Pool (NasdaqGS:POOL) - Share price, News & Analysis

POOL fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	4/6
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.

Rewards

Trading at 5.2% below our estimate of its fair value

Earnings are forecast to grow 5.84% per year

Earnings grew by 67.1% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Pool Competitors

Genuine Parts

NYSE:GPC

US$19.5b

Eaton

NYSE:ETN

US$57.2b

Ashtead Group

LSE:AHT

UK£16.9b

United Rentals

NYSE:URI

US$20.8b

Price History & Performance

Summary of all time highs, changes and price drops for Pool
Historical stock prices
Current Share Price	US$387.31
52 Week High	US$582.27
52 Week Low	US$377.52
Beta	0.87
1 Month Change	-5.65%
3 Month Change	-13.14%
1 Year Change	-9.47%
3 Year Change	111.40%
5 Year Change	225.14%
Change since IPO	41,916.25%

Recent News & Updates

Apr 25

What Is Pool Corporation's (NASDAQ:POOL) Share Price Doing?

Pool Corporation ( NASDAQ:POOL ) received a lot of attention from a substantial price movement on the NASDAQGS over the...

Shareholder Returns

	POOL	US Retail Distributors	US Market
7D	1.5%	1.8%	0.5%
1Y	-9.5%	-4.8%	-11.5%

Return vs Industry: POOL underperformed the US Retail Distributors industry which returned -1.5% over the past year.

Return vs Market: POOL underperformed the US Market which returned -8.1% over the past year.

Price Volatility

Is POOL's price volatile compared to industry and market?
POOL volatility
POOL Average Weekly Movement	6.0%
Retail Distributors Industry Average Movement	7.4%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

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

How do Pool's earnings and revenue compare to its market cap?
POOL fundamental statistics
Market Cap	US$16.22b
Earnings (TTM)	US$725.86m
Revenue (TTM)	US$5.65b

21.4x

P/E Ratio

2.7x

P/S Ratio

Is POOL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
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 comparison

Dividends

0.8%

Current Dividend Yield

18%

Payout Ratio

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

5.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: POOL ($387.31) is trading below our estimate of fair value ($408.63)

Significantly Below Fair Value: POOL is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: POOL is poor value based on its PE Ratio (21.4x) compared to the US Retail Distributors industry average (21x).

PE vs Market: POOL is poor value based on its PE Ratio (21.4x) compared to the US market (16x).

Price to Earnings Growth Ratio

PEG Ratio: POOL is poor value based on its PEG Ratio (3.7x)

Price to Book Ratio

PB vs Industry: POOL is overvalued based on its PB Ratio (13.2x) compared to the US Retail Distributors industry average (2.6x).

Future Growth

How is Pool forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: POOL's forecast earnings growth (5.8% per year) is above the savings rate (1.9%).

Earnings vs Market: POOL's earnings (5.8% per year) are forecast to grow slower than the US market (12.4% per year).

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

Revenue vs Market: POOL's revenue (6.1% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: POOL's revenue (6.1% 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

Past Performance

How has Pool performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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%) exceeded the Retail Distributors industry 64.6%.

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.

Financial Health

How is Pool's financial position?

Financial Health Score

4/6

Financial 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

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.83%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: POOL's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: POOL's dividend (0.83%) is low compared to the top 25% of dividend payers in the US market (3.97%).

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?

3.3yrs

Average management tenure

CEO

Pete Arvan (55 yo)

3.33yrs

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 ($USD5.58M) is below average for companies of similar size in the US market ($USD13.27M).

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 (3.3 years average tenure).

Board Members

Experienced Board: POOL's board of directors are considered experienced (6.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31