POOL CORP (POOL) Stock Fundamental Analysis
NASDAQ:POOL - Nasdaq - US73278L1052 - Common Stock - Currency: USD
Taking everything into account, POOL scores 5 out of 10 in our fundamental rating. POOL was compared to 18 industry peers in the Distributors industry. POOL has an excellent profitability rating, but 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
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.
In the past 5 years POOL always reported a positive cash flow from operatings.
1.2 Ratios
POOL has a better Return On Assets (10.97%) than 77.78% of its industry peers.
POOL's Return On Equity of 32.87% is amongst the best of the industry. POOL outperforms 83.33% of its industry peers.
The Return On Invested Capital of POOL (17.50%) is better than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for POOL is in line with the industry average of 23.24%.
The last Return On Invested Capital (17.50%) 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 | 10.97% | ||
| ROE | 32.87% | ||
| ROIC | 17.5% |
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 7.74% is fine compared to the rest of the industry. POOL outperforms 77.78% of its industry peers.
In the last couple of years the Profit Margin of POOL has remained more or less at the same level.
The Operating Margin of POOL (11.14%) is better than 77.78% of its industry peers.
In the last couple of years the Operating Margin of POOL has grown nicely.
With a decent Gross Margin value of 29.44%, POOL is doing good in the industry, outperforming 61.11% 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 | 11.14% | ||
| PM (TTM) | 7.74% | ||
| GM | 29.44% |
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.
The debt/assets ratio for POOL has been reduced compared to a year ago.
2.2 Solvency
POOL has a debt to FCF ratio of 2.20. This is a good value and a sign of high solvency as POOL would need 2.20 years to pay back of all of its debts.
POOL's Debt to FCF ratio of 2.20 is fine compared to the rest of the industry. POOL outperforms 72.22% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that POOL is somewhat dependend on debt financing.
The Debt to Equity ratio of POOL (0.78) is worse than 61.11% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | N/A |
ROIC/WACC1.58
WACC11.09%
2.3 Liquidity
POOL has a Current Ratio of 1.79. This is a normal value and indicates that POOL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.79, POOL is in line with its industry, outperforming 50.00% of the companies in the same industry.
POOL has a Quick Ratio of 1.79. This is a bad value and indicates that POOL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.53, POOL is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
POOL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.37%.
POOL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.97% yearly.
POOL shows a decrease in Revenue. In the last year, the revenue decreased by -3.56%.
The Revenue has been growing by 10.67% on average over the past years. This is quite good.
EPS 1Y (TTM)-17.37%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%-35.29%
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%-4.4%
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 7.58% on average per year.
Based on estimates for the next years, POOL will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
EPS Next Y2.15%
EPS Next 2Y6.34%
EPS Next 3Y7.58%
EPS Next 5YN/A
Revenue Next Year1.41%
Revenue Next 2Y3.13%
Revenue Next 3Y3.6%
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 29.04, POOL can be considered very expensive at the moment.
61.11% of the companies in the same industry are cheaper than POOL, based on the Price/Earnings ratio.
POOL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.22.
The Price/Forward Earnings ratio is 24.04, which indicates a rather expensive current valuation of POOL.
Based on the Price/Forward Earnings ratio, POOL is valued a bit cheaper than 72.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, POOL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 24.04 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as POOL.
Based on the Price/Free Cash Flow ratio, POOL is valued a bit cheaper than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.76 | ||
| EV/EBITDA | 19.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates POOL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of POOL may justify a higher PE ratio.
PEG (NY)13.52
PEG (5Y)2.43
EPS Next 2Y6.34%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
POOL has a Yearly Dividend Yield of 1.69%. 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 2.66.
POOL's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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 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
POOL pays out 44.83% 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.
DP44.83%
EPS Next 2Y6.34%
EPS Next 3Y7.58%
306.69
+10.34 (+3.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst Owners100.42%
Inst Owner Change0.05%
Ins Owners2.95%
Ins Owner Change-7.56%
Market Cap11.53B
Analysts74
Price Target353.63 (15.31%)
Short Float %8.8%
Short Ratio6.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend4.72
Dividend Growth(5Y)17.54%
DP44.83%
Div Incr Years14
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.92%
Min EPS beat(2)-14.64%
Max EPS beat(2)6.79%
EPS beat(4)2
Avg EPS beat(4)-1.53%
Min EPS beat(4)-14.64%
Max EPS beat(4)6.79%
EPS beat(8)4
Avg EPS beat(8)-0.56%
EPS beat(12)5
Avg EPS beat(12)-2.84%
EPS beat(16)9
Avg EPS beat(16)4%
Revenue beat(2)1
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-4.58%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-4.58%
Max Revenue beat(4)0.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-3%
Revenue beat(16)6
Avg Revenue beat(16)-1.21%
PT rev (1m)-5.28%
PT rev (3m)-9.24%
EPS NQ rev (1m)1.07%
EPS NQ rev (3m)-16.68%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-6.14%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-4.34%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.04 | ||
| Fwd PE | 24.04 | ||
| P/S | 2.19 | ||
| P/FCF | 23.76 | ||
| P/OCF | 21.31 | ||
| P/B | 9.31 | ||
| P/tB | 45.99 | ||
| EV/EBITDA | 19.18 |
EPS(TTM)10.56
EY3.44%
EPS(NY)12.76
Fwd EY4.16%
FCF(TTM)12.91
FCFY4.21%
OCF(TTM)14.39
OCFY4.69%
SpS139.98
BVpS32.95
TBVpS6.67
PEG (NY)13.52
PEG (5Y)2.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.97% | ||
| ROE | 32.87% | ||
| ROCE | 22.94% | ||
| ROIC | 17.5% | ||
| ROICexc | 18.01% | ||
| ROICexgc | 29.91% | ||
| OM | 11.14% | ||
| PM (TTM) | 7.74% | ||
| GM | 29.44% | ||
| FCFM | 9.22% |
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-Score4
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.2 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 119.29% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.5% | ||
| Profit Quality | 119.18% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | N/A |
F-Score4
WACC11.09%
ROIC/WACC1.58
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)-17.37%
EPS 3Y-10.87%
EPS 5Y11.97%
EPS Q2Q%-35.29%
EPS Next Y2.15%
EPS Next 2Y6.34%
EPS Next 3Y7.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.56%
Revenue growth 3Y0.1%
Revenue growth 5Y10.67%
Sales Q2Q%-4.4%
Revenue Next Year1.41%
Revenue Next 2Y3.13%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
EBIT growth 1Y-17.4%
EBIT growth 3Y-9.41%
EBIT growth 5Y12.59%
EBIT Next Year10.98%
EBIT Next 3Y9.02%
EBIT Next 5YN/A
FCF growth 1Y-34.97%
FCF growth 3Y29.55%
FCF growth 5Y17.71%
OCF growth 1Y-32.06%
OCF growth 3Y28.11%
OCF growth 5Y17.15%