company background image
POOL

Pool NasdaqGS:POOL Stock Report

Last Price

US$311.93

Market Cap

US$12.3b

7D

-7.8%

1Y

-31.6%

Updated

26 Sep, 2022

Data

Company Financials +
POOL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends3/6

POOL Stock Overview

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

Pool Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pool
Historical stock prices
Current Share PriceUS$311.93
52 Week HighUS$582.27
52 Week LowUS$308.74
Beta0.88
1 Month Change-11.57%
3 Month Change-11.66%
1 Year Change-31.56%
3 Year Change54.65%
5 Year Change181.47%
Change since IPO33,738.86%

Recent News & Updates

Sep 23
Do Pool's (NASDAQ:POOL) Earnings Warrant Your Attention?

Do Pool's (NASDAQ:POOL) Earnings Warrant Your Attention?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Sep 11
Is Pool (NASDAQ:POOL) Using Too Much Debt?

Is Pool (NASDAQ:POOL) Using Too Much Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Sep 03

RiverPark Advisors - Pool Corp.: Firing On All Cylinders

Summary We bought Pool Corporation during the quarter. POOL strategy is beautifully simple; build a pool and become its customer for life. Pool Corp. has been a growth and profitability powerhouse for years. When the pandemic hit, POOL's business boomed like no other time as the country was locked down in their residences. The most recent earnings release and conference demonstrated that Pool Corporation is still firing upon all cylinders. The following segment was excerpted from this fund letter. Pool Corp. (POOL) Those of you who own a backyard pool already know the Pool Corp. story quite well. (Honey, why is the pool water green?) Those who don’t own a pool, well, we recommend a little rent-seeking on your neighbor’s pool by owning these shares. The Pool Corp. strategy is beautifully simple; build a pool and become its customer for life. Once the major discretionary expenditure of building a pool is made, that high-maintenance asset becomes an annual annuity for your local pool service company. Increasingly, that local pool service company could well be owned by Pool Corp. Those who own older pools know quite well that pool maintenance is much more involved (read: expensive) than just annual chemicals in the early years. Once a pool reaches its early teen years (often sooner), maintenance reaches a very different level of (read: expensive) when every part of the pool’s filtration system wears out. As the years progress, then pool/backyard rebuild kicks off. Well, that original pool becomes a brand-new second pool. Rinse and repeat. Your local pool service company is assuredly not the lonely Maytag repairman. Source: Company Reports A decade or so ago, most backyard pools were simply pools surrounded by some type of hard coping. Fast forward to today, and our backyards have turned into major entertainment centers. We are spending much more time outdoors, and the backyard is now a focal point of our homes. Healthier outdoor living is now ingrained in our lifestyles and budgets. According to Zillow Research Surveys, respondents asked of the importance of a house with a pool (or spa) jumped to 35% in 2021, from 25% in just 2019. Source: Company Reports Pools are now surrounded by decking and patios, outdoor fireplaces and kitchens, majestic fireplaces and waterfalls, outdoor lighting, weatherproof speakers, hardscapes, landscapes, and irrigation – much of it connected to apps controlled by smartphones. Indeed, significant technological advancements are found across the entire spectrum of a modern pool, dominated by automation; sanitizing systems (salt systems, UV systems, ozone systems); heat pumps (which cool water too); robotic cleaners; whisper-quiet, variable speed pumps, and LED lighting. Pool Corp. distributed all this backyard evolution. A short history of the Company may be in order now. It’s rare that multibillion-dollar companies don’t have some type of Horatio Alger founding, driven by a single-minded, focused individual with that unique combination of entrepreneurship, grit, and perseverance through adversity. Pool Corp. founders would no doubt make Alger proud. Source: Company Reports South Central Pool Supply was founded in 1980 by Frank St. Romain in Metairie, Louisiana. Metairie is a suburb of New Orleans, which is in South Central Jefferson Parish. Starved for capital, the Company’s early years were marked by slow growth. In 1993 the Company was purchased by the Chicago-based private equity firm Code, Hennessey, and Simmons (CH&S). CH&S used the Company as a “platform company” to aggressively integrate vertically and horizontally. CH&S’ capital would prove to be insufficient too for its growth desires, so, in 1995, the Company went public as SCP Pool. (CH&S would sell half of its stake in SCP in 1997 and exit the remainder in 1998.) Then the POOL party commenced. The list of the Company’s acquisitions are too numerous to list here, but here are the first two-decade milestones, post CH&S: 1996: 44 service centers. 1997: 85 service centers in 30 states, distributing 34,000 national brand and private products to 23,000 customers. 1998: Enters New England, New Jersey, New York, and Pennsylvania. 2000: 20th consecutive year of both sales and earnings growth. $670 million in sales. 