POOL CORP (SP1.DE) Stock Fundamental Analysis
FRA:SP1 - Deutsche Boerse Ag - US73278L1052 - Common Stock - Currency: EUR
SP1 gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 3 industry peers in the Distributors industry. SP1 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SP1 is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make SP1 suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year SP1 was profitable.
In the past year SP1 had a positive cash flow from operations.
Each year in the past 5 years SP1 has been profitable.
SP1 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 21.89%, SP1 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SP1's Return On Equity of 67.27% is amongst the best of the industry. SP1 outperforms 100.00% of its industry peers.
SP1 has a Return On Invested Capital of 31.42%. This is amongst the best in the industry. SP1 outperforms 100.00% of its industry peers.
SP1 had an Average Return On Invested Capital over the past 3 years of 27.46%. This is significantly above the industry average of 5.93%.
The last Return On Invested Capital (31.42%) for SP1 is above the 3 year average (27.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.89% | ||
| ROE | 67.27% | ||
| ROIC | 31.42% |
ROA(3y)20.7%
ROA(5y)19.73%
ROE(3y)59.44%
ROE(5y)69.4%
ROIC(3y)27.46%
ROIC(5y)26.5%
1.3 Margins
With an excellent Profit Margin value of 11.45%, SP1 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SP1 has grown nicely.
SP1's Operating Margin of 15.87% is amongst the best of the industry. SP1 outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of SP1 has grown nicely.
With a decent Gross Margin value of 31.18%, SP1 is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of SP1 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.87% | ||
| PM (TTM) | 11.45% | ||
| GM | 31.18% |
OM growth 3Y15.91%
OM growth 5Y10.24%
PM growth 3Y13.78%
PM growth 5Y11.88%
GM growth 3Y2.67%
GM growth 5Y1.61%
2. Health
2.1 Basic Checks
SP1 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SP1 has less shares outstanding
SP1 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.47 indicates that SP1 is not in any danger for bankruptcy at the moment.
SP1's Altman-Z score of 6.47 is amongst the best of the industry. SP1 outperforms 100.00% of its industry peers.
SP1 has a debt to FCF ratio of 1.83. This is a very positive value and a sign of high solvency as it would only need 1.83 years to pay back of all of its debts.
SP1 has a better Debt to FCF ratio (1.83) than 100.00% of its industry peers.
SP1 has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
SP1's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. SP1 is outperformed by 80.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for SP1, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 6.47 |
ROIC/WACC3.85
WACC8.16%
2.3 Liquidity
A Current Ratio of 2.36 indicates that SP1 has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.36, SP1 is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
SP1 has a Quick Ratio of 2.36. This is a bad value and indicates that SP1 is not financially healthy enough and could expect problems in meeting its short term obligations.
SP1's Quick ratio of 0.63 is on the low side compared to the rest of the industry. SP1 is outperformed by 80.00% of its industry peers.
SP1 does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.63 |
3. Growth
3.1 Past
SP1 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.24%.
SP1 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.11% yearly.
SP1 shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.79%.
SP1 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.25% yearly.
EPS 1Y (TTM)-5.24%
EPS 3Y42.27%
EPS 5Y35.11%
EPS Q2Q%-39.01%
Revenue 1Y (TTM)30.79%
Revenue growth 3Y24.54%
Revenue growth 5Y17.25%
Sales Q2Q%-14.57%
3.2 Future
SP1 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.86% yearly.
SP1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.20% yearly.
EPS Next Y-14.55%
EPS Next 2Y-1.77%
EPS Next 3Y0.86%
EPS Next 5YN/A
Revenue Next Year-5.49%
Revenue Next 2Y-0.48%
Revenue Next 3Y1.2%
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
Based on the Price/Earnings ratio of 19.23, the valuation of SP1 can be described as rather expensive.
SP1's Price/Earnings ratio is in line with the industry average.
SP1's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.17.
The Price/Forward Earnings ratio is 18.14, which indicates a rather expensive current valuation of SP1.
Based on the Price/Forward Earnings ratio, SP1 is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of SP1 to the average of the S&P500 Index (22.10), we can say SP1 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 18.14 |
4.2 Price Multiples
SP1's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SP1 indicates a somewhat cheap valuation: SP1 is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.91 | ||
| EV/EBITDA | 11.52 |
4.3 Compensation for Growth
The excellent profitability rating of SP1 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-1.77%
EPS Next 3Y0.86%
5. Dividend
5.1 Amount
SP1 has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
The stock price of SP1 dropped by -24.82% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
SP1's Dividend Yield is comparable with the industry average which is at 2.33.
