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Pool (POOL)
NASDAQ:POOL
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Pool (POOL) AI Stock Analysis

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POOL

Pool

(NASDAQ:POOL)

Rating:70Outperform
Price Target:
$359.00
▲(10.01%Upside)
POOL's overall score reflects a stable financial position with strategic initiatives to boost shareholder value. However, challenges in revenue growth and profitability, coupled with mixed technical indicators and a high valuation, present risks. Positive corporate events and digital expansion provide potential upside.
Positive Factors
Financial Performance
Shares are trading up 1% following an in-line quarter and better-than-feared full-year guidance cut.
Market Position
Pool is taking market share due to initiatives.
Operational Efficiency
Gross margin in line with expectations was a key positive, with supply chain initiatives and pricing offsetting negative product and customer mix.
Negative Factors
Growth Outlook
There is a weaker growth outlook due to elevated competition, leading to a lowered price objective.
Interest Rates
The pool market remains challenged due to high interest rates.
Revenue Decline
The company's revenues declined due to lower sales in building materials, equipment, and specific regional segments.

Pool (POOL) vs. SPDR S&P 500 ETF (SPY)

Pool Business Overview & Revenue Model

Company DescriptionPool Corporation (POOL) is a leading wholesale distributor of swimming pool supplies, equipment, and related leisure products. Operating primarily in North America, Europe, and Australia, the company caters to a diverse customer base that includes pool builders, retail stores, and service companies. Pool Corporation offers an extensive range of products, including chemicals, equipment, cleaning devices, and pool accessories, while also providing value-added services such as technical support and training.
How the Company Makes MoneyPool Corporation generates revenue through the distribution and sale of swimming pool supplies and related products. The company operates a vast network of distribution centers and leverages a robust supply chain to efficiently deliver products to its customers. Key revenue streams include sales to professional pool builders and retailers, who rely on Pool Corporation for a consistent supply of high-quality products. Additionally, the company benefits from strong relationships with manufacturers, allowing it to offer a wide variety of products and exclusive brands. Seasonal demand, particularly in warmer months, and the ongoing maintenance needs of swimming pools contribute to consistent revenue generation. Partnerships with industry leaders and a focus on expanding its geographical reach further enhance Pool Corporation's ability to drive sales and profitability.

Pool Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: 3.00%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with both positive and negative aspects. While there was commendable growth in maintenance products and certain regional markets, challenges persist in new pool construction and larger renovation projects. The company showed resilience in maintaining stable gross margins and expanding digital platform adoption. However, the lowered EPS guidance and regional sales declines indicate ongoing market pressures.
Q2-2025 Updates
Positive Updates
Positive Sales Growth
POOLCORP reported $1.8 billion in net sales for Q2 2025, up 1% from the previous year, indicating solid execution in strategic areas.
Strong Performance in Maintenance Products
Maintenance products, including private label chemical products, performed well, reflecting strong growth.
Regional Growth in Florida and Arizona
Florida and Arizona each delivered solid 2% sales growth for the quarter, driven by ongoing population growth and favorable weather patterns.
European Market Performance
Net sales in Europe increased 2% in local currency and 7% in U.S. dollars, showing positive trends in most European economies.
Gross Margin Stability
The business maintained a solid 30% gross margin for the quarter, consistent with the same period last year.
Digital Innovation and Platform Adoption
POOL360 platform transactions now represent 17% of net sales, up from 14.5% last year, reflecting strong customer adoption.
Negative Updates
Challenges in New Pool Construction
Macro uncertainties and no signs of interest rate easing continue to pressure new pool construction and larger renovation projects.
Texas and California Sales Decline
Texas and California saw challenges in new pool construction with sales down 2% and 3%, respectively, due to macroeconomic headwinds.
Horizon Segment Sales Decline
Net sales for Horizon declined 2% in the quarter, with weakness in larger development-related construction projects.
Lowered EPS Guidance
POOLCORP updated its diluted EPS guidance for the year to a range of $10.80 to $11.30, down from previous expectations.
Company Guidance
During the Pool Corporation Second Quarter 2025 Conference Call, the company reported net sales of $1.8 billion, marking a 1% increase from the previous year. The company maintained a stable gross margin of 30%, consistent with the same period last year. Regionally, sales growth of 2% was highlighted in Florida and Arizona, while Texas and California saw sales declines of 2% and 3%, respectively. In Europe, net sales increased by 2% in local currency and 7% in U.S. dollars. The company also updated its diluted earnings per share guidance for the year to a range of $10.80 to $11.30. Despite challenges, the company demonstrated strong performance in maintenance products and private label chemical sales, while construction-related sales saw improving trends. The POOL360 platform's transactions now account for 17% of net sales, up from 14.5% last year.

