POOL CORP (POOL)
US73278L1052 - Common Stock
Taking everything into account, POOL scores 6 out of 10 in our fundamental rating. POOL was compared to 13 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
In the past year POOL was profitable.
In the past year POOL had a positive cash flow from operations.
In the past 5 years POOL has always been profitable.
POOL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.18%, POOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 39.64%, POOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of POOL (21.35%) is better than 100.00% of its industry peers.
POOL had an Average Return On Invested Capital over the past 3 years of 24.57%. This is significantly above the industry average of 11.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.18% | ||
| ROE | 39.64% | ||
| ROIC | 21.35% |
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
POOL has a Profit Margin of 9.39%. This is in the better half of the industry: POOL outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of POOL has grown nicely.
POOL has a Operating Margin of 13.47%. This is amongst the best in the industry. POOL outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of POOL has grown nicely.
The Gross Margin of POOL (29.96%) is comparable to the rest of the industry.
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 | 13.47% | ||
| PM (TTM) | 9.39% | ||
| GM | 29.96% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
The debt/assets ratio for POOL has been reduced compared to a year ago.
2.2 Solvency
POOL has an Altman-Z score of 7.11. This indicates that POOL is financially healthy and has little risk of bankruptcy at the moment.
POOL has a Altman-Z score of 7.11. This is amongst the best in the industry. POOL outperforms 83.33% of its industry peers.
POOL has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.27, POOL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that POOL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.77, POOL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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 | 0.77 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 7.11 |
ROIC/WACC1.92
WACC11.12%
2.3 Liquidity
POOL has a Current Ratio of 2.36. This indicates that POOL is financially healthy and has no problem in meeting its short term obligations.
POOL has a Current ratio (2.36) which is in line with its industry peers.
POOL has a Quick Ratio of 2.36. 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 0.58. This is in the lower half of the industry: POOL underperforms 66.67% 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 | 2.36 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
POOL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.84%.
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.
POOL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.32%.
Measured over the past years, POOL shows a quite strong growth in Revenue. The Revenue has been growing by 13.07% on average per year.
EPS 1Y (TTM)-27.84%
EPS 3Y13.38%
EPS 5Y18.84%
EPS growth Q2Q-27.47%
Revenue 1Y (TTM)-10.32%
Revenue growth 3Y12.07%
Revenue growth 5Y13.07%
Revenue growth Q2Q-8.47%
3.2 Future
The Earnings Per Share is expected to grow by 7.67% 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 4.09% on average per year.
EPS Next Y1.77%
EPS Next 2Y6.2%
EPS Next 3Y7.67%
EPS Next 5YN/A
Revenue Next Year1.18%
Revenue Next 2Y3.31%
Revenue Next 3Y4.09%
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
A Price/Earnings ratio of 27.78 indicates a quite expensive valuation of POOL.
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 25.20.
POOL is valuated quite expensively with a Price/Forward Earnings ratio of 27.30.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POOL is on the same level as its industry peers.
POOL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 27.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as POOL.
The rest of the industry has a similar Price/Free Cash Flow ratio as POOL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.2 | ||
| EV/EBITDA | 19.72 |
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)15.7
PEG (5Y)1.47
EPS Next 2Y6.2%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.74, POOL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.17, POOL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of POOL is nicely growing with an annual growth rate of 19.95%!
POOL has been paying a dividend for at least 10 years, so it has 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
POOL pays out 32.18% of its income as dividend. This is a sustainable payout ratio.
POOL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.18%
EPS Next 2Y6.2%
EPS Next 3Y7.67%
POOL CORP
NASDAQ:POOL (4/25/2024, 7:12:04 PM)
After market: 370 0 (0%)370
-7.39 (-1.96%)
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 Cap14.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 27.3 | ||
| 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)15.7
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.18% | ||
| ROE | 39.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.47% | ||
| PM (TTM) | 9.39% | ||
| GM | 29.96% | ||
| 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 Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.36 | ||
| Quick Ratio | 0.58 | ||
| 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)
Growth
EPS 1Y (TTM)-27.84%
EPS 3Y13.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.32%
Revenue growth 3Y12.07%
Revenue growth 5Y
Revenue growth 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
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FCF growth 1Y
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