POOL CORP (POOL) Stock Fundamental Analysis
USA - NASDAQ:POOL - US73278L1052 - Common Stock
290.21 USD
+0.04 (+0.01%)
290.21 USD
0 (0%)
POOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 22 industry peers in the Distributors industry. POOL scores excellent on profitability, but there are some minor concerns on its financial health. POOL has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
POOL had positive earnings in the past year.
In the past year POOL had a positive cash flow from operations.
POOL had positive earnings in each of the past 5 years.
Each year in the past 5 years POOL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of POOL (11.13%) is better than 81.82% of its industry peers.
POOL has a Return On Equity of 31.46%. This is amongst the best in the industry. POOL outperforms 95.45% of its industry peers.
POOL's Return On Invested Capital of 15.62% is amongst the best of the industry. POOL outperforms 90.91% of its industry peers.
POOL had an Average Return On Invested Capital over the past 3 years of 22.40%. This is significantly above the industry average of 14.75%.
The last Return On Invested Capital (15.62%) for POOL is well below the 3 year average (22.40%), which needs to be investigated, but indicates that POOL had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 31.46% | ||
| ROIC | 15.62% |
ROA(3y)16.3%
ROA(5y)18.02%
ROE(3y)44.61%
ROE(5y)50.38%
ROIC(3y)22.4%
ROIC(5y)24.25%
1.3 Margins
Looking at the Profit Margin, with a value of 7.75%, POOL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
POOL's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 11.13%, POOL belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
POOL's Operating Margin has improved in the last couple of years.
POOL's Gross Margin of 29.46% is fine compared to the rest of the industry. POOL outperforms 72.73% of its industry peers.
In the last couple of years the Gross Margin of POOL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.13% | ||
| PM (TTM) | 7.75% | ||
| GM | 29.46% |
OM growth 3Y-9.5%
OM growth 5Y1.73%
PM growth 3Y-12.84%
PM growth 5Y-0.1%
GM growth 3Y-0.96%
GM growth 5Y0.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), POOL is creating value.
The number of shares outstanding for POOL has been reduced compared to 1 year ago.
The number of shares outstanding for POOL has been reduced compared to 5 years ago.
POOL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.35 indicates that POOL is not in any danger for bankruptcy at the moment.
The Altman-Z score of POOL (5.35) is comparable to the rest of the industry.
POOL has a debt to FCF ratio of 2.84. This is a good value and a sign of high solvency as POOL would need 2.84 years to pay back of all of its debts.
POOL has a Debt to FCF ratio of 2.84. This is in the better half of the industry: POOL outperforms 72.73% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that POOL is somewhat dependend on debt financing.
POOL has a Debt to Equity ratio of 0.94. This is in the lower half of the industry: POOL underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 5.35 |
ROIC/WACC1.46
WACC10.73%
2.3 Liquidity
A Current Ratio of 2.52 indicates that POOL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.52, POOL is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that POOL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, POOL is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
POOL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.60%.
The Earnings Per Share has been growing by 11.97% on average over the past years. This is quite good.
POOL shows a decrease in Revenue. In the last year, the revenue decreased by -1.71%.
The Revenue has been growing by 10.67% on average over the past years. This is quite good.
EPS 1Y (TTM)-8.6%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%3.61%
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%0.83%
3.2 Future
The Earnings Per Share is expected to grow by 5.69% on average over the next years.
Based on estimates for the next years, POOL will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y-1.19%
EPS Next 2Y3.34%
EPS Next 3Y5.69%
EPS Next 5YN/A
Revenue Next Year0.45%
Revenue Next 2Y2.05%
Revenue Next 3Y3.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.77, POOL can be considered very expensive at the moment.
63.64% of the companies in the same industry are more expensive than POOL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of POOL to the average of the S&P500 Index (27.29), we can say POOL is valued inline with the index average.
POOL is valuated rather expensively with a Price/Forward Earnings ratio of 24.09.
Based on the Price/Forward Earnings ratio, POOL is valued a bit cheaper than 77.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.85. POOL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.77 | ||
| Fwd PE | 24.09 |
4.2 Price Multiples
POOL's Enterprise Value to EBITDA ratio is in line with the industry average.
POOL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.98 | ||
| EV/EBITDA | 18.85 |
4.3 Compensation for Growth
POOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.24
EPS Next 2Y3.34%
EPS Next 3Y5.69%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.69%.
