POOL CORP (POOL)
US73278L1052 - Common Stock
POOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 14 industry peers in the Distributors industry. POOL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. POOL does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
POOL had positive earnings in the past year.
POOL had a positive operating cash flow in the past year.
In the past 5 years POOL has always been profitable.
Each year in the past 5 years POOL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of POOL (13.24%) is better than 92.31% of its industry peers.
POOL has a Return On Equity of 36.99%. This is amongst the best in the industry. POOL outperforms 92.31% of its industry peers.
POOL has a Return On Invested Capital of 20.55%. This is amongst the best in the industry. POOL outperforms 92.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for POOL is significantly above the industry average of 13.48%.
The last Return On Invested Capital (20.55%) for POOL is well below the 3 year average (24.57%), which needs to be investigated, but indicates that POOL had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.24% | ||
| ROE | 36.99% | ||
| ROIC | 20.55% |
ROA(3y)18.73%
ROA(5y)18.98%
ROE(3y)53.54%
ROE(5y)56.35%
ROIC(3y)24.57%
ROIC(5y)25.18%
1.3 Margins
The Profit Margin of POOL (9.12%) is better than 76.92% of its industry peers.
In the last couple of years the Profit Margin of POOL has grown nicely.
The Operating Margin of POOL (13.00%) is better than 84.62% of its industry peers.
POOL's Operating Margin has improved in the last couple of years.
POOL's Gross Margin of 29.86% is fine compared to the rest of the industry. POOL outperforms 69.23% of its industry peers.
POOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13% | ||
| PM (TTM) | 9.12% | ||
| GM | 29.86% |
OM growth 3Y4.04%
OM growth 5Y5.17%
PM growth 3Y0.27%
PM growth 5Y3.73%
GM growth 3Y1.41%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), POOL is creating some value.
Compared to 1 year ago, POOL has less shares outstanding
Compared to 5 years ago, POOL has less shares outstanding
POOL has a better debt/assets ratio than last year.
2.2 Solvency
POOL has an Altman-Z score of 6.09. This indicates that POOL is financially healthy and has little risk of bankruptcy at the moment.
POOL has a Altman-Z score of 6.09. This is in the better half of the industry: POOL outperforms 61.54% of its industry peers.
The Debt to FCF ratio of POOL is 1.13, which is an excellent value as it means it would take POOL, only 1.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.13, POOL is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that POOL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, POOL is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
Although POOL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.44
WACC14.28%
2.3 Liquidity
POOL has a Current Ratio of 1.88. This is a normal value and indicates that POOL is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.88, POOL is doing good in the industry, outperforming 61.54% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that POOL may have some problems paying its short term obligations.
POOL's Quick ratio of 0.56 is on the low side compared to the rest of the industry. POOL is outperformed by 61.54% of its industry peers.
The current and quick ratio evaluation for POOL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
POOL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.47%.
Measured over the past years, POOL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.84% on average per year.
Looking at the last year, POOL shows a very negative growth in Revenue. The Revenue has decreased by -10.33% in the last year.
POOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.07% yearly.
EPS 1Y (TTM)-21.47%
EPS 3Y13.38%
EPS 5Y18.84%
EPS Q2Q%-15.74%
Revenue 1Y (TTM)-10.33%
Revenue growth 3Y12.07%
Revenue growth 5Y13.07%
Sales Q2Q%-4.72%
3.2 Future
The Earnings Per Share is expected to grow by 7.17% on average over the next years.
POOL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y0.7%
EPS Next 2Y5.12%
EPS Next 3Y7.17%
EPS Next 5YN/A
Revenue Next Year0.16%
Revenue Next 2Y2.74%
Revenue Next 3Y4.2%
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.
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
Based on the Price/Earnings ratio of 31.38, the valuation of POOL can be described as expensive.
POOL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 24.29. POOL is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 25.26, which means the current valuation is very expensive for POOL.
POOL's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.35. POOL is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.38 | ||
| Fwd PE | 25.26 |
4.2 Price Multiples
POOL's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as POOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.4 | ||
| EV/EBITDA | 19.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of POOL may justify a higher PE ratio.
PEG (NY)44.94
PEG (5Y)1.67
EPS Next 2Y5.12%
EPS Next 3Y7.17%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.47%.
POOL's Dividend Yield is a higher than the industry average which is at 7.37.
Compared to the average S&P500 Dividend Yield of 2.29, POOL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
On average, the dividend of POOL grows each year by 19.95%, which is quite nice.
POOL has paid a dividend for at least 10 years, which is a reliable track record.
POOL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)19.95%
Div Incr Years13
Div Non Decr Years19
5.3 Sustainability
34.29% of the earnings are spent on dividend by POOL. This is a low number and sustainable payout ratio.
POOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.29%
EPS Next 2Y5.12%
EPS Next 3Y7.17%
POOL CORP
NASDAQ:POOL (7/26/2024, 4:20:01 PM)
After market: 371.82 0 (0%)371.82
+11.88 (+3.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.38 | ||
| Fwd PE | 25.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)44.94
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.24% | ||
| ROE | 36.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13% | ||
| PM (TTM) | 9.12% | ||
| GM | 29.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-21.47%
EPS 3Y13.38%
EPS 5Y
EPS Q2Q%
EPS Next Y0.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.33%
Revenue growth 3Y12.07%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y