Compared to an average S&P500 Dividend Yield of 2.40, SP1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
On average, the dividend of SP1 grows each year by 21.65%, which is quite nice.
Dividend Growth(5Y)21.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SP1 pays out 18.64% of its income as dividend. This is a sustainable payout ratio.
The dividend of SP1 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.64%
EPS Next 2Y-1.77%
EPS Next 3Y0.86%
FRA:SP1 (6/2/2023, 7:00:00 PM)
299.8
-47.5 (-13.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryDistributors
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.70B
Analysts77.78
Price Target356.38 (18.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend3.8
Dividend Growth(5Y)21.65%
DP18.64%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.67%
Min EPS beat(2)-21.14%
Max EPS beat(2)-10.2%
EPS beat(4)1
Avg EPS beat(4)-7.42%
Min EPS beat(4)-21.14%
Max EPS beat(4)2.15%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-7.23%
Min Revenue beat(2)-8.37%
Max Revenue beat(2)-6.09%
Revenue beat(4)1
Avg Revenue beat(4)11.01%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)59.32%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.56%
PT rev (3m)4.56%
EPS NQ rev (1m)-9.14%
EPS NQ rev (3m)-9.14%
EPS NY rev (1m)-10.55%
EPS NY rev (3m)-10.55%
Revenue NQ rev (1m)-5.09%
Revenue NQ rev (3m)-5.09%
Revenue NY rev (1m)-3.74%
Revenue NY rev (3m)-3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 18.14 | ||
| P/S | 1.71 | ||
| P/FCF | 16.91 | ||
| P/OCF | 15.85 | ||
| P/B | 10.04 | ||
| P/tB | 48.57 | ||
| EV/EBITDA | 11.52 |
EPS(TTM)15.59
EY5.2%
EPS(NY)16.52
Fwd EY5.51%
FCF(TTM)17.73
FCFY5.91%
OCF(TTM)18.92
OCFY6.31%
SpS175.52
BVpS29.86
TBVpS6.17
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.89% | ||
| ROE | 67.27% | ||
| ROCE | N/A | ||
| ROIC | 31.42% | ||
| ROICexc | 31.71% | ||
| ROICexgc | 48.67% | ||
| OM | 15.87% | ||
| PM (TTM) | 11.45% | ||
| GM | 31.18% | ||
| FCFM | N/A |
ROA(3y)20.7%
ROA(5y)19.73%
ROE(3y)59.44%
ROE(5y)69.4%
ROIC(3y)27.46%
ROIC(5y)26.5%
ROICexc(3y)27.96%
ROICexc(5y)27.03%
ROICexgc(3y)41.92%
ROICexgc(5y)38.02%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y12.15%
ROICexcg growth 5Y1.41%
ROICexc growth 3Y4.06%
ROICexc growth 5Y-0.95%
OM growth 3Y15.91%
OM growth 5Y10.24%
PM growth 3Y13.78%
PM growth 5Y11.88%
GM growth 3Y2.67%
GM growth 5Y1.61%
F-Score6
Asset Turnover1.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 1.83 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 128.49% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 88.25% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 6.47 |
F-Score6
WACC8.16%
ROIC/WACC3.85
Cap/Depr(3y)103.67%
Cap/Depr(5y)107.65%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)68.06%
Profit Quality(5y)68.56%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.24%
EPS 3Y42.27%
EPS 5Y35.11%
EPS Q2Q%-39.01%
EPS Next Y-14.55%
EPS Next 2Y-1.77%
EPS Next 3Y0.86%
EPS Next 5YN/A
Revenue 1Y (TTM)30.79%
Revenue growth 3Y24.54%
Revenue growth 5Y17.25%
Sales Q2Q%-14.57%
Revenue Next Year-5.49%
Revenue Next 2Y-0.48%
Revenue Next 3Y1.2%
Revenue Next 5YN/A
EBIT growth 1Y25.1%
EBIT growth 3Y44.36%
EBIT growth 5Y29.26%
EBIT Next Year-13.05%
EBIT Next 3Y1.18%
EBIT Next 5YN/A
FCF growth 1Y72.4%
FCF growth 3Y18.46%
FCF growth 5Y26.56%
OCF growth 1Y74.98%
OCF growth 3Y17.51%
OCF growth 5Y22.56%