Pool (POOL) AI Stock Analysis

• Market Cap: $11.74B
• Dividend Yield: 1.65%
• Average Volume (3M): 470.04K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.86
• Revenue Growth: -3.56%
• EPS Growth: -16.69%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 75
• Industry: Industrial - Distribution
• EPS (TTM): 0.97
• Shares Outstanding: 37,718,200
• 10 Day Avg. Volume: 597,401
• 30 Day Avg. Volume: 470,043
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.27
• Price to Cash Flow (P/CF): 17.70
• P/FCF Ratio: 19.20
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.97
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $318.44
• Price Target Upside: 8.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Pool's overall stock score reflects moderate performance with challenges in revenue growth and profitability, as well as bearish technical indicators. Valuation metrics suggest the stock may be overvalued, but the company shows strengths in maintenance product sales and strategic initiatives. Optimism for recovery in the latter part of the year provides some positive outlook amidst current market challenges.

Positive Factors

Cost Management

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

Operational Initiatives

Gross margin in the quarter was helped by initiatives such as supply chain and pricing.

Strategic Investments

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

Negative Factors

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.

Revenue Decline

The company's revenues declined due to lower sales in building materials, equipment, and specific regional segments.

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 faces challenges in maintaining revenue growth and profitability, as evidenced by declining margins and net income. The balance sheet remains stable with moderate leverage, and cash flow management shows efficiency despite a reduction in free cash flow growth. The company needs to address revenue and profit pressures to improve its financial outlook.

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
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: Negative
• Last Price: 293.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 293.9 is below the 20-day moving average (MA) of 305.05, below the 50-day MA of 323.51, and below the 200-day MA of 345.76, indicating a bearish trend. The MACD of -8.29 indicates Positive momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 23.21 is Neutral, 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
CNM	78 Outperform	$9.76B	23.26	26.10%	―	11.03%	-0.85%
AIT	76 Outperform	$9.15B	24.13	22.70%	0.66%	0.37%	3.52%
FERG	75 Outperform	£33.89B	20.99	29.63%	2.01%	1.84%	-5.54%
WSO	70 Outperform	$20.81B	38.71	18.91%	2.37%	3.92%	―
POOL	66 Neutral	$11.74B	27.54	31.51%	1.65%	-3.56%	-16.69%
SITE	64 Neutral	$5.17B	42.58	8.08%	―	5.57%	-28.96%
Sector *	63 Neutral	$4.29B	11.36	5.34%	214.53%	4.14%	-9.10%

Pool Corporate Events

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.

Spark’s Take on POOL Stock

According to Spark, TipRanks’ AI Analyst, POOL is a Neutral.

Pool Corporation demonstrates strong profitability and cash flow management, supported by a stable balance sheet with reduced leverage. However, the decline in revenue growth and challenges in certain market segments temper the overall outlook. Technical indicators suggest caution, while valuation remains moderate with a reasonable dividend yield. The earnings call reflects resilience but notes market pressures. Overall, Pool Corporation holds a stable position, but growth challenges warrant a cautious approach.

To see Spark’s full report on POOL stock, click here.

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.