 | ||
| P/S | 2.08 | ||
| P/FCF | 22.59 | ||
| P/OCF | 20.26 | ||
| P/B | 8.85 | ||
| P/tB | 43.72 | ||
| EV/EBITDA | 18.9 |
EPS(TTM)10.66
EY3.66%
EPS(NY)12.26
Fwd EY4.21%
FCF(TTM)12.91
FCFY4.43%
OCF(TTM)14.39
OCFY4.94%
SpS139.94
BVpS32.94
TBVpS6.67
PEG (NY)N/A
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 32.85% | ||
| ROCE | 22.94% | ||
| ROIC | 17.49% | ||
| ROICexc | 17.99% | ||
| ROICexgc | 29.87% | ||
| OM | 11.14% | ||
| PM (TTM) | 7.73% | ||
| GM | 29.44% | ||
| FCFM | 9.22% |
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-Score4
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.11 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 119.29% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.5% | ||
| Profit Quality | 119.26% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 5.13 |
F-Score4
WACC8.51%
ROIC/WACC2.06
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)-16.59%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%-30.39%
EPS Next Y-0.18%
EPS Next 2Y4.24%
EPS Next 3Y6.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%-4.4%
Revenue Next Year0.72%
Revenue Next 2Y2.47%
Revenue Next 3Y3.23%
Revenue Next 5YN/A
EBIT growth 1Y-17.4%
EBIT growth 3Y-9.41%
EBIT growth 5Y12.59%
EBIT Next Year7.42%
EBIT Next 3Y7.47%
EBIT Next 5YN/A
FCF growth 1Y-34.97%
FCF growth 3Y29.55%
FCF growth 5Y17.71%
OCF growth 1Y-32.06%
OCF growth 3Y28.11%
OCF growth 5Y17.15%