Pool Financial Statement Overview

Summary
POOL's financial performance shows challenges with declining revenue and profit margins, though it maintains a stable balance sheet and positive cash flows. The company faces pressure on profitability with negative revenue growth and reduced net income, but manages moderate leverage and efficient cash generation.
Income Statement
65
Positive
The income statement reflects declining revenue and profit margins over recent periods. TTM data shows a decrease in total revenue, gross profit, EBIT, and net income compared to previous years. Gross Profit Margin and Net Profit Margin have also decreased in TTM, indicating pressure on profitability. Revenue growth has been negative, highlighting a challenging market environment for Pool.
Balance Sheet
70
Positive
The balance sheet shows a stable equity position, with a consistent Debt-to-Equity ratio, which indicates moderate leverage. The Equity Ratio remains healthy, although there has been a slight increase in total debt. Return on Equity has decreased in recent periods, reflecting the impact of declining net income on shareholder returns.
Cash Flow
75
Positive
The company has maintained positive operating cash flows, although there has been a decrease in free cash flow growth rate in the TTM period. The Operating Cash Flow to Net Income Ratio remains strong, indicating efficient cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio has declined, suggesting tighter cash flow management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.31B5.54B6.18B5.30B3.94B
Gross Profit1.58B1.66B1.93B1.62B1.13B
EBITDA662.68M786.71M1.06B862.81M493.43M
Net Income434.32M523.23M748.46M650.62M366.74M
Balance Sheet
Total Assets3.37B3.43B3.57B3.23B1.74B
Cash, Cash Equivalents and Short-Term Investments77.86M66.54M45.59M24.32M34.13M
Total Debt1.27B1.36B1.66B1.43B623.84M
Total Liabilities2.09B2.12B2.33B2.16B1.10B
Stockholders Equity1.27B1.31B1.24B1.07B639.47M
Cash Flow
Free Cash Flow599.71M828.13M441.24M275.83M375.88M
Operating Cash Flow659.19M888.23M484.85M313.49M397.58M
Investing Cash Flow-66.17M-71.60M-50.87M-849.61M-146.29M
Financing Cash Flow-576.55M-798.13M-411.66M526.13M-244.37M

Pool Technical Analysis

Technical Analysis Sentiment
Positive
Last Price326.34
Price Trends
50DMA
302.38
Positive
100DMA
308.25
Positive
200DMA
330.35
Negative
Market Momentum
MACD
4.95
Negative
RSI
66.25
Neutral
STOCH
75.26
Neutral
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 326.34 is above the 20-day moving average (MA) of 304.17, above the 50-day MA of 302.38, and below the 200-day MA of 330.35, indicating a neutral trend. The MACD of 4.95 indicates Negative momentum. The RSI at 66.25 is Neutral, neither overbought nor oversold. The STOCH value of 75.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POOL.

Pool Risk Analysis

Pool disclosed 23 risk factors in its most recent earnings report. Pool reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Pool Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$19.64B37.4018.91%2.35%3.92%1.09%
76
Outperform
$44.11B28.4329.28%1.47%2.32%-12.51%
75
Outperform
$12.85B30.2125.11%10.80%0.98%
73
Outperform
$10.21B26.7822.23%0.62%0.50%4.48%
70
Outperform
$12.27B29.2330.09%1.49%-1.71%-8.68%
66
Neutral
$5.88B52.047.64%4.73%-27.46%
58
Neutral
HK$14.94B4.62-2.78%5.07%3.80%-54.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
POOL
Pool
324.90
-41.60
-11.35%
AIT
Applied Industrial Technologies
272.13
58.62
27.46%
WSO
Watsco
489.97
-8.87
-1.78%
SITE
SiteOne Landscape Supply
132.76
-12.74
-8.76%
CNM
Core & Main
65.77
12.24
22.87%
FERG
Ferguson PLC
224.07
9.35
4.35%

Pool Corporate Events

Business Operations and StrategyFinancial Disclosures
Pool Corporation Reports Q2 2025 Financial Results
Positive
Jul 24, 2025

On July 24, 2025, Pool Corporation reported its second quarter results, showing a 1% increase in net sales to $1.8 billion compared to the same period in 2024, driven by strong execution of strategic initiatives. The company achieved a gross margin of 30.0% and an operating income of $272.7 million. Despite a constrained market environment, Pool Corporation updated its annual earnings guidance to $10.80 – $11.30 per diluted share, reflecting confidence in its strategic initiatives and the strength of the outdoor living industry.

The most recent analyst rating on (POOL) stock is a Hold with a $360.00 price target. To see the full list of analyst forecasts on Pool stock, see the POOL Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Pool Corporation Amends Credit Agreement for Flexibility
Positive
Jul 14, 2025

On July 10, 2025, Pool Corporation entered into a Fourth Amended and Restated Credit Agreement, which involved refinancing a $500 million term loan, extending its maturity to September 30, 2029, and removing a Term SOFR adjustment. The agreement maintains an $800 million unsecured revolving credit facility and includes features like an accordion feature for additional loans and the option to extend the maturity date. Additionally, Pool Corporation executed a Fourth Amendment to a separate Credit Agreement, aligning its maturity with the new agreement. These financial adjustments aim to enhance the company’s liquidity and financial flexibility, potentially impacting its operations and market positioning.

The most recent analyst rating on (POOL) stock is a Hold with a $360.00 price target. To see the full list of analyst forecasts on Pool stock, see the POOL Stock Forecast page.

Shareholder MeetingsStock BuybackDividends
Pool Corporation Increases Share Repurchase and Dividend
Positive
Apr 30, 2025

On April 30, 2025, Pool Corporation held its Annual Meeting of Stockholders where nine directors were elected for a one-year term, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year 2025. The company also announced an increase in its share repurchase program to $600 million and a 4% rise in its quarterly cash dividend to $1.25 per share, reflecting the Board’s commitment to returning capital to shareholders. These strategic moves are expected to enhance Pool Corporation’s market position and shareholder value.

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.Date of analysis: Jul 25, 2025