Pool (POOL) AI Stock Analysis

• Market Cap: $8.69B
• Dividend Yield: 2.06%
• Average Volume (3M): 886.07K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.69
• Revenue Growth: -0.60%
• EPS Growth: -5.99%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 3.39
• Shares Outstanding: 37,249,485
• 10 Day Avg. Volume: 518,419
• 30 Day Avg. Volume: 886,070
• PEG Ratio: -1.93
• Price to Book (P/B): 10.18
• Price to Sales (P/S): 2.44
• P/FCF Ratio: 21.61
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 8.17
• Enterprise Value/Ebitda: 20.08
• 1Y Price Target: $326.00
• Price Target Upside: 35.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 10.88
• Revenue Forecast (FY): $5.31B

• Rating: 65 Neutral
• Price Target: $255.00 ▲(6.12% Upside)

Pool Corporation's overall score reflects strong revenue growth and improved leverage, but challenges in profitability and cash flow generation weigh on the outlook. The stock's technical indicators suggest a bearish trend, while valuation metrics indicate moderate attractiveness. The earnings call provided a balanced view, with technological advancements offset by market challenges.

Positive Factors

Revenue Growth

Consistent revenue growth and margin expansion indicate strong market presence and operational efficiency, supporting long-term stability.

Technological Advancements

Increased adoption of POOL360 enhances customer experience and operational efficiency, strengthening competitive advantage.

Strategic Expansion

Strategic acquisitions and expansion efforts bolster market reach and growth potential, positioning the company for future success.

Negative Factors

Profit Margin Pressure

Declining profit margins suggest operational challenges that could impact long-term profitability if not addressed.

Cash Flow Generation

Negative free cash flow growth indicates potential cash generation issues, which could limit financial flexibility and investment capacity.

Market Challenges

Sales declines in key markets like California and Arizona highlight regional challenges that may affect overall growth prospects.

Pool Business Overview & Revenue Model

Company Description

Pool (POOL) is a leading provider of specialty distribution services in the swimming pool and outdoor living sectors. The company offers a wide range of products, including pool chemicals, equipment, and supplies, catering to both residential and commercial customers. Pool operates through a network of distribution centers and retail locations, ensuring efficient delivery and availability of its products across various regions.

How the Company Makes Money

Pool generates revenue primarily through the sale of pool and outdoor living products, including chemicals, equipment, and accessories. The company operates on a wholesale distribution model, supplying products to retailers and service companies, which constitutes a significant portion of its revenue. Additionally, Pool benefits from direct sales to consumers through its retail locations and e-commerce platform. Key revenue streams include seasonal sales of pool chemicals and equipment, maintenance and repair services, and exclusive partnerships with leading manufacturers in the pool industry, which may provide favorable pricing and product availability, enhancing its competitive advantage.

Pool Financial Statement Overview

Summary

Pool demonstrates strong revenue growth and improved leverage, but faces challenges in profitability and cash flow generation. The company has made strides in reducing debt, enhancing its financial stability. However, declining profit margins and cash flow growth could pose risks if not addressed.

Income Statement

Pool's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 34.6%, indicating strong top-line growth. However, the net profit margin has decreased from 12.1% in 2022 to 7.8% in the TTM, suggesting pressure on profitability. The gross profit margin remains stable around 29.6%, but EBIT and EBITDA margins have declined, reflecting potential operational challenges.

Balance Sheet

The balance sheet reflects a significant improvement in leverage, with the debt-to-equity ratio decreasing from 1.34 in 2022 to 0.25 in the TTM. This indicates a stronger equity position. However, the return on equity has decreased from 60.6% in 2022 to 31.8% in the TTM, which may point to less efficient use of equity. The equity ratio has improved, suggesting a more stable financial structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which is negative in the TTM, indicating potential cash generation issues. The operating cash flow to net income ratio is 0.63, showing moderate cash conversion efficiency. The free cash flow to net income ratio remains strong at 0.86, suggesting that the company still generates healthy cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.29B	5.31B	5.54B	6.18B	5.30B	3.94B
Gross Profit	1.57B	1.58B	1.66B	1.93B	1.62B	1.13B
EBITDA	637.53M	662.68M	786.71M	1.06B	862.81M	493.43M
Net Income	412.12M	434.32M	523.23M	748.46M	650.62M	366.74M
Balance Sheet
Total Assets	3.50B	3.37B	3.43B	3.57B	3.23B	1.74B
Cash, Cash Equivalents and Short-Term Investments	128.48M	77.86M	66.54M	45.59M	24.32M	34.13M
Total Debt	1.39B	1.27B	1.36B	1.66B	1.43B	623.84M
Total Liabilities	2.12B	2.09B	2.12B	2.33B	2.16B	1.10B
Stockholders Equity	1.38B	1.27B	1.31B	1.24B	1.07B	639.47M
Cash Flow
Free Cash Flow	394.66M	599.71M	828.13M	441.24M	275.83M	375.88M
Operating Cash Flow	456.31M	659.19M	888.23M	484.85M	313.49M	397.58M
Investing Cash Flow	-72.47M	-66.17M	-71.60M	-50.87M	-849.61M	-146.29M
Financing Cash Flow	-347.14M	-576.55M	-798.13M	-411.66M	526.13M	-244.37M

Pool Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 240.29
• 50DMA: Negative
• 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 Neutral. The current price of 240.29 is above the 20-day moving average (MA) of 240.27, below the 50-day MA of 265.24, and below the 200-day MA of 298.08, indicating a neutral trend. The MACD of -6.83 indicates Negative momentum. The RSI at 41.29 is Neutral, neither overbought nor oversold. The STOCH value of 27.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for POOL.

Pool Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCC	75 Outperform	$13.47B	21.73	13.06%	0.66%	5.28%	1.97%
AIT	74 Outperform	$9.97B	25.42	22.10%	0.70%	4.03%	5.93%
SITE	71 Outperform	$5.78B	42.49	8.37%	―	4.00%	-0.75%
WSO	71 Outperform	$13.82B	26.45	17.61%	3.26%	-0.71%	-0.17%
CNM	71 Outperform	$10.14B	24.57	23.85%	―	8.09%	6.33%
POOL	65 Neutral	$8.69B	21.29	29.16%	2.06%	-0.60%	-5.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Pool Corporate Events

Pool Corporation Declares Quarterly Cash Dividend

On October 29, 2025, Pool Corporation announced that its Board of Directors declared a quarterly cash dividend of $1.25 per share, payable on November 26, 2025, to shareholders recorded by November 12, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact its market positioning and investor relations.

Pool Corporation Reports Q3 2025 Financial Results

Pool Corporation reported a 1% increase in net sales to $1.5 billion for the third quarter of 2025, compared to the same period in 2024, with a gross margin expansion of 50 basis points to 29.6%. Despite a 5% rise in operating expenses due to network expansion and inflation, the company maintained an operating margin of 12.3% and saw a 4% increase in diluted EPS to $3.40. The company confirmed its annual earnings guidance and highlighted its strategic growth through new locations and enhanced customer offerings, marking its 30th anniversary as a public company.