POOL CORP (POOL) Stock Fundamental Analysis
USA - NASDAQ:POOL - US73278L1052 - Common Stock
242.32 USD
-3.61 (-1.47%)
242.32 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to POOL. POOL was compared to 23 industry peers in the Distributors industry. POOL has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
POOL had positive earnings in each of the past 5 years.
POOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of POOL (11.71%) is better than 82.61% of its industry peers.
With an excellent Return On Equity value of 29.72%, POOL belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
POOL has a Return On Invested Capital of 16.15%. This is amongst the best in the industry. POOL outperforms 91.30% of its industry peers.
POOL had an Average Return On Invested Capital over the past 3 years of 22.40%. This is significantly above the industry average of 14.04%.
The 3 year average ROIC (22.40%) for POOL is well above the current ROIC(16.15%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of POOL (7.75%) is better than 82.61% of its industry peers.
POOL's Profit Margin has been stable in the last couple of years.
The Operating Margin of POOL (11.12%) is better than 100.00% of its industry peers.
POOL's Operating Margin has improved in the last couple of years.
The Gross Margin of POOL (29.59%) is better than 73.91% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so POOL is creating value.
Compared to 1 year ago, POOL has less shares outstanding
POOL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for POOL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.34 indicates that POOL is not in any danger for bankruptcy at the moment.
POOL has a Altman-Z score of 5.34. This is in the better half of the industry: POOL outperforms 60.87% 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.
Looking at the Debt to FCF ratio, with a value of 2.69, POOL is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
POOL has a Debt/Equity ratio of 0.76. This is a neutral value indicating POOL is somewhat dependend on debt financing.
The Debt to Equity ratio of POOL (0.76) is worse than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 5.34 |
ROIC/WACC1.73
WACC9.33%
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.
Looking at the Current ratio, with a value of 2.57, POOL is in the better half of the industry, outperforming 69.57% 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 of 0.87. This is comparable to the rest of the industry: POOL outperforms 47.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
POOL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.68%.
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 -0.60% in the past year.
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
POOL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.68% yearly.
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-1.2%
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
With a Price/Earnings ratio of 22.11, POOL is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of POOL indicates a somewhat cheap valuation: POOL is cheaper than 65.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of POOL to the average of the S&P500 Index (25.89), we can say POOL is valued inline with the index average.
The Price/Forward Earnings ratio is 20.42, which indicates a rather expensive current valuation of POOL.
73.91% of the companies in the same industry are more expensive than POOL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of POOL to the average of the S&P500 Index (34.59), we can say POOL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 20.42 |
4.2 Price Multiples
POOL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, POOL is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.91 | ||
| EV/EBITDA | 15.85 |
4.3 Compensation for Growth
POOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.85
EPS Next 2Y2.57%
EPS Next 3Y5.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, POOL has a reasonable but not impressive dividend return.
The stock price of POOL dropped by -24.69% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.42, POOL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, POOL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
The dividend of POOL is nicely growing with an annual growth rate of 17.54%!
POOL has paid a dividend for at least 10 years, which is 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
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%
242.32
-3.61 (-1.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners103.05%
Inst Owner Change-4.3%
Ins Owners3.11%
Ins Owner Change0.01%
Market Cap9.04B
Revenue(TTM)5.29B
Net Income(TTM)410.08M
Analysts70.91
Price Target335.94 (38.63%)
Short Float %9.79%
Short Ratio5.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend4.72
Dividend Growth(5Y)17.54%
DP44.9%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.16%
Min EPS beat(2)-2%
Max EPS beat(2)-0.32%
EPS beat(4)1
Avg EPS beat(4)-0.52%
Min EPS beat(4)-6.57%
Max EPS beat(4)6.79%
EPS beat(8)4
Avg EPS beat(8)0.95%
EPS beat(12)4
Avg EPS beat(12)-2.5%
EPS beat(16)7
Avg EPS beat(16)2.55%
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)-1.1%
PT rev (3m)1.76%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 20.42 | ||
| P/S | 1.71 | ||
| P/FCF | 22.91 | ||
| P/OCF | 19.82 | ||
| P/B | 6.55 | ||
| P/tB | 23.23 | ||
| EV/EBITDA | 15.85 |
EPS(TTM)10.96
EY4.52%
EPS(NY)11.87
Fwd EY4.9%
FCF(TTM)10.58
FCFY4.36%
OCF(TTM)12.23
OCFY5.05%
SpS141.87
BVpS36.97
TBVpS10.43
PEG (NY)N/A
PEG (5Y)1.85
Graham Number95.49
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 | 5.34 |
F-Score5
WACC9.33%
ROIC/WACC1.73
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-1.2%
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 Year7.41%
EBIT Next 3Y6.81%
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.
Can you provide the valuation status for POOL CORP?
ChartMill assigns a valuation rating of 4 / 10 to POOL CORP (POOL). This can be considered as Fairly Valued.
How profitable is POOL CORP (POOL) stock?
POOL CORP (POOL) has a profitability rating of 9 / 10.
What are the PE and PB ratios of POOL CORP (POOL) stock?
The Price/Earnings (PE) ratio for POOL CORP (POOL) is 22.11 and the Price/Book (PB) ratio is 6.55.
Can you provide the financial health for POOL stock?
The financial health rating of POOL CORP (POOL) is 6 / 10.