POOL CORP (POOL)

US73278L1052 - Common Stock

387.61  +8.53 (+2.25%)

After market: 387.61 0 (0%)

Fundamental Rating

6

POOL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 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.



9

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.
POOL had positive earnings in 4 of the past 5 years.
POOL had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

POOL has a Return On Assets of 15.76%. This is amongst the best in the industry. POOL outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 38.13%, POOL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 22.05%, POOL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for POOL is significantly above the industry average of 13.69%.
The last Return On Invested Capital (22.05%) for POOL is well below the 3 year average (27.46%), which needs to be investigated, but indicates that POOL had better years and this may not be a problem.
Industry RankSector Rank
ROA 15.76%
ROE 38.13%
ROIC 22.05%
ROA(3y)20.7%
ROA(5y)19.73%
ROE(3y)59.44%
ROE(5y)69.39%
ROIC(3y)27.46%
ROIC(5y)26.5%

1.3 Margins

Looking at the Profit Margin, with a value of 9.60%, POOL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
In the last couple of years the Profit Margin of POOL has grown nicely.
Looking at the Operating Margin, with a value of 13.76%, POOL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
POOL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 29.85%, POOL is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
POOL's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.76%
PM (TTM) 9.6%
GM 29.85%
OM growth 3Y15.92%
OM growth 5Y10.24%
PM growth 3Y13.78%
PM growth 5Y11.88%
GM growth 3Y2.67%
GM growth 5Y1.61%

6

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.
There is no outstanding debt for POOL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

POOL has an Altman-Z score of 7.48. This indicates that POOL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.48, POOL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
The Debt to FCF ratio of POOL is 1.19, which is an excellent value as it means it would take POOL, only 1.19 years of fcf income to pay off all of its debts.
POOL's Debt to FCF ratio of 1.19 is fine compared to the rest of the industry. POOL outperforms 72.73% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that POOL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, POOL is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
Although POOL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF 1.19
Altman-Z 7.48
ROIC/WACC2.07
WACC10.63%

2.3 Liquidity

A Current Ratio of 2.58 indicates that POOL has no problem at all paying its short term obligations.
POOL has a Current ratio of 2.58. This is in the better half of the industry: POOL outperforms 72.73% of its industry peers.
A Quick Ratio of 0.81 indicates that POOL may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, POOL perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.58
Quick Ratio 0.81

3

3. Growth

3.1 Past

POOL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.28%.
The Earnings Per Share has been growing by 35.11% on average over the past years. This is a very strong growth
Looking at the last year, POOL shows a decrease in Revenue. The Revenue has decreased by -7.92% in the last year.
The Revenue has been growing by 17.25% on average over the past years. This is quite good.
EPS 1Y (TTM)-28.28%
EPS 3Y42.27%
EPS 5Y35.11%
EPS growth Q2Q-26.57%
Revenue 1Y (TTM)-7.92%
Revenue growth 3Y24.54%
Revenue growth 5Y17.25%
Revenue growth Q2Q-8.72%

3.2 Future

POOL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.19% yearly.
The Revenue is expected to grow by 1.83% on average over the next years.
EPS Next Y-26.74%
EPS Next 2Y-11.45%
EPS Next 3Y-4.18%
EPS Next 5Y-1.19%
Revenue Next Year-10.75%
Revenue Next 2Y-3.86%
Revenue Next 3Y-0.69%
Revenue Next 5Y1.83%

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.

3

4. Valuation

4.1 Price/Earnings Ratio

POOL is valuated quite expensively with a Price/Earnings ratio of 28.05.
POOL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of POOL to the average of the S&P500 Index (26.35), we can say POOL is valued inline with the index average.
The Price/Forward Earnings ratio is 26.78, which means the current valuation is very expensive for POOL.
POOL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. POOL is cheaper than 72.73% of the companies in the same industry.
POOL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.63.
Industry RankSector Rank
PE 28.05
Fwd PE 26.78

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of POOL is on the same level as its industry peers.
POOL's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 17.26
EV/EBITDA 19.17

4.3 Compensation for Growth

The excellent profitability rating of POOL may justify a higher PE ratio.
A cheap valuation may be justified as POOL's earnings are expected to decrease with -4.18% in the coming years.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y-11.45%
EPS Next 3Y-4.18%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.13%, POOL has a reasonable but not impressive dividend return.
POOL's Dividend Yield is a higher than the industry average which is at 1.92.
With a Dividend Yield of 1.13, POOL pays less dividend than the S&P500 average, which is at 2.46.
Industry RankSector Rank
Dividend Yield 1.13%

5.2 History

On average, the dividend of POOL grows each year by 21.63%, which is quite nice.
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)21.63%
Div Incr Years13
Div Non Decr Years19

5.3 Sustainability

30.33% of the earnings are spent on dividend by POOL. This is a low number and sustainable payout ratio.
DP30.33%
EPS Next 2Y-11.45%
EPS Next 3Y-4.18%

POOL CORP

NASDAQ:POOL (2/23/2024, 7:06:26 PM)

After market: 387.61 0 (0%)

387.61

+8.53 (+2.25%)

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 Cap14.99B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.13%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 28.05
Fwd PE 26.78
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)N/A
PEG (5Y)0.8
Profitability
Industry RankSector Rank
ROA 15.76%
ROE 38.13%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.76%
PM (TTM) 9.6%
GM 29.85%
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 Turnover1.64
Health
Industry RankSector Rank
Debt/Equity 0.7
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.58
Quick Ratio 0.81
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)-28.28%
EPS 3Y42.27%
EPS 5Y
EPS growth Q2Q
EPS Next Y-26.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.92%
Revenue growth 3Y24.54%
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
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y