POOL CORP (POOL) Stock Fundamental Analysis
NASDAQ:POOL - US73278L1052 - Common Stock
304.74 USD
-0.33 (-0.11%)
304.74 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to POOL. POOL was compared to 22 industry peers in the Distributors industry. POOL scores excellent on profitability, but there are some minor concerns on its financial health. POOL does not seem to be growing, but still is valued expensively.
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
The Return On Assets of POOL (11.13%) is better than 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 31.46%, POOL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Return On Invested Capital of POOL (15.62%) is better than 86.36% of its industry peers.
POOL had an Average Return On Invested Capital over the past 3 years of 22.40%. This is significantly above the industry average of 15.23%.
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 has a better Profit Margin (7.75%) than 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.
POOL's Operating Margin of 11.13% is amongst the best of the industry. POOL outperforms 95.45% of its industry peers.
POOL's Operating Margin has improved in the last couple of years.
POOL's Gross Margin of 29.46% is fine compared to the rest of the industry. POOL outperforms 68.18% 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 | 11.13% | ||
| 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.
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
POOL has an Altman-Z score of 5.49. This indicates that POOL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of POOL (5.49) is comparable to the rest of the industry.
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.
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: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 5.49 |
ROIC/WACC1.53
WACC10.18%
2.3 Liquidity
POOL has a Current Ratio of 2.52. This indicates that POOL is financially healthy and has no problem in meeting 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 72.73% of the companies in the same industry.
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.
POOL's Quick ratio of 0.87 is in line compared to the rest of the industry. POOL outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.52 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
POOL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.60%.
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
POOL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.69% yearly.
The Revenue is expected to grow by 3.02% on average over the next years.
EPS Next Y-1.29%
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
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 28.11, POOL can be considered very expensive at the moment.
POOL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.84. POOL is around the same levels.
With a Price/Forward Earnings ratio of 25.30, POOL can be considered very expensive at the moment.
POOL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. POOL is cheaper than 77.27% of the companies in the same industry.
POOL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.11 | ||
| Fwd PE | 25.3 |
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 | 26.23 | ||
| EV/EBITDA | 19.73 |
4.3 Compensation for Growth
The excellent profitability rating of POOL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.35
EPS Next 2Y3.34%
EPS Next 3Y5.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, POOL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.67, POOL pays a better dividend. On top of this POOL pays more dividend than 81.82% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, POOL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of POOL is nicely growing with an annual growth rate of 17.54%!
POOL has been paying a dividend for at least 10 years, so it has 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.
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%
304.74
-0.33 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners100.35%
Inst Owner Change5.81%
Ins Owners3.11%
Ins Owner Change-12.3%
Market Cap11.37B
Analysts74
Price Target339.82 (11.51%)
Short Float %12.3%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)2.94%
PT rev (3m)3.48%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)-1.16%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.11 | ||
| Fwd PE | 25.3 | ||
| P/S | 2.16 | ||
| P/FCF | 26.23 | ||
| P/OCF | 23.42 | ||
| P/B | 8.75 | ||
| P/tB | 36.47 | ||
| EV/EBITDA | 19.73 |
EPS(TTM)10.84
EY3.56%
EPS(NY)12.05
Fwd EY3.95%
FCF(TTM)11.62
FCFY3.81%
OCF(TTM)13.01
OCFY4.27%
SpS141.38
BVpS34.81
TBVpS8.36
PEG (NY)N/A
PEG (5Y)2.35
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 | 5.49 |
F-Score5
WACC10.18%
ROIC/WACC1.53
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-1.29%
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%