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Hayward Holdings (HAYW)
NYSE:HAYW
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Hayward Holdings
(NYSE:HAYW)
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Rating:73Outperform
Price Target:
$17.00
▲(3.98% Upside)
Hayward Holdings' strong financial performance and positive earnings call outlook are the most significant factors driving its score. The company's robust balance sheet and effective debt reduction enhance its financial stability. While technical indicators suggest some short-term weakness, the overall outlook remains positive due to strategic initiatives and improved guidance. The valuation is moderate, with no dividend yield, which slightly tempers the overall attractiveness.
Positive Factors
Revenue Growth
The 7% increase in net sales reflects strong demand and effective pricing strategies, indicating robust market position and growth potential.
Margin Expansion
Improved gross profit margins suggest enhanced operational efficiency and cost management, supporting long-term profitability.
Financial Flexibility
Lower leverage enhances financial stability and flexibility, allowing for strategic investments and resilience against economic fluctuations.
Negative Factors
Revenue Growth Fluctuations
Inconsistent revenue growth can indicate market volatility or operational challenges, potentially impacting long-term strategic planning.
New Pool Construction Costs
High construction costs may limit market expansion and consumer adoption, affecting future sales growth in new pool installations.
Competitive Pressure
Rising competition from offshore players could pressure pricing and margins, challenging Hayward's market share and profitability.
Hayward Holdings (HAYW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.57B
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)26.3
Beta (1Y)0.89
Revenue Growth9.66%
EPS Growth44.17%
CountryUS
Employees1,934
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.14
Shares Outstanding216,863,240
10 Day Avg. Volume1,714,293
30 Day Avg. Volume1,470,311
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)2.31
Price to Sales (P/S)3.13
P/FCF Ratio17.51
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue3.55
Enterprise Value/Gross Profit7.23
Enterprise Value/Ebitda13.27
Forecast
1Y Price Target
$17.00Price Target Upside3.98% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hayward Holdings Business Overview & Revenue Model
Company DescriptionHayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers residential and commercial pool equipment, including pumps, filters, heaters, automatic pool cleaners, LED lighting, Internet of things enabled controls, alternate sanitizers, and water features. It sells its products through specialty distributors, retailers, and buying groups. Hayward Holdings, Inc. was founded in 1925 and is headquartered in Charlotte, North Carolina.
How the Company Makes MoneyHayward generates revenue through the sale of its extensive range of pool and spa equipment and accessories. Its core revenue streams include the direct sale of products to pool builders, retailers, and distributors. The company also benefits from a growing demand for energy-efficient and smart pool solutions, which has led to increased sales of its advanced control systems and automation products. Additionally, Hayward has established strategic partnerships with various distributors and retailers, enhancing its market reach and driving sales growth. The company may also see revenue from after-sales services and support, further contributing to its overall earnings.
Hayward Holdings Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong revenue and EBITDA growth, successful margin expansion, and increased guidance for the full year. The company demonstrated strong execution in technology adoption and tariff mitigation. However, there are challenges related to weather event comparisons, new pool construction costs, and increased competition. Despite these challenges, the positive aspects significantly outweigh the negative trends.Q3-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Net sales increased 7% to $244 million, driven by a 5% increase in net price and a 2% increase in volume. Adjusted EBITDA increased 16% to $59 million, with an adjusted EBITDA margin increase of 170 basis points to 24.2%.
Margin Expansion and Financial Flexibility
Gross profit margin increased 150 basis points to 51.2%. Cash flow generation was strong, enabling a reduction in net leverage to 1.8x, the lowest level in nearly 4 years, providing enhanced financial flexibility.
Increased Full-Year Guidance
Raised full-year guidance for net sales to increase by 4% to 5.5% and adjusted EBITDA to increase by 5% to 7%, with a range of $292 million to $297 million.
Technology Adoption and Product Innovation
Double-digit growth in omni controls product category, nearly twice the overall growth rate. Continued investment in advanced engineering and product development.
Successful Tariff Mitigation Efforts
Aggressive execution of tariff mitigation plans, including reducing direct sourcing from China from 10% to 3% by year-end.
Negative Updates
Impact of Weather Events on Previous Year Comparisons
Fourth quarter of the previous year was boosted by two major hurricanes, which is not expected to repeat, presenting a headwind for the current year's fourth quarter.
Challenges in New Pool Construction
New pool construction remains expensive, with entry-level consumers staying on the sidelines due to higher interest rates and costs.
Pressure from Private Label and Offshore Competitors
Increasing competition from lower-priced offshore competitors, influenced by inflation and tariffs, although the company remains confident in its value proposition.
