POOL CORP (POOL) Stock Fundamental Analysis
NASDAQ:POOL - Nasdaq - US73278L1052 - Common Stock - Currency: USD
Taking everything into account, POOL scores 6 out of 10 in our fundamental rating. POOL was compared to 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 on the other hand it scores bad on growth.
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.
Each year in the past 5 years POOL has been profitable.
Each year in the past 5 years POOL had a positive operating cash flow.
1.2 Ratios
POOL's Return On Assets of 10.96% is amongst the best of the industry. POOL outperforms 84.21% of its industry peers.
Looking at the Return On Equity, with a value of 32.85%, POOL belongs to the top of the industry, outperforming 89.47% of the companies in the same industry.
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 3 year average ROIC (22.40%) for POOL is well above the current ROIC(17.49%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of POOL (7.73%) is better than 84.21% of its industry peers.
POOL's Profit Margin has been stable in the last couple of years.
POOL has a better Operating Margin (11.14%) than 89.47% of its industry peers.
POOL's Operating Margin has improved in the last couple of years.
POOL has a better Gross Margin (29.44%) than 63.16% 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) | 7.73% | ||
| 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.
POOL has less shares outstanding than it did 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 5.15 indicates that POOL is not in any danger for bankruptcy at the moment.
POOL's Altman-Z score of 5.15 is fine compared to the rest of the industry. POOL outperforms 63.16% 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.
POOL has a better Debt to FCF ratio (2.11) than 84.21% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that POOL is somewhat dependend on debt financing.
POOL has a Debt to Equity ratio (0.78) which is comparable to the rest of the industry.
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 | 5.15 |
ROIC/WACC2.06
WACC8.48%
2.3 Liquidity
POOL has a Current Ratio of 1.79. This is a normal value and indicates that POOL is financially healthy and should not expect problems in meeting its short term obligations.
POOL has a Current ratio (1.79) which is comparable to the rest of the 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.
The Quick ratio of POOL (0.53) is worse 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.
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.
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
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 27.46 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 (26.92), we can say POOL is valued inline with the index average.
POOL is valuated rather expensively with a Price/Forward Earnings ratio of 23.89.
73.68% of the companies in the same industry are more expensive than POOL, based on the Price/Forward Earnings ratio.
POOL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.46 | ||
| Fwd PE | 23.89 |
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 a bit cheaper when compared to the industry. POOL is cheaper than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.69 | ||
| EV/EBITDA | 18.99 |
4.3 Compensation for Growth
POOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.29
EPS Next 2Y4.24%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.74, POOL pays a bit more dividend than its industry peers.
POOL's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
On average, the dividend of POOL grows each year by 17.54%, 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)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%
292.77
-1.49 (-0.51%)
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 Cap11.01B
Analysts74
Price Target328.43 (12.18%)
Short Float %9.72%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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 | 27.46 | ||
| Fwd PE | 23.89 | ||
| P/S | 2.09 | ||
| P/FCF | 22.69 | ||
| P/OCF | 20.35 | ||
| P/B | 8.89 | ||
| P/tB | 43.91 | ||
| EV/EBITDA | 18.99 |
EPS(TTM)10.66
EY3.64%
EPS(NY)12.26
Fwd EY4.19%
FCF(TTM)12.91
FCFY4.41%
OCF(TTM)14.39
OCFY4.91%
SpS139.94
BVpS32.94
TBVpS6.67
PEG (NY)N/A
PEG (5Y)2.29
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 | 5.15 |
F-Score4
WACC8.48%
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%