Compared to an average industry Dividend Yield of 3.22, POOL pays a bit more dividend than its industry peers.
POOL's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of POOL is nicely growing with an annual growth rate of 17.54%!
POOL has been paying a dividend for at least 10 years, so it has a reliable track record.
POOL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.54%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
44.90% of the earnings are spent on dividend by POOL. This is a bit on the high side, but may be sustainable.
The dividend of POOL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.9%
EPS Next 2Y3.34%
EPS Next 3Y5.69%
290.21
+0.04 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners103.05%
Inst Owner Change-0.01%
Ins Owners3.11%
Ins Owner Change0.67%
Market Cap10.83B
Analysts74
Price Target339.68 (17.05%)
Short Float %10.29%
Short Ratio6.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend4.72
Dividend Growth(5Y)17.54%
DP44.9%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.44%
Min EPS beat(2)-6.57%
Max EPS beat(2)-0.32%
EPS beat(4)2
Avg EPS beat(4)0.47%
Min EPS beat(4)-6.57%
Max EPS beat(4)6.79%
EPS beat(8)4
Avg EPS beat(8)1.03%
EPS beat(12)5
Avg EPS beat(12)-2.16%
EPS beat(16)8
Avg EPS beat(16)3.61%
Revenue beat(2)0
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-4.41%
Max Revenue beat(2)-1.79%
Revenue beat(4)2
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-4.41%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.62%
Revenue beat(12)2
Avg Revenue beat(12)-2.67%
Revenue beat(16)5
Avg Revenue beat(16)-1.38%
PT rev (1m)-0.04%
PT rev (3m)3.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.77 | ||
| Fwd PE | 24.09 | ||
| P/S | 2.05 | ||
| P/FCF | 24.98 | ||
| P/OCF | 22.31 | ||
| P/B | 8.34 | ||
| P/tB | 34.73 | ||
| EV/EBITDA | 18.85 |
EPS(TTM)10.84
EY3.74%
EPS(NY)12.05
Fwd EY4.15%
FCF(TTM)11.62
FCFY4%
OCF(TTM)13.01
OCFY4.48%
SpS141.38
BVpS34.81
TBVpS8.36
PEG (NY)N/A
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 31.46% | ||
| ROCE | 20.5% | ||
| ROIC | 15.62% | ||
| ROICexc | 16.09% | ||
| ROICexgc | 24.92% | ||
| OM | 11.13% | ||
| PM (TTM) | 7.75% | ||
| GM | 29.46% | ||
| FCFM | 8.22% |
ROA(3y)16.3%
ROA(5y)18.02%
ROE(3y)44.61%
ROE(5y)50.38%
ROIC(3y)22.4%
ROIC(5y)24.25%
ROICexc(3y)22.92%
ROICexc(5y)24.78%
ROICexgc(3y)36.83%
ROICexgc(5y)38.4%
ROCE(3y)29.36%
ROCE(5y)31.79%
ROICexcg growth 3Y-9.32%
ROICexcg growth 5Y1.46%
ROICexc growth 3Y-9.21%
ROICexc growth 5Y-4.65%
OM growth 3Y-9.5%
OM growth 5Y1.73%
PM growth 3Y-12.84%
PM growth 5Y-0.1%
GM growth 3Y-0.96%
GM growth 5Y0.52%
F-Score5
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.84 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 108.65% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.46% | ||
| Profit Quality | 106.08% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 5.35 |
F-Score5
WACC10.73%
ROIC/WACC1.46
Cap/Depr(3y)130.76%
Cap/Depr(5y)118.35%
Cap/Sales(3y)0.97%
Cap/Sales(5y)0.83%
Profit Quality(3y)119.07%
Profit Quality(5y)100.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-8.6%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%3.61%
EPS Next Y-1.19%
EPS Next 2Y3.34%
EPS Next 3Y5.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%0.83%
Revenue Next Year0.45%
Revenue Next 2Y2.05%
Revenue Next 3Y3.02%
Revenue Next 5YN/A
EBIT growth 1Y-10.2%
EBIT growth 3Y-9.41%
EBIT growth 5Y12.59%
EBIT Next Year7.41%
EBIT Next 3Y6.81%
EBIT Next 5YN/A
FCF growth 1Y-44.34%
FCF growth 3Y29.55%
FCF growth 5Y17.71%
OCF growth 1Y-41.71%
OCF growth 3Y28.11%
OCF growth 5Y17.15%