Pool (POOL)
NASDAQ:POOL
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Pool
(NASDAQ:POOL)
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Rating:60Neutral
Price Target:
$220.00
▼(-3.35% Downside)
Action:ReiteratedDate:04/30/26
The score reflects solid cash generation and resilient profitability, supported by reiterated 2026 guidance and a constructive Q1. These positives are tempered by increased leverage and a premium P/E, while weak technical positioning (below longer-term moving averages with subdued RSI/stochastic) weighs on near-term outlook.
Positive Factors
Strong cash generation
Pool has demonstrated durable cash-generation capacity: TTM operating cash flow (~$704M) and robust free cash flow (~$605M) consistently convert earnings into liquidity. This supports reinvestment, dividends, buybacks and capital for greenfield expansion without relying on volatile external financing over the medium term.
Negative Factors
Rising leverage on a TTM basis
Recent leverage step-up (TTM debt/equity ~1.30 and ~$1.2B total debt) reduces financial flexibility and increases interest exposure if demand softens. Higher leverage paired with share repurchases and greenfield spend tightens the margin for error on cashflow variability, elevating medium-term refinancing and payout risks.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Pool has demonstrated durable cash-generation capacity: TTM operating cash flow (~$704M) and robust free cash flow (~$605M) consistently convert earnings into liquidity. This supports reinvestment, dividends, buybacks and capital for greenfield expansion without relying on volatile external financing over the medium term.
Read all positive factors
Pool (POOL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.64B
Dividend Yield2.15%
Average Volume (3M)675.96K
Price to Earnings (P/E)34.6
Beta (1Y)0.64
Revenue Growth1.79%
EPS Growth1.72%
CountryUS
Employees6,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)1.43
Shares Outstanding36,700,584
10 Day Avg. Volume609,572
30 Day Avg. Volume675,959
Financial Highlights & Ratios
PEG Ratio-4.95
Price to Book (P/B)7.17
Price to Sales (P/S)1.61
P/FCF Ratio27.46
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue1.70
Enterprise Value/Gross Profit5.74
Enterprise Value/Ebitda14.35
Forecast
1Y Price Target
$258.86Price Target Upside13.72% Upside
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 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 replace...
How the Company Makes Money
POOL primarily makes money by selling products it sources from manufacturers and distributes through its branch network to trade customers, earning gross profit on the spread between its purchase costs and selling prices. Its key revenue streams a...
Pool Key Performance Indicators (KPIs)
Pool Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented a constructive start to the 2026 season with solid top-line growth (6%), operating income expansion (7%), EPS growth and confirmation of full-year guidance. Key strategic initiatives—private label, POOL360, selective sales center expansion and share repurchases—are delivering and management emphasized disciplined capital allocation. Headwinds include a modest gross margin compression (~20 bps) driven by mix and early-buy activity, a sizable seasonal inventory build (+14%), and measured consumer discretionary demand with isolated regional softness (Horizon -2%, Florida -1%). On balance, the operational and strategic positives (broad-based product growth, digital penetration, geographic strength, EPS up excl. ASU) outweigh the manageable near-term financial and working capital pressures.Positive Updates
Top-Line and Operating Performance
Net sales increased 6% year-over-year in Q1; operating income grew 7% and operating margin expanded by 10 basis points, demonstrating profitable revenue growth early in the season.
Negative Updates
Gross Margin Pressure
Reported gross margin was 29%, down approximately 20 basis points year-over-year. Primary drivers included product mix (equipment outgrowth, which carries lower relative margins), inbound freight and increased customer early-buy activity which carries modest discounts.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line and Operating Performance
Net sales increased 6% year-over-year in Q1; operating income grew 7% and operating margin expanded by 10 basis points, demonstrating profitable revenue growth early in the season.
