| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
POOL Stock Overview
Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally.
Pool Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$356.42 |
| 52 Week High | US$582.27 |
| 52 Week Low | US$324.14 |
| Beta | 0.88 |
| 1 Month Change | -12.21% |
| 3 Month Change | -21.58% |
| 1 Year Change | -21.93% |
| 3 Year Change | 86.28% |
| 5 Year Change | 196.94% |
| Change since IPO | 38,565.24% |
Recent News & Updates
Pool Corporation: A Cautious Hold, Despite Strong Financial Performance
Pool Corporation is the world's largest distributor of swimming pool supplies and equipment. Since 2017, revenue has grown at a 17.4% CAGR, with earnings and cash from operations growing at 36% and 14.5% annualized rates. Valuation multiples have receded significantly, due to the broader stock market drawdown, offering an arguably better entry point.
Here's Why I Think Pool (NASDAQ:POOL) Is An Interesting Stock
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
Is Pool (NASDAQ:POOL) A Risky Investment?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Shareholder Returns
| POOL | US Retail Distributors | US Market | |
|---|---|---|---|
| 7D | 7.1% | 7.1% | 6.3% |
| 1Y | -21.9% | -2.2% | -18.8% |
Return vs Industry: POOL underperformed the US Retail Distributors industry which returned -3.8% over the past year.
Return vs Market: POOL underperformed the US Market which returned -18.4% over the past year.
Price Volatility
| POOL volatility | |
|---|---|
| POOL Average Weekly Movement | 6.5% |
| Retail Distributors Industry Average Movement | 8.5% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: POOL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: POOL's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1993 | 5,500 | Pete Arvan | https://www.poolcorp.com |
Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; pool equipment and components for new pool construction and the remodeling of existing pools; and irrigation and related products consisting of irrigation system components, and professional lawn care equipment and supplies. It also provides building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling; and commercial products, including heaters, safety equipment, and commercial pumps and filters.
Pool Fundamentals Summary
| POOL fundamental statistics | |
|---|---|
| Market Cap | US$14.27b |
| Earnings (TTM) | US$725.86m |
| Revenue (TTM) | US$5.65b |
19.7x
P/E Ratio2.5x
P/S RatioIs POOL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| POOL income statement (TTM) | |
|---|---|
| Revenue | US$5.65b |
| Cost of Revenue | US$3.88b |
| Gross Profit | US$1.76b |
| Other Expenses | US$1.04b |
| Earnings | US$725.86m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 18.14 |
| Gross Margin | 31.22% |
| Net Profit Margin | 12.85% |
| Debt/Equity Ratio | 128.2% |
How did POOL perform over the long term?
See historical performance and comparisonDividends
0.9%
Current Dividend Yield18%
Payout RatioValuation
Is POOL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for POOL?
Other financial metrics that can be useful for relative valuation.
| What is POOL's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$14.27b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.8x |
| Enterprise Value/EBITDA | 16.5x |
| PEG Ratio | 3.4x |
Price to Earnings Ratio vs Peers
How does POOL's PE Ratio compare to its peers?
| POOL PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 38.5x | ||
LKQ LKQ | 13.2x | 1.6% | US$14.4b |
GPC Genuine Parts | 20.9x | 8.0% | US$19.4b |
FHAI Microalliance Group | 96.3x | n/a | US$1.9b |
FNKO Funko | 23.8x | 35.0% | US$1.2b |
POOL Pool | 19.7x | 5.7% | US$14.3b |
Price-To-Earnings vs Peers: POOL is good value based on its Price-To-Earnings Ratio (19.7x) compared to the peer average (38.5x).
Price to Earnings Ratio vs Industry
How does POOL's PE Ratio compare vs other companies in the Global Retail Distributors Industry?
Price-To-Earnings vs Industry: POOL is expensive based on its Price-To-Earnings Ratio (19.7x) compared to the US Retail Distributors industry average (16.3x)
Price to Earnings Ratio vs Fair Ratio
What is POOL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 19.7x |
| Fair PE Ratio | 14.3x |
Price-To-Earnings vs Fair Ratio: POOL is expensive based on its Price-To-Earnings Ratio (19.7x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).
