POOL CORP (POOL) Stock Fundamental Analysis
NASDAQ:POOL - Nasdaq - US73278L1052 - Common Stock - Currency: USD
POOL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 18 industry peers in the Distributors industry. POOL scores excellent on profitability, but there are some minor concerns on its financial health. POOL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year POOL was profitable.
POOL had a positive operating cash flow in the past year.
In the past 5 years POOL has always been profitable.
In the past 5 years POOL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.97%, POOL is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
With an excellent Return On Equity value of 32.87%, POOL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Invested Capital of POOL (17.50%) is better than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for POOL is in line with the industry average of 23.10%.
The 3 year average ROIC (22.40%) for POOL is well above the current ROIC(17.50%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.97% | ||
| ROE | 32.87% | ||
| ROIC | 17.5% |
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 7.74%, POOL is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of POOL has remained more or less at the same level.
With an excellent Operating Margin value of 11.14%, POOL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Operating Margin of POOL has grown nicely.
The Gross Margin of POOL (29.44%) is better than 61.11% 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 | 11.14% | ||
| PM (TTM) | 7.74% | ||
| GM | 29.44% |
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.
The debt/assets ratio for POOL has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of POOL is 2.20, which is a good value as it means it would take POOL, 2.20 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.20, POOL is doing good in the industry, outperforming 72.22% of the companies in the same industry.
POOL has a Debt/Equity ratio of 0.78. This is a neutral value indicating POOL is somewhat dependend on debt financing.
The Debt to Equity ratio of POOL (0.78) is worse than 61.11% of its industry peers.
Even though the debt/equity ratio score it not favorable for POOL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | N/A |
ROIC/WACC1.87
WACC9.35%
2.3 Liquidity
A Current Ratio of 1.79 indicates that POOL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.79, POOL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
POOL has a Quick Ratio of 1.79. This is a bad value and indicates that POOL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.53, POOL is doing worse than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The earnings per share for POOL have decreased strongly by -16.59% in the last year.
POOL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.97% yearly.
The Revenue has decreased by -3.56% in the past year.
Measured over the past years, POOL shows a quite strong growth in Revenue. The Revenue has been growing by 10.67% on average per year.
EPS 1Y (TTM)-16.59%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%-30.39%
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%-4.4%
3.2 Future
Based on estimates for the next years, POOL will show a small growth in Earnings Per Share. The EPS will grow by 6.30% on average per year.
POOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.23% yearly.
EPS Next Y-0.18%
EPS Next 2Y4.24%
EPS Next 3Y6.3%
EPS Next 5YN/A
Revenue Next Year0.72%
Revenue Next 2Y2.47%
Revenue Next 3Y3.23%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.20 indicates a quite expensive valuation of POOL.
The rest of the industry has a similar Price/Earnings ratio as POOL.
When comparing the Price/Earnings ratio of POOL to the average of the S&P500 Index (26.25), we can say POOL is valued inline with the index average.
POOL is valuated rather expensively with a Price/Forward Earnings ratio of 24.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POOL indicates a somewhat cheap valuation: POOL is cheaper than 72.22% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. POOL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.2 | ||
| Fwd PE | 24.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of POOL is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of POOL indicates a somewhat cheap valuation: POOL is cheaper than 61.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.29 | ||
| EV/EBITDA | 19.45 |
4.3 Compensation for Growth
POOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.36
EPS Next 2Y4.24%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.65%.
POOL's Dividend Yield is a higher than the industry average which is at 2.67.
Compared to the average S&P500 Dividend Yield of 2.38, POOL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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
POOL pays out 44.83% of its income as dividend. 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.
DP44.83%
EPS Next 2Y4.24%
EPS Next 3Y6.3%
300.59
-0.2 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners100.42%
Inst Owner Change0.83%
Ins Owners2.95%
Ins Owner Change-6.72%
Market Cap11.30B
Analysts74
Price Target328.38 (9.25%)
Short Float %7.58%
Short Ratio5.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend4.72
Dividend Growth(5Y)17.54%
DP44.83%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.11%
Min EPS beat(2)-6.57%
Max EPS beat(2)6.79%
EPS beat(4)2
Avg EPS beat(4)0.49%
Min EPS beat(4)-6.57%
Max EPS beat(4)6.79%
EPS beat(8)4
Avg EPS beat(8)0.45%
EPS beat(12)5
Avg EPS beat(12)-2.17%
EPS beat(16)9
Avg EPS beat(16)4.51%
Revenue beat(2)1
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-4.41%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-4.41%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.87%
Revenue beat(12)2
Avg Revenue beat(12)-2.99%
Revenue beat(16)6
Avg Revenue beat(16)-1.2%
PT rev (1m)-7.14%
PT rev (3m)-14.36%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-6.92%
EPS NY rev (1m)-2.28%
EPS NY rev (3m)-7.41%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-2.66%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.2 | ||
| Fwd PE | 24.52 | ||
| P/S | 2.15 | ||
| P/FCF | 23.29 | ||
| P/OCF | 20.89 | ||
| P/B | 9.12 | ||
| P/tB | 45.09 | ||
| EV/EBITDA | 19.45 |
EPS(TTM)10.66
EY3.55%
EPS(NY)12.26
Fwd EY4.08%
FCF(TTM)12.91
FCFY4.29%
OCF(TTM)14.39
OCFY4.79%
SpS139.94
BVpS32.94
TBVpS6.67
PEG (NY)N/A
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.97% | ||
| ROE | 32.87% | ||
| ROCE | 22.94% | ||
| ROIC | 17.5% | ||
| ROICexc | 18.01% | ||
| ROICexgc | 29.91% | ||
| OM | 11.14% | ||
| PM (TTM) | 7.74% | ||
| GM | 29.44% | ||
| FCFM | 9.22% |
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-Score4
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.2 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 119.29% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.5% | ||
| Profit Quality | 119.18% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | N/A |
F-Score4
WACC9.35%
ROIC/WACC1.87
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)-16.59%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%-30.39%
EPS Next Y-0.18%
EPS Next 2Y4.24%
EPS Next 3Y6.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%-4.4%
Revenue Next Year0.72%
Revenue Next 2Y2.47%
Revenue Next 3Y3.23%
Revenue Next 5YN/A
EBIT growth 1Y-17.4%
EBIT growth 3Y-9.41%
EBIT growth 5Y12.59%
EBIT Next Year7.42%
EBIT Next 3Y7.47%
EBIT Next 5YN/A
FCF growth 1Y-34.97%
FCF growth 3Y29.55%
FCF growth 5Y17.71%
OCF growth 1Y-32.06%
OCF growth 3Y28.11%
OCF growth 5Y17.15%