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Pool
(NASDAQ:POOL)
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Rating:65Neutral
Price Target:
$211.00
▼(-7.30% Downside)
Action:Reiterated
Date:07/23/26
The score is driven primarily by solid financial performance (meaningful profits and cash flow) but constrained by margin compression, higher leverage, and volatile recent free-cash-flow growth. Technicals are currently a headwind with the stock below key moving averages and weak momentum readings. Valuation is a modest support (reasonable P/E and a 2.57% dividend), while the earnings call was balanced—steady guidance but a slightly worse margin outlook due to freight and mix pressures.
Positive Factors
Distribution & Digital Platform
A broad branch network and rising digital penetration (POOL360 at 18% of sales) create durable competitive advantages: local inventory availability, faster fulfilment and higher switching costs for trade customers. Digital adoption deepens customer stickiness and improves margin mix over time as services scale.
Negative Factors
Margin Pressure — Freight & Customer Mix
Persistent inbound freight headwinds and an unfavorable customer mix have reduced gross margins by ~30 bps. Because pricing recoupment is limited, sustained logistics cost inflation or continued shift toward lower-margin large customers could meaningfully compress operating margins long term.
Read all positive and negative factors
Positive Factors
Negative Factors
Distribution & Digital Platform
A broad branch network and rising digital penetration (POOL360 at 18% of sales) create durable competitive advantages: local inventory availability, faster fulfilment and higher switching costs for trade customers. Digital adoption deepens customer stickiness and improves margin mix over time as services scale.
Read all positive factors
Pool Key Performance Indicators (KPIs)
Any
Number of Sales Centers
Counts Pool's customer-facing sales centers, revealing the company’s local reach and capacity to serve professional and retail customers. Growth in centers typically signals geographic expansion or acquisitions that can boost revenue and market share, while closures or flat counts can indicate market saturation, integration challenges, or cost-cutting; comparing center growth to same-center sales helps separate footprint-driven revenue from underlying demand.
Counts Pool's customer-facing sales centers, revealing the company’s local reach and capacity to serve professional and retail customers. Growth in centers typically signals geographic expansion or acquisitions that can boost revenue and market share, while closures or flat counts can indicate market saturation, integration challenges, or cost-cutting; comparing center growth to same-center sales helps separate footprint-driven revenue from underlying demand.
Data provided by:
The Fly
The FlyPool (POOL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.70B
Dividend Yield2.75%
Average Volume (3M)1.07M
Price to Earnings (P/E)16.9
Beta (1Y)0.57
Revenue Growth2.23%
EPS Growth0.42%
CountryUS
Employees6,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)10.89
Shares Outstanding36,443,005
10 Day Avg. Volume922,158
30 Day Avg. Volume1,065,826
Financial Highlights & Ratios
PEG Ratio-4.98
Price to Book (P/B)7.17
Price to Sales (P/S)1.61
P/FCF Ratio27.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$213.14Price Target Upside-6.36% Downside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)11.06
Revenue Forecast (FY)$5.43B
Pool Business Overview & Revenue Model
Company Description
Pool Corporation, established in 1993 and based in Covington, Louisiana, serves as a leading wholesale distributor of swimming pool essentials, outdoor living accessories, and related recreational merchandise. Operating extensively across the Unit...
How the Company Makes Money
Pool Corporation primarily makes money by selling pool and related outdoor-living products on a wholesale/distribution basis to trade customers. Its key revenue stream is product sales volume multiplied by gross margin, with major categories gener...
Pool Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 15, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced view: the company delivered modest top-line growth, continued digital and product-mix progress (POOL360 at 18%, building materials +4%, Europe +11%), maintained adjusted earnings guidance, and demonstrated disciplined expense and capital management. Offsetting these positives, gross margin and profitability were pressured by higher inbound freight and an unfavorable customer mix, chemicals and new-construction softness, and one-time CEO transition costs. Management expects freight headwinds to persist near term and revised the full-year margin outlook down ~30 basis points. Overall, the underlying business showed resilience, but meaningful margin and supply-chain challenges temper near-term upside.Positive Updates
Operational Execution and Network Discipline
Continued focus on greenfield ramping and network efficiency; opened 1 sales center and closed 1 Horizon location during the quarter, with improving performance at recently opened centers.
Negative Updates
Gross Margin Pressure from Higher Inbound Freight
Gross margin was 29.7%, down 30 basis points YoY; the company now expects full-year gross margin to be approximately 30 basis points below prior year primarily due to higher inbound freight that could not be fully recouped in selling price.
Read all updates
Q2-2026 Updates
Positive
Negative
Operational Execution and Network Discipline
Continued focus on greenfield ramping and network efficiency; opened 1 sales center and closed 1 Horizon location during the quarter, with improving performance at recently opened centers.
