Overall HAYW gets a fundamental rating of 5 out of 10. We evaluated HAYW against 42 industry peers in the Building Products industry. HAYW has only an average score on both its financial health and profitability. HAYW is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

HAYW had positive earnings in the past year.
HAYW had a positive operating cash flow in the past year.
Each year in the past 5 years HAYW has been profitable.
HAYW had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

HAYW has a Return On Assets of 4.54%. This is comparable to the rest of the industry: HAYW outperforms 42.86% of its industry peers.
Looking at the Return On Equity, with a value of 9.06%, HAYW is in line with its industry, outperforming 45.24% of the companies in the same industry.
With a Return On Invested Capital value of 6.73%, HAYW is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
HAYW had an Average Return On Invested Capital over the past 3 years of 7.09%. This is significantly below the industry average of 12.68%.

		Industry Rank	Sector Rank
ROA	4.54%
ROE	9.06%
ROIC	6.73%

ROA(3y)4.31%

ROA(5y)3.71%

ROE(3y)9.72%

ROE(5y)8.63%

ROIC(3y)7.09%

ROIC(5y)7.25%

1.3 Margins

With a decent Profit Margin value of 12.54%, HAYW is doing good in the industry, outperforming 66.67% of the companies in the same industry.
HAYW's Profit Margin has improved in the last couple of years.
HAYW has a better Operating Margin (20.93%) than 90.48% of its industry peers.
HAYW's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 51.31%, HAYW belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of HAYW has grown nicely.

		Industry Rank	Sector Rank
OM	20.93%
PM (TTM)	12.54%
GM	51.31%

OM growth 3Y-4.84%

OM growth 5Y12.75%

PM growth 3Y10.23%

PM growth 5Y57.64%

GM growth 3Y2.56%

GM growth 5Y2.73%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HAYW is destroying value.
Compared to 1 year ago, HAYW has more shares outstanding
HAYW has less shares outstanding than it did 5 years ago.
HAYW has a better debt/assets ratio than last year.

2.2 Solvency

HAYW has an Altman-Z score of 2.60. This is not the best score and indicates that HAYW is in the grey zone with still only limited risk for bankruptcy at the moment.
HAYW's Altman-Z score of 2.60 is on the low side compared to the rest of the industry. HAYW is outperformed by 66.67% of its industry peers.
HAYW has a debt to FCF ratio of 5.03. This is a neutral value as HAYW would need 5.03 years to pay back of all of its debts.
HAYW has a Debt to FCF ratio (5.03) which is comparable to the rest of the industry.
HAYW has a Debt/Equity ratio of 0.62. This is a neutral value indicating HAYW is somewhat dependend on debt financing.
HAYW has a Debt to Equity ratio of 0.62. This is comparable to the rest of the industry: HAYW outperforms 47.62% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.62
Debt/FCF	5.03
Altman-Z	2.6

ROIC/WACC0.73

WACC9.2%

2.3 Liquidity

A Current Ratio of 3.18 indicates that HAYW has no problem at all paying its short term obligations.
HAYW has a better Current ratio (3.18) than 78.57% of its industry peers.
A Quick Ratio of 2.31 indicates that HAYW has no problem at all paying its short term obligations.
The Quick ratio of HAYW (2.31) is better than 83.33% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.18
Quick Ratio	2.31

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

HAYW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.00%, which is quite impressive.
Measured over the past years, HAYW shows a very strong growth in Earnings Per Share. The EPS has been growing by 68.04% on average per year.
HAYW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.66%.
HAYW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.47% yearly.

EPS 1Y (TTM)25%

EPS 3Y-15.49%

EPS 5Y68.04%

EPS Q2Q%27.27%

Revenue 1Y (TTM)9.66%

Revenue growth 3Y-9.14%

Revenue growth 5Y7.47%

Sales Q2Q%7.37%

3.2 Future

Based on estimates for the next years, HAYW will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.46% on average per year.
The Revenue is expected to grow by 6.97% on average over the next years.

EPS Next Y15.85%

EPS Next 2Y13.5%

EPS Next 3Y13.18%

EPS Next 5Y11.46%

Revenue Next Year7.54%

Revenue Next 2Y6.38%

Revenue Next 3Y6.47%

Revenue Next 5Y6.97%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 21.52, which indicates a rather expensive current valuation of HAYW.
HAYW's Price/Earnings ratio is in line with the industry average.
HAYW is valuated rather cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.70, which indicates a rather expensive current valuation of HAYW.
HAYW's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HAYW to the average of the S&P500 Index (25.57), we can say HAYW is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	21.52
Fwd PE	18.7

4.2 Price Multiples

HAYW's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HAYW indicates a somewhat cheap valuation: HAYW is cheaper than 69.05% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	18.31
EV/EBITDA	13.95

4.3 Compensation for Growth

HAYW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of HAYW may justify a higher PE ratio.
A more expensive valuation may be justified as HAYW's earnings are expected to grow with 13.18% in the coming years.