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. POOL gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
POOL had a positive operating cash flow in the past year.
POOL had positive earnings in each of the past 5 years.
In the past 5 years POOL always reported a positive cash flow from operatings.
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.
POOL has a Return On Equity of 32.85%. This is amongst the best in the industry. POOL outperforms 89.47% of its industry peers.
POOL has a Return On Invested Capital of 17.49%. This is amongst the best in the industry. POOL outperforms 89.47% of its industry peers.
POOL had an Average Return On Invested Capital over the past 3 years of 22.40%. This 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
POOL has a better Profit Margin (7.73%) than 84.21% of its industry peers.
In the last couple of years the Profit Margin of POOL has remained more or less at the same level.
The Operating Margin of POOL (11.14%) is better than 89.47% of its industry peers.
In the last couple of years the Operating Margin of POOL has grown nicely.
Looking at the Gross Margin, with a value of 29.44%, POOL is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
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
POOL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, POOL has less shares outstanding
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 5.09 indicates that POOL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.09, POOL is doing good in the industry, outperforming 63.16% of the companies in the same industry.
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's Debt to FCF ratio of 2.11 is amongst the best of the industry. POOL outperforms 84.21% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that POOL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, POOL is in line with its industry, outperforming 42.11% of the companies in the same industry.
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 | 2.11 | ||
| Altman-Z | 5.09 |
ROIC/WACC2.04
WACC8.59%
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.
The Current ratio of POOL (1.79) 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.
POOL has a Quick ratio of 0.53. This is in the lower half of the industry: POOL underperforms 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%.
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 -3.56%.
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 27.07, 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.
When comparing the Price/Earnings ratio of POOL to the average of the S&P500 Index (26.34), we can say POOL is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.54, the valuation of POOL can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POOL indicates a somewhat cheap valuation: POOL is cheaper than 73.68% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of POOL to the average of the S&P500 Index (21.03), we can say POOL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.07 | ||
| Fwd PE | 23.54 |
4.2 Price Multiples
POOL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, POOL is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.36 | ||
| EV/EBITDA | 18.65 |
4.3 Compensation for Growth
POOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.26
EPS Next 2Y4.24%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.75%, POOL has a reasonable but not impressive dividend return.
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
The dividend of POOL is nicely growing with an annual growth rate of 17.54%!
POOL has paid a dividend for at least 10 years, which is 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
44.86% of the earnings are spent on dividend by POOL. 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%
288.52
+3.52 (+1.24%)
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 Cap10.85B
Analysts74
Price Target328.43 (13.83%)
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 | 27.07 | ||
| Fwd PE | 23.54 | ||
| P/S | 2.06 | ||
| P/FCF | 22.36 | ||
| P/OCF | 20.05 | ||
| P/B | 8.76 | ||
| P/tB | 43.28 | ||
| EV/EBITDA | 18.65 |
EPS(TTM)10.66
EY3.69%
EPS(NY)12.26
Fwd EY4.25%
FCF(TTM)12.91
FCFY4.47%
OCF(TTM)14.39
OCFY4.99%
SpS139.94
BVpS32.94
TBVpS6.67
PEG (NY)N/A
PEG (5Y)2.26
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 | 5.09 |
F-Score4
WACC8.59%
ROIC/WACC2.04
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%