2001: 160 service centers in 35 states, distributing 52,000 national brand and private label products to 28,000 customers. 2006: 274 service centers; 70,000 customers. $1.9 billion in sales. 2016: 344 service centers; 100,000 customers. $2.6 billion in sales. Today, the Company with $5.3 billion in sales in 2021, is the world's largest wholesale distributor of swimming pool and related outdoor living products operating over 410 sales centers in 12 countries – North America, Europe, and Australia, distributing more than 200,000 national brand and private label products from over 2,200 vendors to roughly 120,000 wholesale customers. Notable too is the Company’s November 2021 acquisition of Largo, Florida-based Porpoise Pool & Patio, including its main operating subsidiaries, Sun Wholesale Supply and Pinch A Penny. Sun Wholesale Supply is a wholesale distributor of swimming pool and outdoor-living products, including a key, state-of-the-art (chlorine) specialty chemical packaging operation, which until now only sold to Pinch A Penny franchisees. Pinch A Penny is the largest franchiser of pool and outdoor living-related specialty retail stores in the U.S. with approximately 260 independently owned and operated franchised stores in Florida, Texas, Louisiana, Alabama, and Georgia and brings Pool Corp. substantial opportunities for expansion. Most of the Company’s business mix, 90%, is derived in the U.S. Canada is 5% and Europe is 5% too. 60% of the Company’s business revolves around the installed base of pools (and spas). Pool renovations and upgrades are 20%, and new pool construction is 20% as well. Its typical customer, +80%, are local maintenance contractors and professional builders. Local backyard-related retailers make up 12% and the rest is a small mixture of do-it-yourself customers and commercial customers (hotels, theme-parks, universities). The Company operates four distribution networks: SCP Distributors (SCP), Superior Pool Productors (Superior), Horizon Distributors (Horizon) and National Pool Tile (NPT). The Company further breaks down its business lines into two categories – “Blue” for its pool related products and services and “Green” for its outdoor, primarily backyard living products. Blue represents about 84% of revenue, Green represents 8%, and the rest is from outside the U.S. The Company estimates its U.S. share of the pool industry to be around 38% in the $10 billion wholesale market ($22 billion retail) – based on the U.S. installed base of 5.4 million pools. The Company is about four times larger than its only national competitor (Heritage Pool Supply – a division of SRS Distribution). Horizon (Green), the fourth largest landscape distributor in the U.S., with 81 locations largely in the Sunbelt, services into a $14 billion national Green addressable market. In addition to healthier outdoor lifestyles (plus the growing popularity of staycations), the Company also enjoys a significant tailwind of the migration to southern states. Such states include Arizona, Florida, and Texas. Texas is notable because its pool market is underdeveloped relative to other Sunbelt states. In U-Hauls annual review of interstate moves in 2021, it noted the following based on well over 2 million one-way U-Haul truck transactions: Texas narrowly beat Florida in transactions. Tennessee ranked third, followed by South Carolina and Arizona. California ranked 50th and Illinois 49th – both for the second consecutive year. 2021 migrations out of California weren’t as bad as in 2020, but that was only due to the fact U-Haul ran out of trucks to meet demand in 2021. Three of the states with the largest net losses were New York (45th), Massachusetts (47th) and Pennsylvania (48th). Source: RedFin and Goldman Sachs The Company reports that +82% of the population in the Sunbelt lives within 20 miles of a Superior/SCP branch and 54% with 10 miles. (An industry joke: “No moving vans go north, right. They go north with oranges, south with furniture.”)

Shareholder Returns

POOLUS Retail DistributorsUS Market
7D-7.8%-6.7%-6.9%
1Y-31.6%-5.7%-23.7%

Return vs Industry: POOL underperformed the US Retail Distributors industry which returned -5.1% over the past year.

Return vs Market: POOL underperformed the US Market which returned -23% over the past year.

Price Volatility

Is POOL's price volatile compared to industry and market?
POOL volatility
POOL Average Weekly Movement5.7%
Retail Distributors Industry Average Movement7.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
19935,500Pete Arvanhttps://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 Corporation Fundamentals Summary

How do Pool's earnings and revenue compare to its market cap?
POOL fundamental statistics
Market CapUS$12.35b
Earnings (TTM)US$771.74m
Revenue (TTM)US$5.92b

16.0x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
POOL income statement (TTM)
RevenueUS$5.92b
Cost of RevenueUS$4.04b
Gross ProfitUS$1.88b
Other ExpensesUS$1.11b
EarningsUS$771.74m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)19.49
Gross Margin31.75%
Net Profit Margin13.05%
Debt/Equity Ratio129.8%

How did POOL perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

17%

Payout Ratio