NasdaqGS:POOL

Stock Analysis Report

Executive Summary

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in North America, Europe, South America, and Australia.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


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


Market Performance


7 Day Return

-4.4%

NasdaqGS:POOL

4.1%

US Retail Distributors

1.1%

US Market


1 Year Return

7.8%

NasdaqGS:POOL

1.4%

US Retail Distributors

2.1%

US Market

POOL outperformed the Retail Distributors industry which returned 1.6% over the past year.

POOL outperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

POOLIndustryMarket
7 Day-4.4%4.1%1.1%
30 Day-4.4%7.3%3.7%
90 Day-0.5%0.02%2.3%
1 Year9.1%7.8%3.0%1.4%4.4%2.1%
3 Year105.4%98.2%-2.2%-6.0%47.0%37.4%
5 Year257.0%235.3%41.1%30.4%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

29.74x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Pool's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Pool's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Pool is overvalued based on earnings compared to the US Retail Distributors industry average.

Pool is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Pool is poor value based on expected growth next year.


Price Based on Value of Assets

Pool is overvalued based on assets compared to the US Retail Distributors industry average.


Next Steps

Future Growth

How is Pool expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pool's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).

Pool's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).

Pool's revenue growth is positive but not above the United States of America market average.

Pool's earnings growth is positive but not above the United States of America market average.

Pool's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Pool is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Pool performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pool's year on year earnings growth rate has been positive over the past 5 years.

Pool's 1-year earnings growth is less than its 5-year average (12.2% vs 18.6%)

Pool's earnings growth has not exceeded the US Retail Distributors industry average in the past year (12.2% vs 12.2%).


Return on Equity

Whilst Pool made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Pool used its assets more efficiently than the US Retail Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Pool's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Pool's financial position?


Financial Position Analysis

Pool is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Pool's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Pool's level of debt (202%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (159.6% vs 202% today).

Debt is well covered by operating cash flow (36.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 13.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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

1.32%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Pool's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Pool's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of Pool's salary, the management and board of directors tenure and is there insider trading?

11.3yrs

Average management tenure


CEO

Pete Arvan (53yo)

0.7yrs

Tenure

US$2,555,988

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

Pete's remuneration is lower than average for companies of similar size in United States of America.

Pete's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.3yrs

Average Tenure

56.5yo

Average Age

The average tenure for the Pool management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.1yrs

Average Tenure

65yo

Average Age

The tenure for the Pool board of directors is about average.


Insider Trading

Pool individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$1,40023 Aug 19
Mark Joslin
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares7
Max PriceUS$200.00
SellUS$285,80015 Aug 19
Mark Joslin
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares1,429
Max PriceUS$200.00
BuyUS$93,59806 Aug 19
Peter Arvan
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares500
Max PriceUS$187.93
SellUS$1,840,69222 May 19
John Stokely
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Independent Director
Shares10,000
Max PriceUS$185.61
SellUS$1,448,69230 Apr 19
Harlan Seymour
EntityIndividual
Role
Member of the Board of Directors
Director
Shares8,000
Max PriceUS$181.09
SellUS$431,46025 Apr 19
Jennifer Neil
EntityIndividual
Role
Chief Legal Officer
VP, Corporate Secretary & Chief Legal Officer
Shares2,397
Max PriceUS$180.00
SellUS$599,80722 Mar 19
A. Cook
EntityIndividual
Shares3,747
Max PriceUS$160.08
SellUS$1,681,49321 Mar 19
A. Cook
EntityIndividual
Shares10,550
Max PriceUS$160.07

Ownership Breakdown


Management Team

  • Mark Joslin (60yo)

    Senior VP & CFO

    • Tenure: 15.1yrs
    • Compensation: US$1.69m
  • Donald Meyer (63yo)

    Senior Director of Financial Services

    • Tenure: 17.6yrs
  • Jennifer Neil (45yo)

    VP, Corporate Secretary & Chief Legal Officer

    • Tenure: 16.3yrs
    • Compensation: US$1.07m
  • Curt Scheel (60yo)

    Director of Investor Relations

    • Tenure: 0yrs
  • Melanie M. Hart (46yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 11.3yrs
  • Pete Arvan (53yo)

    CEO, President & Director

    • Tenure: 0.7yrs
    • Compensation: US$2.56m
  • Timothy Babco

    Chief Information Officer & GM of Operations

    • Tenure: 4.3yrs
  • Donna Williams

    VP & Chief Marketing Officer

    • Tenure: 4.3yrs

Board Members

  • Andy Code (60yo)

    Director

    • Tenure: 26.7yrs
    • Compensation: US$185.49k
  • Rusty Sexton (83yo)

    Chairman Emeritus

    • Tenure: 2.3yrs
    • Compensation: US$36.00k
  • Manny Perez de la Mesa (62yo)

    Vice Chairman

    • Tenure: 0.7yrs
    • Compensation: US$3.28m
  • Dave Whalen (61yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$192.55k
  • Bob Sledd (66yo)

    Director

    • Tenure: 23.7yrs
    • Compensation: US$195.55k
  • John Stokely (66yo)

    Chairman & Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$241.72k
  • Timothy Graven (67yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$202.55k
  • Harlan Seymour (69yo)

    Director

    • Tenure: 16.7yrs
    • Compensation: US$212.55k
  • Deb Oler (64yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$9.17k
  • Pete Arvan (53yo)

    CEO, President & Director

    • Tenure: 0.7yrs
    • Compensation: US$2.56m

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$7.437b
  • Shares outstanding: 39.92m
  • Website: https://www.poolcorp.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POOLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1995
SP1DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1995
POOL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1995
SP1BRSE (Berne Stock Exchange)YesCommon StockCHUSDOct 1995

Biography

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in North America, Europe, South America, and Australia. The company offers maintenance products, including chemi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:53
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.