Pool (POOL) AI Stock Analysis

• Market Cap: $8.36B
• Dividend Yield: 2.15%
• Average Volume (3M): 843.00K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.60
• Revenue Growth: -0.60%
• EPS Growth: -5.99%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.84
• Shares Outstanding: 36,787,820
• 10 Day Avg. Volume: 1,152,075
• 30 Day Avg. Volume: 842,999
• PEG Ratio: -4.95
• Price to Book (P/B): 7.17
• Price to Sales (P/S): 1.61
• P/FCF Ratio: 27.46
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 5.42
• Enterprise Value/Ebitda: 13.50
• 1Y Price Target: $271.71
• Price Target Upside: 19.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 11.02
• Revenue Forecast (FY): $5.40B

• Rating: 59 Neutral
• Price Target: $224.00 ▼(-1.40% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back primarily by weakening recent financial trends (revenue declines, margin compression, and lower 2025 free cash flow) and clearly bearish technicals (below major moving averages with negative momentum). These are partially offset by improved leverage, a reasonable P/E with a supportive dividend yield, and 2026 guidance calling for modest growth with stable gross margin.

Positive Factors

Improved Balance Sheet & Capital Returns

Deleveraging in 2025 (material drop in leverage) and very strong ROE materially reduce financial risk and increase capital flexibility. This supports durable shareholder returns, opportunistic buybacks/M&A and the ability to fund seasonal working-capital swings without compromising operations.

Sustainable Gross Margin

Consistent ~30% gross margins—supported by pricing, supply-chain execution and private-label expansion—indicate structural pricing power and product-mix control. That resilience makes underlying profitability less sensitive to short-term volume swings and supports long-term margin sustainability.

Digital & Omnichannel Momentum

Rising digital penetration and POOL360 investments build a durable, lower-cost channel and deeper customer data. Omnichannel capabilities increase cross-sell, improve service economics, and reduce reliance on episodic field demand—strengthening competitive position over multiple seasons.

Negative Factors

Multi-year Revenue Declines & Margin Compression

Sustained revenue declines coupled with meaningful net-margin contraction reflect weakening end-market demand and reversed operating leverage. Over time, lower sales and compressed margins strain earnings power and limit the firm's ability to scale fixed-cost investments profitably.

Working-Capital Build and Cash-Flow Deterioration

A sizable inventory build funded partly with debt reduced cash conversion and drove a ~22% FCF decline. Elevated working-capital needs and higher debt increase interest exposure and limit financial flexibility, making the business more sensitive to seasonal and macro variability.

Rising Operating Expenses & Cost Pressures

Higher ongoing investments in technology, new sales centers and rising compensation are elevating SG&A. If top-line recovery lags, persistent expense inflation will pressure operating income and margins, reducing the payoff period for investments like POOL360 and physical expansion.

Pool Business Overview & Revenue Model

Company Description

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; pool equipment and components for new pool construction and the remodeling of existing pools; and irrigation and related products consisting of irrigation system components, and professional lawn care equipment and supplies. It also provides building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling; and commercial products, including heaters, safety equipment, and commercial pumps and filters. In addition, the company offers other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial customers that serve hotels, universities, and community recreational facilities. As of March 03, 2022, the company operated 410 sales centers in North America, Europe, and Australia. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.

How the Company Makes Money

Pool generates revenue primarily through the sale of pool and outdoor living products, including chemicals, equipment, and accessories. The company operates on a wholesale distribution model, supplying products to retailers and service companies, which constitutes a significant portion of its revenue. Additionally, Pool benefits from direct sales to consumers through its retail locations and e-commerce platform. Key revenue streams include seasonal sales of pool chemicals and equipment, maintenance and repair services, and exclusive partnerships with leading manufacturers in the pool industry, which may provide favorable pricing and product availability, enhancing its competitive advantage.

Pool Financial Statement Overview

Summary

Financials are mixed: profitability remains solid but has weakened (multi-year revenue declines and net margin compression to ~7.7% in 2025). Balance sheet risk improved with sharply lower leverage in 2025, but cash flow is in a downswing with 2025 free cash flow down ~22% year over year.

Income Statement

Profitability remains solid for a distributor, but the trajectory has weakened. Revenue declined in 2023–2025 (down ~10%, ~4%, then ~10%), and margins have compressed meaningfully from 2021–2022 highs (net margin ~12% in 2021–2022 to ~7.7% in 2025). Gross margin has been relatively steady (~29–31%), which suggests pricing/merchandising discipline, but operating leverage has worked in reverse as earnings fell from 2022 to 2025.

Balance Sheet

Balance sheet strength improved notably in 2025 with much lower leverage (debt-to-equity ~0.29 vs ~1.0–1.34 in 2021–2024), which reduces financial risk. Equity has grown versus 2020, and returns on equity remain very strong (~34% in 2024–2025), indicating efficient capital use. The key watch-out is that historically higher leverage (through 2024) means the company has been more cycle-sensitive, though the 2025 deleveraging is a clear positive.