Read all positive updates
Company Guidance
Guidance for 2026 was reiterated unchanged: full‑year diluted EPS of $10.87 to $11.17 (which includes the $0.02 ASU benefit recognized in Q1; no further ASU benefit assumed), with the midpoint implying roughly 2%–3% EPS growth versus prior year and same‑selling‑day top‑line expected to be low single‑digit growth; management expects a 1%–2% full‑year pricing benefit (Q1 pricing contributed ~3% to sales), gross margin to be roughly consistent with 2025, and expense growth to moderate through the year as greenfield absorption improves. Q1 metrics included net sales +6%, gross margin 29% (down ~20 bps), operating income $83M (+7%) with a 10‑bp operating margin expansion, operating expenses $247M (+5%), diluted EPS $1.45 (+$0.03; +$0.11 excl. ASU), POOL360 at 13% of sales, inventory $1.7B (+14% YoY, ~$200M above year‑end), total debt ~$1.2B (leverage 1.7x), net cash from ops $25.7M, share repurchases ~$64M in Q1 with $271M remaining, projected interest expense $49M–$51M (Q2 highest), and an estimated full‑year tax rate ~25% (Q2 ~25.5%); the company still expects to open 5 net new sales centers in 2026 (455 total) and continue disciplined capital allocation.Pool Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
54
Neutral
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.36B | 5.29B | 5.31B | 5.54B | 6.18B | 5.30B |
| Gross Profit | 1.59B | 1.57B | 1.58B | 1.66B | 1.93B | 1.62B |
| EBITDA | 636.22M | 631.81M | 662.68M | 786.71M | 1.06B | 862.81M |
| Net Income | 406.09M | 406.40M | 434.32M | 523.23M | 748.46M | 650.62M |
Balance Sheet | ||||||
| Total Assets | 3.63B | 3.63B | 3.37B | 3.43B | 3.57B | 3.23B |
| Cash, Cash Equivalents and Short-Term Investments | 104.96M | 104.96M | 77.86M | 66.54M | 45.59M | 24.32M |
| Total Debt | 1.54B | 348.61M | 1.27B | 1.36B | 1.66B | 1.43B |
| Total Liabilities | 2.44B | 2.44B | 2.09B | 2.12B | 2.33B | 2.16B |
| Stockholders Equity | 1.13B | 1.19B | 1.27B | 1.31B | 1.24B | 1.07B |
Cash Flow | ||||||
| Free Cash Flow | 605.10M | 309.52M | 599.71M | 828.13M | 441.24M | 275.83M |
| Operating Cash Flow | 704.48M | 365.85M | 659.19M | 888.23M | 484.85M | 313.49M |
| Investing Cash Flow | -122.02M | -67.79M | -66.17M | -71.60M | -50.87M | -849.61M |
| Financing Cash Flow | -526.15M | -273.38M | -576.55M | -798.13M | -411.66M | 526.13M |
Pool Technical Analysis
Neutral
227.62
Price Trends
220.49
Positive
232.46
Negative
264.43
Negative
Market Momentum
2.26
Negative
66.23
Neutral
86.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POOL, the sentiment is Neutral. The current price of 227.62 is above the 20-day moving average (MA) of 208.79, above the 50-day MA of 220.49, and below the 200-day MA of 264.43, indicating a neutral trend. The MACD of 2.26 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 86.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $10.96B | 24.95 | 18.80% | 0.70% | 7.54% | 6.04% | |
77 Outperform | $17.45B | 43.67 | 17.15% | 3.38% | -4.53% | ― | |
66 Neutral | $14.88B | 18.89 | 13.02% | 0.72% | 7.76% | -0.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $7.64B | 34.55 | 32.17% | 2.15% | 1.79% | 1.72% | |
60 Neutral | $9.43B | 23.55 | 23.20% | ― | 2.77% | 8.42% | |
57 Neutral | $5.36B | 37.54 | 9.28% | ― | 3.62% | 24.15% |
* Industrials Sector Average
POOL
Pool
209.61
-78.09
-27.14%
AIT
Applied Industrial Technologies
296.57
55.07
22.81%
WSO
Watsco
428.51
-17.46
-3.91%
WCC
Wesco International
305.27
143.64
88.87%
SITE
SiteOne Landscape Supply
120.97
6.16
5.37%
CNM
Core & Main
48.44
-4.24
-8.05%
Pool Corporate Events
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...
Business Operations and StrategyDividends
Pool Corporation Declares Quarterly Cash Dividend, Signals Confidence
Positive
Feb 25, 2026
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, 20...
Business Operations and StrategyStock BuybackFinancial Disclosures
Pool Corp Issues 2025 Results and 2026 EPS Outlook
Negative
Feb 19, 2026
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 e...
Executive/Board Changes
Pool Corporation Announces Director Carlos Sabater’s Planned Exit
Neutral
Feb 13, 2026
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 s...
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.