Pool (POOL) AI Stock Analysis

• Market Cap: $11.36B
• Dividend Yield: 1.58%
• Average Volume (3M): 519.74K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.84
• Revenue Growth: -3.56%
• EPS Growth: -16.75%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Distribution
• EPS (TTM): 1.32
• Shares Outstanding: 37,595,215
• 10 Day Avg. Volume: 572,202
• 30 Day Avg. Volume: 519,741
• PEG Ratio: -4.84
• Price to Book (P/B): 8.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $320.60
• Price Target Upside: 6.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 68 Neutral
• Price Target: $329.00 ▲( 8.84% Upside)

Pool Corporation's stock score reflects a challenging financial environment with declining revenue and margins, offset by stable cash flow management and positive corporate actions like share repurchases and dividend increases. Technical indicators suggest limited momentum, and the valuation appears high, impacting the score.

Positive Factors

Cost Management

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

Operational Initiatives

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

Supply Chain and Pricing

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

Negative Factors

Competition and Pricing

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 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
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
	EBIT
586.02M	617.20M	747.12M	1.03B	832.78M	464.03M
	EBITDA
632.74M	662.68M	786.71M	1.06B	862.81M	493.43M
	Net Income Common Stockholders
408.99M	434.32M	523.23M	748.46M	650.62M	366.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
66.54M	77.86M	66.54M	45.59M	24.32M	34.13M
	Total Assets
3.43B	3.37B	3.43B	3.57B	3.23B	1.74B
	Total Debt
1.36B	1.27B	1.36B	1.66B	1.43B	623.84M
	Net Debt
1.30B	1.19B	1.30B	1.62B	1.40B	589.71M
	Total Liabilities
2.12B	2.09B	2.12B	2.33B	2.16B	1.10B
	Stockholders Equity
1.31B	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: Negative
• Last Price: 302.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 302.29 is below the 20-day moving average (MA) of 304.40, below the 50-day MA of 308.88, and below the 200-day MA of 341.06, indicating a bearish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 19.36 is Positive, 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	$10.47B	24.94	26.10%	―	11.03%	-0.85%
AIT	72 Outperform	$8.49B	22.35	22.23%	0.70%	0.50%	4.48%
WSO	70 Outperform	$18.51B	35.02	18.91%	2.43%	3.92%	1.09%
POOL	68 Neutral	$11.36B	28.35	31.49%	1.58%	-3.56%	-16.75%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
SITE	64 Neutral	$5.19B	45.90	7.64%	―	4.73%	-27.46%
FERG		£26.53B	20.72	29.63%	1.89%	―	―

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.

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.