Read all positive updates
Company Guidance
Management reiterated full‑year guidance for low single‑digit net‑sales growth with roughly 2%–3% of that from pricing (pricing benefit expected to be lower in H2 and the year to finish nearer 2%), and kept adjusted diluted EPS guidance of $10.87–$11.17 (reported diluted EPS range revised to $10.66–$10.96 after a $0.21 per‑share one‑time CEO transition charge). They now expect full‑year gross margin ~30 basis points below last year (versus prior “in line”), adjusted operating expenses to rise ~2%–3% (weighted to Q3), interest expense of $49–$51 million, a full‑year tax rate of ~25% (lower in Q3), weighted average shares ~36.4 million, and cash from operations around 100% of net income. On balance sheet and capital allocation, they cited inventory of $1.4 billion (up ~4% Y/Y), total debt of $1.3 billion (leverage 1.78x and a weighted‑average effective rate of 4.3%), YTD dividends of $93 million, ~$86 million of repurchases YTD and $580 million remaining on a $600 million buyback authorization.Pool Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.39B | 5.29B | 5.31B | 5.54B | 6.18B | 5.30B |
| Gross Profit | 1.60B | 1.57B | 1.58B | 1.66B | 1.93B | 1.62B |
| EBITDA | 605.03M | 631.81M | 662.68M | 786.71M | 1.06B | 862.81M |
| Net Income | 399.92M | 406.40M | 434.32M | 523.23M | 748.46M | 650.62M |
Balance Sheet | ||||||
| Total Assets | 3.76B | 3.63B | 3.37B | 3.43B | 3.57B | 3.23B |
| Cash, Cash Equivalents and Short-Term Investments | 28.76M | 104.96M | 77.86M | 66.54M | 45.59M | 24.32M |
| Total Debt | 1.70B | 1.54B | 1.27B | 1.36B | 1.66B | 1.43B |
| Total Liabilities | 2.50B | 2.44B | 2.09B | 2.12B | 2.33B | 2.16B |
| Stockholders Equity | 1.26B | 1.19B | 1.27B | 1.31B | 1.24B | 1.07B |
Cash Flow | ||||||
| Free Cash Flow | 610.65M | 309.52M | 599.71M | 828.13M | 441.24M | 275.83M |
| Operating Cash Flow | 732.50M | 365.85M | 659.19M | 888.23M | 484.85M | 313.49M |
| Investing Cash Flow | -143.14M | -67.79M | -66.17M | -71.60M | -50.87M | -849.61M |
| Financing Cash Flow | -617.72M | -273.38M | -576.55M | -798.13M | -411.66M | 526.13M |
Pool Technical Analysis
Negative
227.62
Price Trends
194.53
Negative
201.21
Negative
225.87
Negative
Market Momentum
-2.42
Positive
33.80
Neutral
11.98
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 227.62 is above the 20-day moving average (MA) of 205.69, above the 50-day MA of 194.53, and above the 200-day MA of 225.87, indicating a bearish trend. The MACD of -2.42 indicates Positive momentum. The RSI at 33.80 is Neutral, neither overbought nor oversold. The STOCH value of 11.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POOL.
Pool Risk Analysis
Pool disclosed 24 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.83B | 32.34 | 21.64% | 0.70% | 7.54% | 6.04% | |
70 Outperform | $14.78B | 30.02 | 17.84% | 3.38% | -4.53% | -7.76% | |
69 Neutral | $16.19B | 23.35 | 13.70% | 0.72% | 11.16% | 6.33% | |
65 Neutral | $6.70B | 16.88 | 32.50% | 2.15% | 2.23% | 0.42% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $8.44B | 18.33 | 22.73% | ― | 0.46% | 8.94% | |
55 Neutral | $4.43B | 29.46 | 9.22% | ― | 2.85% | 33.21% |
* Industrials Sector Average
POOL
Pool
183.77
-134.03
-42.17%
AIT
Applied Industrial Technologies
347.06
76.82
28.43%
WSO
Watsco
362.01
-112.14
-23.65%
WCC
Wesco International
332.48
119.57
56.16%
SITE
SiteOne Landscape Supply
99.87
-32.89
-24.77%
CNM
Core & Main
43.62
-22.15
-33.68%
Pool Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Pool Corp Reports Solid Q2 2026 Earnings Performance
Positive
Jul 23, 2026
On July 23, 2026, Pool Corp reported that second-quarter 2026 net sales rose 2% to $1.8 billion, driven by resilient maintenance demand and improving building materials sales despite muted discretionary spending. Gross profit increased 1% while gr...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Pool Corp appoints new CEO amid leadership transition
Neutral
May 4, 2026
On May 4, 2026, Pool Corporation announced a leadership shake-up, with President and CEO Peter D. Arvan stepping down from his executive roles and resigning from the board, a move the company said did not stem from any disagreement over its operat...
Stock BuybackDividendsShareholder Meetings
Pool Expands Buyback Program and Increases Quarterly Dividend
Positive
Apr 29, 2026
On April 29, 2026, Pool Corporation’s board expanded its share repurchase authorization to $600 million, adding $329 million to the $271 million remaining under the prior program, and raised the quarterly dividend by 4% to $1.30 per share, p...
Business Operations and StrategyStock BuybackFinancial Disclosures
Pool Corporation Reports Solid First-Quarter 2026 Results
Positive
Apr 23, 2026
On April 23, 2026, Pool Corporation reported first-quarter 2026 net sales of $1.14 billion, up 6% year-on-year, driven by resilient maintenance demand, strong equipment sales and a gradual recovery in discretionary categories such as building mate...
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.