Share Price vs Fair Value
What is the Fair Price of POOL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: POOL ($356.42) is trading below our estimate of fair value ($403.97)
Significantly Below Fair Value: POOL is trading below fair value, but not by a significant amount.
Price to Earnings Growth Ratio
PEG Ratio: POOL is poor value based on its PEG Ratio (3.4x)
Discover undervalued companies
Future Growth
How is Pool forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
5.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: POOL's forecast earnings growth (5.7% per year) is above the savings rate (1.9%).
Earnings vs Market: POOL's earnings (5.7% per year) are forecast to grow slower than the US market (13.9% per year).
High Growth Earnings: POOL's earnings are forecast to grow, but not significantly.
Revenue vs Market: POOL's revenue (5.6% per year) is forecast to grow slower than the US market (8.4% per year).
High Growth Revenue: POOL's revenue (5.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if POOL's Return on Equity is forecast to be high in 3 years time
Discover growth companies
Past Performance
How has Pool performed over the past 5 years?
Past Performance Score
3/6Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
30.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: POOL has a high level of non-cash earnings.
Growing Profit Margin: POOL's current net profit margins (12.9%) are higher than last year (10.1%).
Past Earnings Growth Analysis
Earnings Trend: POOL's earnings have grown significantly by 30% per year over the past 5 years.
Accelerating Growth: POOL's earnings growth over the past year (67.1%) exceeds its 5-year average (30% per year).
Earnings vs Industry: POOL earnings growth over the past year (67.1%) underperformed the Retail Distributors industry 67.1%.
Return on Equity
High ROE: Whilst POOL's Return on Equity (62.27%) is outstanding, this metric is skewed due to their high level of debt.
Discover strong past performing companies
Financial Health
How is Pool's financial position?
Financial Health Score
4/6Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: POOL's short term assets ($2.4B) exceed its short term liabilities ($958.4M).
Long Term Liabilities: POOL's short term assets ($2.4B) exceed its long term liabilities ($1.7B).
Debt to Equity History and Analysis
Debt Level: POOL's net debt to equity ratio (123.6%) is considered high.
Reducing Debt: POOL's debt to equity ratio has reduced from 218.3% to 128.2% over the past 5 years.
Debt Coverage: POOL's debt is not well covered by operating cash flow (1.9%).
Interest Coverage: POOL's interest payments on its debt are well covered by EBIT (85.5x coverage).
Balance Sheet
Discover healthy companies
Dividend
What is Pool current dividend yield, its reliability and sustainability?
Dividend Score
4/6Dividend Score 4/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
0.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: POOL's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: POOL's dividend (0.9%) is low compared to the top 25% of dividend payers in the US market (4.23%).
Stability and Growth of Payments
Stable Dividend: POOL's dividends per share have been stable in the past 10 years.
Growing Dividend: POOL's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (17.5%), POOL's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: POOL is paying a dividend but the company has no free cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Pete Arvan (55 yo)
3.42yrs
Tenure
US$5,575,384
Compensation
Mr. Peter D. Arvan, also known as Pete, has been the Chief Executive Officer and President at Pool Corporation since January 1, 2019 and has been its Director since July 31, 2019. Mr. Arvan served as the C...
CEO Compensation Analysis
Compensation vs Market: Pete's total compensation ($USD5.58M) is below average for companies of similar size in the US market ($USD13.43M).
Compensation vs Earnings: Pete's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: POOL's management team is considered experienced (3.4 years average tenure).
Board Members
Experienced Board: POOL's board of directors are considered experienced (6.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: POOL insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Pool Corporation's employee growth, exchange listings and data sources
Key Information
- Name: Pool Corporation
- Ticker: POOL
- Exchange: NasdaqGS
- Founded: 1993
- Industry: Distributors
- Sector: Retail
- Implied Market Cap: US$14.266b
- Shares outstanding: 40.02m
- Website: https://www.poolcorp.com
Number of Employees
Location
- Pool Corporation
- 109 Northpark Boulevard
- Covington
- Louisiana
- 70433-5001
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/27 00:00 |
| End of Day Share Price | 2022/06/27 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.