POOL CORP (POOL) Stock Fundamental Analysis
NASDAQ:POOL - Nasdaq - US73278L1052 - Common Stock - Currency: USD
POOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 19 industry peers in the Distributors industry. Both the health and profitability get an excellent rating, making POOL a very profitable company, without any liquidiy or solvency issues. POOL has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years POOL has been profitable.
In the past 5 years POOL always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.96%, POOL belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
POOL's Return On Equity of 32.85% is amongst the best of the industry. POOL outperforms 89.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.49%, POOL belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for POOL is above the industry average of 18.59%.
The last Return On Invested Capital (17.49%) 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 | 10.96% | ||
| ROE | 32.85% | ||
| ROIC | 17.49% |
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 7.73%, POOL belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
POOL's Profit Margin has been stable in the last couple of years.
POOL has a Operating Margin of 11.14%. This is amongst the best in the industry. POOL outperforms 89.47% of its industry peers.
POOL's Operating Margin has improved in the last couple of years.
POOL's Gross Margin of 29.44% is fine compared to the rest of the industry. POOL outperforms 63.16% of its industry peers.
POOL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.14% | ||
| PM (TTM) | 7.73% | ||
| 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.
Compared to 5 years ago, POOL has less shares outstanding
Compared to 1 year ago, POOL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.22 indicates that POOL is not in any danger for bankruptcy at the moment.
POOL has a Altman-Z score of 5.22. This is comparable to the rest of the industry: POOL outperforms 57.89% of its industry peers.
The Debt to FCF ratio of POOL is 2.11, which is a good value as it means it would take POOL, 2.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.11, POOL belongs to the top of the industry, outperforming 84.21% 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.
POOL's Debt to Equity ratio of 0.78 is in line compared to the rest of the industry. POOL outperforms 42.11% of its industry peers.
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 | 0.78 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 5.22 |
ROIC/WACC2.06
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.79 indicates that POOL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.79, POOL is in line with its industry, outperforming 47.37% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that POOL may have some problems paying its short term obligations.
POOL has a worse Quick ratio (0.53) than 73.68% 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 | 1.79 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
POOL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.59%.
Measured over the past years, POOL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.97% on average per year.
Looking at the last year, POOL shows a decrease in Revenue. The Revenue has decreased by -3.56% in the last 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.
The Revenue is expected to grow by 3.23% on average over the next years.
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
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 28.39, POOL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of POOL is on the same level as its industry peers.
POOL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.28.
A Price/Forward Earnings ratio of 24.69 indicates a rather expensive valuation of POOL.
POOL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. POOL is cheaper than 73.68% of the companies in the same industry.
POOL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.39 | ||
| Fwd PE | 24.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as POOL.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of POOL indicates a somewhat cheap valuation: POOL is cheaper than 63.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.45 | ||
| EV/EBITDA | 19.49 |
4.3 Compensation for Growth
The excellent profitability rating of POOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.37
EPS Next 2Y4.24%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.65, POOL pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, POOL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)17.54%
Div Incr Years14
Div Non Decr Years20
5.3 Sustainability
POOL pays out 44.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
POOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.86%
EPS Next 2Y4.24%
EPS Next 3Y6.3%
302.67
-1.51 (-0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners101.04%
Inst Owner Change0.83%
Ins Owners3.11%
Ins Owner Change-6.71%
Market Cap11.38B
Analysts74
Price Target328.43 (8.51%)
Short Float %9.48%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend4.72
Dividend Growth(5Y)17.54%
DP44.86%
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)0.02%
PT rev (3m)-12.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.39 | ||
| Fwd PE | 24.69 | ||
| P/S | 2.16 | ||
| P/FCF | 23.45 | ||
| P/OCF | 21.04 | ||
| P/B | 9.19 | ||
| P/tB | 45.4 | ||
| EV/EBITDA | 19.49 |
EPS(TTM)10.66
EY3.52%
EPS(NY)12.26
Fwd EY4.05%
FCF(TTM)12.91
FCFY4.26%
OCF(TTM)14.39
OCFY4.75%
SpS139.94
BVpS32.94
TBVpS6.67
PEG (NY)N/A
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 32.85% | ||
| ROCE | 22.94% | ||
| ROIC | 17.49% | ||
| ROICexc | 17.99% | ||
| ROICexgc | 29.87% | ||
| OM | 11.14% | ||
| PM (TTM) | 7.73% | ||
| 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 | 2.11 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 119.29% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.5% | ||
| Profit Quality | 119.26% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 5.22 |
F-Score4
WACC8.51%
ROIC/WACC2.06
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%