POOL CORP (POOL) Stock Fundamental Analysis
NASDAQ:POOL - Nasdaq - US73278L1052 - Common Stock - Currency: USD
Overall POOL gets a fundamental rating of 6 out of 10. We evaluated POOL against 20 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year POOL was profitable.
POOL had a positive operating cash flow in the past year.
Each year in the past 5 years POOL has 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 11.13%, POOL belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
With an excellent Return On Equity value of 31.46%, POOL belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.62%, POOL belongs to the best of the industry, outperforming 90.00% 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 above the industry average of 17.88%.
The last Return On Invested Capital (15.62%) 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 | 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
With an excellent Profit Margin value of 7.75%, POOL belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
POOL's Profit Margin has been stable in the last couple of years.
POOL's Operating Margin of 11.13% is amongst the best of the industry. POOL outperforms 95.00% of its industry peers.
POOL's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 29.46%, POOL is doing good in the industry, outperforming 65.00% of the companies in the same 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so POOL is creating value.
POOL has less shares outstanding than it did 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 5.58. This indicates that POOL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of POOL (5.58) is better than 65.00% of its industry peers.
POOL has a debt to FCF ratio of 2.84. This is a good value and a sign of high solvency as POOL would need 2.84 years to pay back of all of its debts.
The Debt to FCF ratio of POOL (2.84) is better than 85.00% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that POOL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, POOL is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 5.58 |
ROIC/WACC1.56
WACC10.02%
2.3 Liquidity
A Current Ratio of 2.52 indicates that POOL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.52, POOL is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that POOL may have some problems paying its short term obligations.
POOL has a Quick ratio (0.87) which is in line with its industry peers.
| 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.
The Revenue has decreased by -1.71% in the past year.
POOL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.67% yearly.
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
Based on estimates for the next years, POOL will show a small growth in Earnings Per Share. The EPS will grow by 6.44% on average per year.
The Revenue is expected to grow by 3.03% on average over the next years.
EPS Next Y-0.13%
EPS Next 2Y4.41%
EPS Next 3Y6.44%
EPS Next 5YN/A
Revenue Next Year0.57%
Revenue Next 2Y2.16%
Revenue Next 3Y3.03%
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.
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 28.96, POOL can be considered very expensive at the moment.
POOL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of POOL to the average of the S&P500 Index (26.73), we can say POOL is valued inline with the index average.
POOL is valuated quite expensively with a Price/Forward Earnings ratio of 25.53.
POOL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. POOL is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of POOL to the average of the S&P500 Index (34.61), we can say POOL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 25.53 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.23 | ||
| EV/EBITDA | 20.32 |
4.3 Compensation for Growth
The excellent profitability rating of POOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.42
EPS Next 2Y4.41%
EPS Next 3Y6.44%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.62%.
POOL's Dividend Yield is a higher than the industry average which is at 2.78.
POOL's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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 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 44.90% 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.
DP44.9%
EPS Next 2Y4.41%
EPS Next 3Y6.44%
NASDAQ:POOL (8/13/2025, 10:56:07 AM)
313.98
+1.13 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change-0.11%
Ins Owners3.11%
Ins Owner Change-6.71%
Market Cap11.81B
Analysts74
Price Target338.97 (7.96%)
Short Float %11.43%
Short Ratio5.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)3.21%
PT rev (3m)-4.14%
EPS NQ rev (1m)-1.7%
EPS NQ rev (3m)-2.91%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 25.53 | ||
| P/S | 2.24 | ||
| P/FCF | 27.23 | ||
| P/OCF | 24.31 | ||
| P/B | 9.09 | ||
| P/tB | 37.86 | ||
| EV/EBITDA | 20.32 |
EPS(TTM)10.84
EY3.45%
EPS(NY)12.3
Fwd EY3.92%
FCF(TTM)11.53
FCFY3.67%
OCF(TTM)12.91
OCFY4.11%
SpS140.33
BVpS34.55
TBVpS8.29
PEG (NY)N/A
PEG (5Y)2.42
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 | 5.58 |
F-Score5
WACC10.02%
ROIC/WACC1.56
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-0.13%
EPS Next 2Y4.41%
EPS Next 3Y6.44%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%0.83%
Revenue Next Year0.57%
Revenue Next 2Y2.16%
Revenue Next 3Y3.03%
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%