Company Guidance
During Hayward Holdings' third quarter 2025 earnings call, the company provided an optimistic outlook, raising its full-year guidance based on strong performance and strategic initiatives. Net sales increased by 7% year-over-year to $244 million, with a 5% rise in net pricing and a 2% volume increase. The adjusted EBITDA grew by 16% to $59 million, enhancing the adjusted EBITDA margin by 170 basis points to 24.2%. Gross profit margin improved by 150 basis points to 51.2%. The company also reported a reduction in net leverage to 1.8x, offering greater financial flexibility. Hayward anticipates full-year net sales growth of 4% to 5.5% and expects adjusted EBITDA to rise by 5% to 7%, reaching $292 million to $297 million. These results were bolstered by successful tariff mitigation strategies and strong aftermarket demand.Hayward Holdings Financial Statement Overview
Summary
Hayward Holdings demonstrates strong financial performance with solid profitability, a stable balance sheet, and improving cash flow generation. The company has effectively reduced its debt, enhancing financial stability. While revenue growth has been inconsistent, recent trends are positive. The company is well-positioned in its industry, with a strong capital structure and efficient operations.Income Statement
Hayward Holdings shows a solid performance in its income statement with a TTM gross profit margin of 51.31% and a net profit margin of 12.54%, indicating strong profitability. The revenue growth rate of 1.55% in the TTM period reflects a positive trend compared to the previous year. However, the company has experienced fluctuations in revenue growth over the years, which could be a concern. Overall, the company maintains healthy EBIT and EBITDA margins, showcasing operational efficiency.Balance Sheet
The balance sheet of Hayward Holdings is robust, with a low debt-to-equity ratio of 0.0088 in the TTM period, indicating minimal leverage and financial stability. The return on equity of 9.37% is decent, reflecting effective utilization of equity. The equity ratio is strong, suggesting a solid capital structure. The company has significantly reduced its debt over the years, enhancing its financial health.Cash Flow
The cash flow statement shows a positive trajectory with a TTM free cash flow growth rate of 17.10%, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.84 suggests good cash conversion from earnings. However, the free cash flow to net income ratio of 0.88 indicates that not all earnings are being converted into free cash flow, which could be an area for improvement.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.09B | 1.05B | 992.45M | 1.31B | 1.40B | 875.40M |
| Gross Profit | 536.11M | 501.96M | 446.59M | 564.91M | 623.13M | 359.10M |
| EBITDA | 292.14M | 278.89M | 243.37M | 343.07M | 362.21M | 188.10M |
| Net Income | 137.89M | 118.66M | 80.69M | 179.35M | 203.72M | 43.30M |
Balance Sheet | ||||||
| Total Assets | 3.04B | 2.99B | 2.95B | 2.88B | 2.98B | 2.61B |
| Cash, Cash Equivalents and Short-Term Investments | 448.33M | 196.59M | 203.10M | 56.18M | 265.80M | 114.86M |
| Total Debt | 970.95M | 975.39M | 1.16B | 1.11B | 992.83M | 1.30B |
| Total Liabilities | 1.51B | 1.57B | 1.63B | 1.65B | 1.61B | 1.80B |
| Stockholders Equity | 1.52B | 1.42B | 1.31B | 1.22B | 1.37B | 803.76M |
Cash Flow | ||||||
| Free Cash Flow | 191.71M | 187.78M | 153.55M | 86.32M | 162.25M | 198.20M |
| Operating Cash Flow | 219.28M | 212.07M | 184.54M | 115.94M | 189.39M | 213.80M |
| Investing Cash Flow | -41.30M | -54.13M | -55.38M | -92.57M | -48.78M | -13.00M |
| Financing Cash Flow | -21.86M | -136.79M | -7.61M | -229.24M | 10.96M | -135.10M |
Hayward Holdings Technical Analysis
Positive
16.35
Price Trends
15.99
Positive
15.76
Positive
14.91
Positive
Market Momentum
0.05
Negative
58.30
Neutral
94.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAYW, the sentiment is Positive. The current price of 16.35 is above the 20-day moving average (MA) of 15.93, above the 50-day MA of 15.99, and above the 200-day MA of 14.91, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 94.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HAYW.
Hayward Holdings Risk Analysis
Hayward Holdings disclosed 48 risk factors in its most recent earnings report. Hayward Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hayward Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $5.84B | 18.50 | 18.22% | 0.67% | 6.17% | 20.86% | |
78 Outperform | $4.44B | 24.60 | 32.17% | 0.32% | 9.08% | 19.86% | |
73 Outperform | $3.57B | 26.32 | 9.52% | ― | 9.66% | 44.17% | |
69 Neutral | $1.15B | 30.98 | 8.33% | 0.35% | 15.93% | 12.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $4.95B | -1.93 | ― | ― | 324.10% | -214.91% | |
52 Neutral | $2.27B | -129.94 | -1.11% | 2.02% | -10.98% | -103.99% |
* Industrials Sector Average
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9.88%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.