POOL CORP (POOL) Stock Fundamental Analysis
USA - NASDAQ:POOL - US73278L1052 - Common Stock
312.94 USD
+0.31 (+0.1%)
312.94 USD
0 (0%)
Overall POOL gets a fundamental rating of 6 out of 10. We evaluated POOL against 22 industry peers in the Distributors industry. While POOL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. POOL has a expensive valuation and it also scores bad on growth.
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 11.13%, POOL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
The Return On Equity of POOL (31.46%) is better than 90.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.62%, POOL belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
POOL had an Average Return On Invested Capital over the past 3 years of 22.40%. This is significantly above the industry average of 15.24%.
The 3 year average ROIC (22.40%) for POOL is well above the current ROIC(15.62%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 31.46% | ||
| ROIC | 15.62% |
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's Profit Margin of 7.75% is amongst the best of the industry. POOL outperforms 81.82% of its industry peers.
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 11.13%, POOL belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Operating Margin of POOL has grown nicely.
Looking at the Gross Margin, with a value of 29.46%, POOL is in the better half of the industry, outperforming 68.18% 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 | 11.13% | ||
| PM (TTM) | 7.75% | ||
| GM | 29.46% |
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.
POOL has less shares outstanding than it did 5 years ago.
POOL has a better debt/assets ratio than last year.
2.2 Solvency
POOL has an Altman-Z score of 5.56. This indicates that POOL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of POOL (5.56) is better than 63.64% of its industry peers.
The Debt to FCF ratio of POOL is 2.84, which is a good value as it means it would take POOL, 2.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of POOL (2.84) is better than 72.73% of its industry peers.
POOL has a Debt/Equity ratio of 0.94. This is a neutral value indicating POOL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.94, POOL is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 5.56 |
ROIC/WACC1.44
WACC10.83%
2.3 Liquidity
A Current Ratio of 2.52 indicates that POOL has no problem at all paying its short term obligations.
POOL has a Current ratio of 2.52. This is in the better half of the industry: POOL outperforms 72.73% of its industry peers.
POOL has a Quick Ratio of 2.52. 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 (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for POOL have decreased by -8.60% in the last year.
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 -1.71% 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)-8.6%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%3.61%
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%0.83%
3.2 Future
The Earnings Per Share is expected to grow by 5.69% on average over the next years.
Based on estimates for the next years, POOL will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y-1.19%
EPS Next 2Y3.34%
EPS Next 3Y5.69%
EPS Next 5YN/A
Revenue Next Year0.43%
Revenue Next 2Y2.07%
Revenue Next 3Y3.02%
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
With a Price/Earnings ratio of 28.87, POOL can be considered very expensive at the moment.
POOL's Price/Earnings is on the same level as the industry average.
POOL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 25.98 indicates a quite expensive valuation of POOL.
77.27% of the companies in the same industry are more expensive than POOL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of POOL to the average of the S&P500 Index (22.87), we can say POOL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.87 | ||
| Fwd PE | 25.98 |
4.2 Price Multiples
POOL's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as POOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.93 | ||
| EV/EBITDA | 20.17 |
4.3 Compensation for Growth
POOL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.41
EPS Next 2Y3.34%
EPS Next 3Y5.69%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
POOL's Dividend Yield is a higher than the industry average which is at 3.10.
POOL's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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
44.90% of the earnings are spent on dividend by POOL. 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.
DP44.9%
EPS Next 2Y3.34%
EPS Next 3Y5.69%
312.94
+0.31 (+0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners103.05%
Inst Owner Change5.81%
Ins Owners3.11%
Ins Owner Change-12.3%
Market Cap11.68B
Analysts74
Price Target339.82 (8.59%)
Short Float %10%
Short Ratio6.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend4.72
Dividend Growth(5Y)17.54%
DP44.9%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.44%
Min EPS beat(2)-6.57%
Max EPS beat(2)-0.32%
EPS beat(4)2
Avg EPS beat(4)0.47%
Min EPS beat(4)-6.57%
Max EPS beat(4)6.79%
EPS beat(8)4
Avg EPS beat(8)1.03%
EPS beat(12)5
Avg EPS beat(12)-2.16%
EPS beat(16)8
Avg EPS beat(16)3.61%
Revenue beat(2)0
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-4.41%
Max Revenue beat(2)-1.79%
Revenue beat(4)2
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-4.41%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.62%
Revenue beat(12)2
Avg Revenue beat(12)-2.67%
Revenue beat(16)5
Avg Revenue beat(16)-1.38%
PT rev (1m)0.25%
PT rev (3m)3.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.46%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.87 | ||
| Fwd PE | 25.98 | ||
| P/S | 2.21 | ||
| P/FCF | 26.93 | ||
| P/OCF | 24.05 | ||
| P/B | 8.99 | ||
| P/tB | 37.45 | ||
| EV/EBITDA | 20.17 |
EPS(TTM)10.84
EY3.46%
EPS(NY)12.05
Fwd EY3.85%
FCF(TTM)11.62
FCFY3.71%
OCF(TTM)13.01
OCFY4.16%
SpS141.38
BVpS34.81
TBVpS8.36
PEG (NY)N/A
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 31.46% | ||
| ROCE | 20.5% | ||
| ROIC | 15.62% | ||
| ROICexc | 16.09% | ||
| ROICexgc | 24.92% | ||
| OM | 11.13% | ||
| PM (TTM) | 7.75% | ||
| GM | 29.46% | ||
| FCFM | 8.22% |
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-Score5
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.84 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 108.65% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.46% | ||
| Profit Quality | 106.08% | ||
| Current Ratio | 2.52 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 5.56 |
F-Score5
WACC10.83%
ROIC/WACC1.44
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)-8.6%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%3.61%
EPS Next Y-1.19%
EPS Next 2Y3.34%
EPS Next 3Y5.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%0.83%
Revenue Next Year0.43%
Revenue Next 2Y2.07%
Revenue Next 3Y3.02%
Revenue Next 5YN/A
EBIT growth 1Y-10.2%
EBIT growth 3Y-9.41%
EBIT growth 5Y12.59%
EBIT Next Year7.41%
EBIT Next 3Y6.81%
EBIT Next 5YN/A
FCF growth 1Y-44.34%
FCF growth 3Y29.55%
FCF growth 5Y17.71%
OCF growth 1Y-41.71%
OCF growth 3Y28.11%
OCF growth 5Y17.15%