Pool (POOL) AI Stock Analysis

• Market Cap: $11.38B
• Dividend Yield: 1.65%
• Average Volume (3M): 663.82K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.78
• Revenue Growth: -3.56%
• EPS Growth: -16.75%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Distribution
• EPS (TTM): 1.32
• Shares Outstanding: 37,595,215
• 10 Day Avg. Volume: 854,298
• 30 Day Avg. Volume: 663,815
• PEG Ratio: 0.96
• Price to Book (P/B): 9.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.00
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 8.73
• Enterprise Value/Ebitda: 5.06
• 1Y Price Target: $316.50
• Price Target Upside: 4.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $330.00 ▲(9.03%Upside)

Pool's overall stock score reflects its financial challenges with declining profitability and revenue growth, against a backdrop of strategic initiatives like share repurchase and dividend increases. While technical indicators suggest cautious trading, the company's efforts to enhance shareholder value and adapt to market dynamics provide a balanced outlook.

Positive Factors

Market Expansion

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

Market Strategy

The market continues to present several challenges, but it is believed that POOL is executing well on what it can control.

Operational Efficiency

POOL did a good job keeping costs tight, with SG&A growing modestly.

Negative Factors

Competitive Pressure

Gross margin guidance was cut due to lower discretionary sales and increased pricing competition.

Earnings Performance

The company reported lower than expected earnings per share driven by weaker revenue.

Growth Outlook

There is a weaker growth outlook due to elevated competition, leading to a lowered price objective.

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 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 Financial Statement Overview

Summary

Pool Corporation faces challenges in maintaining revenue growth and profitability, with declining margins and net income. However, the balance sheet remains stable with moderate leverage, and cash flow management shows efficiency despite a reduction in free cash flow growth.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.26B	5.31B	5.54B	6.18B	5.30B	3.94B
Gross Profit	1.55B	1.58B	1.66B	1.93B	1.62B	1.13B
EBITDA	632.74M	662.68M	786.71M	1.06B	862.81M	493.43M
Net Income	408.99M	434.32M	523.23M	748.46M	650.62M	366.74M
Balance Sheet
Total Assets	3.71B	3.37B	3.43B	3.57B	3.23B	1.74B
Cash, Cash Equivalents and Short-Term Investments	71.64M	77.86M	66.54M	45.59M	24.32M	34.13M
Total Debt	1.35B	1.27B	1.36B	1.66B	1.43B	623.84M
Total Liabilities	2.47B	2.09B	2.12B	2.33B	2.16B	1.10B
Stockholders Equity	1.24B	1.27B	1.31B	1.24B	1.07B	639.47M
Cash Flow
Free Cash Flow	485.24M	599.71M	828.13M	441.24M	275.83M	375.88M
Operating Cash Flow	540.97M	659.19M	888.23M	484.85M	313.49M	397.58M
Investing Cash Flow	-60.78M	-66.17M	-71.60M	-50.87M	-849.61M	-146.29M
Financing Cash Flow	-473.00M	-576.55M	-798.13M	-411.66M	526.13M	-244.37M

Pool Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 302.67
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 302.67 is above the 20-day moving average (MA) of 296.60, above the 50-day MA of 300.37, and below the 200-day MA of 335.08, indicating a neutral trend. The MACD of -1.21 indicates Negative momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 60.28 is Neutral, 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
AIT	75 Outperform	$9.34B	24.59	22.23%	0.75%	0.50%	4.48%
CNM	75 Outperform	$12.19B	28.67	25.11%	―	10.80%	0.98%
Sector *	71 Outperform	¥254.81B	12.92	8.49%	3.09%	6.34%	12.88%
WSO	70 Outperform	$18.52B	34.98	18.91%	2.63%	3.92%	1.09%
SITE	67 Neutral	$5.78B	51.14	7.64%	―	4.73%	-27.46%
POOL	67 Neutral	$11.38B	28.38	31.49%	1.65%	-3.56%	-16.75%
FERG		£31.99B	25.91	29.28%	1.14%	―	―

Pool Corporate Events

Pool Corporation Increases Share Repurchase and Dividend

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.

Pool Corporation Reports Q1 2025 Financial Results

On April 24, 2025, Pool Corporation reported its first-quarter results, showing net sales of $1.1 billion, a 4% decrease from the previous year. Despite challenges such as weather impacts and inflationary pressures, the company confirmed its annual earnings guidance range, highlighting strategic initiatives like expanding its sales center network and enhancing its digital platform. These efforts aim to strengthen its market position and customer experience, although net income and earnings per share saw a decline compared to the previous year.