NasdaqGS:POOL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. More Details


Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Pool's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: POOL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: POOL's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

7.6%

POOL

1.9%

US Retail Distributors

0.6%

US Market


1 Year Return

72.4%

POOL

18.4%

US Retail Distributors

22.7%

US Market

Return vs Industry: POOL exceeded the US Retail Distributors industry which returned 13.3% over the past year.

Return vs Market: POOL exceeded the US Market which returned 21% over the past year.


Shareholder returns

POOLIndustryMarket
7 Day7.6%1.9%0.6%
30 Day0.9%8.4%13.1%
90 Day7.0%5.5%4.5%
1 Year74.0%72.4%20.4%18.4%25.5%22.7%
3 Year185.3%176.4%33.9%28.0%49.0%39.1%
5 Year356.8%331.6%41.7%32.8%98.3%76.5%

Long-Term Price Volatility Vs. Market

How volatile is Pool's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pool undervalued compared to its fair value and its price relative to the market?

43.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: POOL ($353.1) is trading above our estimate of fair value ($148.49)

Significantly Below Fair Value: POOL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: POOL is poor value based on its PE Ratio (43.5x) compared to the US Retail Distributors industry average (33x).

PE vs Market: POOL is poor value based on its PE Ratio (43.5x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: POOL is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: POOL is overvalued based on its PB Ratio (24.1x) compared to the US Retail Distributors industry average (3.3x).


Next Steps

Future Growth

How is Pool forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POOL's forecast earnings growth (10.3% per year) is above the savings rate (2.2%).

Earnings vs Market: POOL's earnings (10.3% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: POOL's earnings are forecast to grow, but not significantly.

Revenue vs Market: POOL's revenue (8.5% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: POOL's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: POOL's Return on Equity is forecast to be very high in 3 years time (57.7%).


Next Steps

Past Performance

How has Pool performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POOL has high quality earnings.

Growing Profit Margin: POOL's current net profit margins (8.8%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: POOL's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: POOL's earnings growth over the past year (25%) exceeds its 5-year average (18.2% per year).

Earnings vs Industry: POOL earnings growth over the past year (25%) underperformed the Retail Distributors industry 30.3%.


Return on Equity

High ROE: POOL's Return on Equity (55.2%) is considered outstanding.


Next Steps

Financial Health

How is Pool's financial position?


Financial Position Analysis

Short Term Liabilities: POOL's short term assets ($1.1B) exceed its short term liabilities ($482.5M).

Long Term Liabilities: POOL's short term assets ($1.1B) exceed its long term liabilities ($515.6M).


Debt to Equity History and Analysis

Debt Level: POOL's debt to equity ratio (60.2%) is considered high.

Reducing Debt: POOL's debt to equity ratio has reduced from 151% to 60.2% over the past 5 years.

Debt Coverage: POOL's debt is well covered by operating cash flow (125.3%).

Interest Coverage: POOL's interest payments on its debt are well covered by EBIT (31.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Pool current dividend yield, its reliability and sustainability?

0.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: POOL's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: POOL's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (4.18%).


Stability and Growth of Payments

Stable Dividend: POOL is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: POOL is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: POOL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of POOL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.5yrs

Average management tenure


CEO

Pete Arvan (54 yo)

1.83yrs

Tenure

US$3,290,220

Compensation

Mr. Peter D. Arvan, also known as Pete, has been a Director of Pool Corporation since July 31, 2019. Mr. Arvan has been the Chief Executive Officer and President at Pool Corporation since December 31, 2018...


CEO Compensation Analysis

Compensation vs Market: Pete's total compensation ($USD3.29M) is below average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Pete's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Arvan
CEO, President & Director1.83yrsUS$3.29m0.13%
$ 17.7m
Mark Joslin
Senior VP & CFO16.25yrsUS$1.59m0.25%
$ 35.5m
Jennifer Neil
VP, Corporate Secretary & Chief Legal Officer17.5yrsUS$937.53k0.036%
$ 5.1m
Kenneth St. Romain
Group Vice President13.33yrsUS$1.63m0.23%
$ 32.1m
David Collier
Vice President of Operations & Supply Chain0.33yrno data0.0037%
$ 524.7k
Melanie M. Hart
VP, Corporate Controller & Chief Accounting Officer12.5yrsno data0.026%
$ 3.6m
Todd Marshall
Chief Information Officer0.67yrno datano data
Curtis Scheel
Director of Investor Relationsno datano datano data
Donna Williams
VP & Chief Marketing Officer5.5yrsno datano data
Jeffrey Clay
President of Horizon Distributors Inc0.67yrno data0.0060%
$ 850.8k
Richard Postoll
VP and GM of South Florida Division & Northeast Division14.83yrsno datano data
Donald Meyer
Senior Director of Financial Services18.75yrsno datano data

12.5yrs

Average Tenure

57yo

Average Age

Experienced Management: POOL's management team is seasoned and experienced (12.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Arvan
CEO, President & Director1.83yrsUS$3.29m0.13%
$ 17.7m
Andrew Code
Independent Director27.83yrsUS$193.04k0.017%
$ 2.4m
Wilson Sexton
Chairman Emeritus3.5yrsUS$36.00kno data
Manuel Perez de la Mesa
Vice Chairman1.83yrsUS$3.28m2.28%
$ 323.3m
David Whalen
Independent Director5.08yrsUS$200.04k0.014%
$ 2.0m
Robert Sledd
Independent Director24.83yrsUS$203.04k0.036%
$ 5.1m
John Stokely
Non-Executive Chairman & Lead Independent Director3.5yrsUS$260.04k0.032%
$ 4.5m
Timothy Graven
Independent Director5.08yrsUS$210.04k0.014%
$ 1.9m
Harlan Seymour
Independent Director17.83yrsUS$220.04k0.025%
$ 3.6m
Debra Oler
Independent Director2.08yrsUS$196.04k0.0030%
$ 428.2k

4.3yrs

Average Tenure

66yo

Average Age

Experienced Board: POOL's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: POOL insiders have only sold shares 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pool Corporation
  • Ticker: POOL
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: US$14.180b
  • Shares outstanding: 40.16m
  • Website: https://www.poolcorp.com

Number of Employees


Location

  • Pool Corporation
  • 109 Northpark Boulevard
  • Covington
  • Louisiana
  • 70433-5001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POOLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1995
SP1DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1995

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 23:42
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.