Cash Flow

Cash generation is positive and free cash flow consistently tracks earnings well (free cash flow running at ~85–95% of net income across 2020–2025). However, cash flow has become more volatile recently: operating cash flow and free cash flow fell sharply in 2025 (free cash flow down ~22% year over year), and operating cash flow was relatively low compared with revenue in 2025 versus prior years. Overall, the cash profile is healthy but currently in a downswing alongside the earnings/revenue slowdown.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.29B	5.31B	5.54B	6.18B	5.30B
Gross Profit	1.57B	1.58B	1.66B	1.93B	1.62B
EBITDA	631.81M	662.68M	786.71M	1.06B	862.81M
Net Income	406.40M	434.32M	523.23M	748.46M	650.62M
Balance Sheet
Total Assets	3.63B	3.37B	3.43B	3.57B	3.23B
Cash, Cash Equivalents and Short-Term Investments	104.96M	77.86M	66.54M	45.59M	24.32M
Total Debt	348.61M	1.27B	1.36B	1.66B	1.43B
Total Liabilities	2.44B	2.09B	2.12B	2.33B	2.16B
Stockholders Equity	1.19B	1.27B	1.31B	1.24B	1.07B
Cash Flow
Free Cash Flow	309.52M	599.71M	828.13M	441.24M	275.83M
Operating Cash Flow	365.85M	659.19M	888.23M	484.85M	313.49M
Investing Cash Flow	-67.79M	-66.17M	-71.60M	-50.87M	-849.61M
Financing Cash Flow	-273.38M	-576.55M	-798.13M	-411.66M	526.13M

Pool Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 227.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POOL, the sentiment is Negative. The current price of 227.18 is below the 20-day moving average (MA) of 246.66, below the 50-day MA of 247.06, and below the 200-day MA of 280.86, indicating a bearish trend. The MACD of -9.37 indicates Positive momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 18.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POOL.

Pool Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSO	77 Outperform	$16.93B	34.07	17.00%	3.38%	-0.71%	-0.17%
AIT	72 Outperform	$10.54B	26.89	22.02%	0.70%	4.03%	5.93%
CNM	71 Outperform	$10.59B	23.78	23.85%	―	8.09%	6.33%
SITE	70 Outperform	$6.35B	42.45	8.37%	―	4.00%	-0.75%
WCC	66 Neutral	$14.09B	22.19	12.91%	0.72%	5.28%	1.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
POOL	59 Neutral	$8.36B	20.95	32.90%	2.15%	-0.60%	-5.99%

Pool Corporate Events

Pool Corporation Declares Quarterly Cash Dividend, Signals Confidence

On February 25, 2026, Pool Corporation announced that its board of directors declared a quarterly cash dividend of $1.25 per share, reinforcing its practice of returning capital to shareholders. The dividend is scheduled to be paid on March 26, 2026 to shareholders of record as of March 12, 2026, signaling confidence in the company’s cash generation and balance-sheet strength.

For investors and other stakeholders, the move underscores the stability of Pool Corporation’s wholesale distribution business in swimming pool and backyard products, supported by its network of approximately 455 sales centers serving about 125,000 wholesale customers. The announced payout highlights the company’s ongoing commitment to shareholder returns amid steady demand for pool-related products and services across its North American, European and Australian markets.

The most recent analyst rating on (POOL) stock is a Buy with a $280.00 price target. To see the full list of analyst forecasts on Pool stock, see the POOL Stock Forecast page.

Pool Corp Issues 2025 Results and 2026 EPS Outlook

On February 19, 2026, Pool Corporation reported that 2025 net sales were stable at $5.3 billion, with steady non‑discretionary demand and improving discretionary product trends in the second half of the year. Gross margin held at 29.7% but effectively improved by 20 basis points excluding a prior-year tariff reversal, while operating income fell 6% and net income declined to $406.4 million as higher technology, network expansion and wage costs weighed on profitability.

Earnings per diluted share slipped 4% to $10.85 for 2025, or $10.73 excluding tax benefits under ASU 2016‑09, reflecting modest margin gains offset by rising operating expenses. The company increased inventory 13% to $1.5 billion and total debt to $1.2 billion, largely to support price-driven purchasing, working capital and $341.1 million of share repurchases, and it issued 2026 EPS guidance of $10.85 to $11.15, signaling expectations for modest sales growth and improved earnings amid continued investment in its sales center network and digital platforms.

In the fourth quarter of 2025, net sales dipped 1% to $982.2 million, but gross margin improved 70 basis points to 30.1%, helped by pricing and supply chain discipline. However, operating expenses rose 6% due to higher employee and facility costs and technology spending, driving a 14% drop in operating income to $52.0 million and a 13% decline in diluted EPS to $0.85, underscoring near-term cost pressures even as Pool Corp seeks to reinforce its industry-leading position.

The most recent analyst rating on (POOL) stock is a Hold with a $275.00 price target. To see the full list of analyst forecasts on Pool stock, see the POOL Stock Forecast page.

Pool Corporation Announces Director Carlos Sabater’s Planned Exit

On February 12, 2026, Pool Corporation announced that director Carlos A. Sabater will not stand for re-election at the end of his current term, concluding his service following the company’s 2026 annual meeting of shareholders. The company stated that Sabater’s decision to step down from the board and from the audit, nominating and corporate governance and strategic planning committees was not due to any disagreement over its operations, policies or practices, suggesting an orderly transition in its governance structure.

The most recent analyst rating on (POOL) stock is a Hold with a $275.00 price target. To see the full list of analyst forecasts on Pool stock, see the POOL Stock Forecast page.

Pool Corporation Announces Leadership Transition and New EVP

On January 12, 2026, Pool Corporation announced that long-time Senior Vice President Kenneth “Kenny” G. St. Romain will retire from his position later in 2026 after more than 40 years with the company, remaining in his role in the interim to help ensure a smooth leadership transition. The company also appointed John B. Watwood as Executive Vice President effective January 12, 2026, tasking him with leading Pool Corporation’s North American swimming pool operations and overseeing digital and technology initiatives, a move that underscores the distributor’s focus on operational continuity, growth and innovation in its core markets.

The most recent analyst rating on (POOL) stock is a Buy with a $320.00 price target. To see the full list of analyst forecasts on Pool stock, see the POOL Stock Forecast page.