Pool (POOL) AI Stock Analysis

• Market Cap: $13.70B
• Dividend Yield: 1.29%
• Average Volume (3M): 438.61K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 1.12
• Revenue Growth: -4.16%
• EPS Growth: -15.44%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial Equipment Distributors
• EPS (TTM): 11.29
• Shares Outstanding: 37,630,466
• 10 Day Avg. Volume: 491,754
• 30 Day Avg. Volume: 438,608
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.58
• Price to Cash Flow (P/CF): 20.10
• P/FCF Ratio: 21.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $362.00
• Price Target Upside: -0.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Pool Corporation demonstrates strong cash flow and profitability, which provides resilience despite challenges in revenue growth and new pool construction. Technical indicators suggest moderate momentum, although valuation concerns remain due to a high P/E ratio. The earnings call confirms a stable outlook with some headwinds, resulting in a balanced overall score.

Positive Factors

Growth Initiatives

Pool sounded confident that initiatives like POOL360 and new branches would drive share gains.

Negative Factors

Earnings Guidance

Management initiated 2025 adjusted EPS guidance of $11.08-$11.58, below consensus of $11.94, indicating a less optimistic outlook for earnings.

Stock Valuation

The price objective for the stock is set at $325, which is lower than the current price of $344.32, suggesting potential downside.

Pool Business Overview & Revenue Model

Company Description

Pool Corporation (POOL) is a leading wholesale distributor of swimming pool supplies, equipment, and related leisure products. The company operates primarily within the outdoor and leisure sector, focusing on providing a comprehensive range of products for residential and commercial pool and outdoor living spaces. Pool Corporation offers a wide array of products, including chemicals, equipment, parts, and accessories, servicing a network of approximately 410 sales centers across North America, Europe, and Australia.

How the Company Makes Money

Pool Corporation generates revenue through the distribution and sale of swimming pool and outdoor living products. The company sources products from a wide range of manufacturers and sells them to a diverse customer base, including pool builders, retail stores, and service companies. Its revenue streams are primarily driven by sales of non-discretionary pool maintenance products like chemicals and parts, as well as discretionary products such as pool equipment and outdoor living goods. The company benefits from strong supplier relationships and a vast distribution network, ensuring efficient delivery and availability of products. Additionally, Pool Corporation capitalizes on the consistent demand for pool maintenance supplies, as well as growth trends in outdoor living and swimming pool installations.

Pool Financial Statement Overview

Summary

Pool Corporation demonstrates strong profitability and cash flow generation, supported by a solid balance sheet with reduced leverage. The company's decline in revenue growth is a concern, but effective cost management and cash flow generation offer resilience.

Income Statement

Pool has shown a decline in revenue from 2022 to 2024, indicating a negative revenue growth trend. Despite this, the company maintains a healthy gross profit margin and EBIT margin, though these metrics have also seen a slight decrease over the years. The net profit margin has held relatively steady, suggesting effective cost management. Overall, while profitability remains robust, the declining revenue trend is a concern.

Balance Sheet

The company's balance sheet shows a strong equity position, with a stable equity ratio over the years. The debt-to-equity ratio has significantly improved from 2022 to 2024, indicating reduced leverage and financial risk. Return on equity has remained stable, reflecting consistent shareholder value creation. However, the decrease in total assets and liabilities suggests a contraction in business operations, which could pose future risks.

Cash Flow

Pool demonstrates strong cash flow management, with free cash flow remaining positive and showing growth from 2022 to 2024. The operating cash flow to net income ratio indicates effective conversion of earnings into cash. The free cash flow to net income ratio further emphasizes the company's ability to generate cash relative to its earnings. While operating cash flow has decreased, efficient capital expenditure management has supported free cash flow growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.31B	5.54B	6.18B	5.30B	3.94B
	Gross Profit
1.58B	1.66B	1.93B	1.62B	1.13B
	EBIT
617.20M	747.12M	1.03B	832.78M	464.03M
	EBITDA
662.68M	786.71M	1.06B	862.81M	493.43M
	Net Income Common Stockholders
434.32M	523.23M	748.46M	650.62M	366.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.86M	66.54M	45.59M	24.32M	34.13M
	Total Assets
3.37B	3.43B	3.57B	3.23B	1.74B
	Total Debt
1.27B	1.36B	1.66B	1.43B	623.84M
	Net Debt
1.19B	1.30B	1.62B	1.40B	589.71M
	Total Liabilities
2.09B	2.12B	2.33B	2.16B	1.10B
	Stockholders Equity
1.27B	1.31B	1.24B	1.07B	639.47M
Cash Flow		Free Cash Flow
599.71M	828.13M	441.24M	275.83M	375.88M
	Operating Cash Flow
659.19M	888.23M	484.85M	313.49M	397.58M
	Investing Cash Flow
-66.17M	-71.60M	-50.87M	-849.61M	-146.29M
	Financing Cash Flow
-576.55M	-798.13M	-411.66M	526.13M	-244.37M

Pool Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 364.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POOL, the sentiment is Positive. The current price of 364.12 is above the 20-day moving average (MA) of 345.45, above the 50-day MA of 344.09, and above the 200-day MA of 350.13, indicating a bullish trend. The MACD of 3.39 indicates Negative momentum. The RSI at 66.36 is Neutral, neither overbought nor oversold. The STOCH value of 86.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POOL.

Pool Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JCI	75 Outperform	$51.44B	30.57	9.80%	1.85%	-4.53%	-14.72%
AWI	71 Outperform	$6.26B	24.84	39.28%	0.77%	11.62%	20.76%
POOL	67 Neutral	$13.70B	32.23	33.41%	1.29%	-4.16%	-15.44%
HAYW	66 Neutral	$3.12B	27.02	8.68%	―	5.96%	45.69%
Sector *	62 Neutral	$8.27B	12.81	0.55%	3.01%	3.90%	-15.60%
MAS	60 Neutral	$15.67B	20.04	-118.61%	1.57%	-1.74%	-6.91%
WHR	47 Neutral	$5.24B	13.03	-12.77%	7.38%	-14.64%	-167.22%

Pool Corporate Events

Pool Corporation Declares Quarterly Cash Dividend

On February 26, 2025, Pool Corporation announced that its Board of Directors declared a quarterly cash dividend of $1.20 per share, payable on March 26, 2025, to shareholders of record as of March 12, 2025. This decision reflects the company’s ongoing commitment to delivering shareholder value and may impact its financial performance and investor relations positively.

Pool Corporation Reports 2024 Financial Results Amid Challenges

Pool Corporation reported its 2024 financial results, with net sales of $5.3 billion and operating income of $617.2 million, despite a challenging economic environment. The company saw a 4% decline in net sales compared to 2023, attributed to reduced spending on discretionary products. However, its strategic initiatives, including the expansion of its digital ecosystem and sales centers, helped maintain a solid operating margin. Looking forward to 2025, Pool Corporation anticipates earnings per share to be between $11.08 and $11.58, bolstered by ongoing industry trends and strong operational foundations.