Pool (POOL)
NASDAQ:POOL
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Pool
(NASDAQ:POOL)
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Rating:59Neutral
Price Target:
$208.00
▲(2.50% Upside)
Action:ReiteratedDate:02/26/26
The score is held back primarily by weakening recent financial trends (revenue declines, margin compression, and lower 2025 free cash flow) and clearly bearish technicals (below major moving averages with negative momentum). These are partially offset by improved leverage, a reasonable P/E with a supportive dividend yield, and 2026 guidance calling for modest growth with stable gross margin.
Positive Factors
Market position & scale
A broad branch network and large wholesale customer base create durable distribution advantages: deep supplier relationships, repeat trade volumes, geographic diversification and high switching costs for customers. Scale supports buy-and-ship efficiencies and long-term margin resilience.
Negative Factors
Multi-year revenue declines
Sustained revenue declines over multiple years reflect weakening end-market demand and limit operating leverage. Persistent top-line contraction pressures fixed-cost absorption, constrains reinvestment capacity and raises the bar for margin recovery even if unit economics remain solid.
Read all positive and negative factors
Positive Factors
Negative Factors
Market position & scale
A broad branch network and large wholesale customer base create durable distribution advantages: deep supplier relationships, repeat trade volumes, geographic diversification and high switching costs for customers. Scale supports buy-and-ship efficiencies and long-term margin resilience.
Read all positive factors
Pool (POOL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.47B
Dividend Yield2.15%
Average Volume (3M)802.40K
Price to Earnings (P/E)20.9
Beta (1Y)0.61
Revenue Growth-0.60%
EPS Growth-5.99%
CountryUS
Employees6,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.84
Shares Outstanding36,787,820
10 Day Avg. Volume790,350
30 Day Avg. Volume802,400
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 Cap1.03
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit4.90
Enterprise Value/Ebitda12.20
Forecast
1Y Price Target
$266.33Price Target Upside31.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)11.02
Revenue Forecast (FY)$5.40B
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 Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call communicated a cautiously optimistic but pragmatic view: the company delivered resilient top-line stability ($5.3B), improved gross margins and strong shareholder returns while continuing to expand digital capabilities and its physical footprint. At the same time, earnings and operating income were pressured by softer discretionary demand, regional and product-category headwinds, higher operating expenses (tech and new locations) and a working-capital driven inventory build funded partly by higher debt. Management stressed disciplined capital allocation, confidence in operational initiatives (POOL360, supply chain, private label) to drive margins and low single-digit sales growth guidance for 2026, but emphasized uncertainty around the timing of a discretionary recovery. Overall, positives around margin expansion, digital penetration, shareholder returns and a solid balance sheet offset the declines in EPS and softness in specific regions and categories.Positive Updates
Stable Annual Revenue
Full-year 2025 revenue of $5.3 billion, essentially flat year-over-year despite one fewer selling day; fourth quarter sales of $982 million, down only 1% vs. a tough hurricane-related comp in the prior year.
Negative Updates
New Pool Construction Decline
Estimated U.S. new pool builds of just under 60,000 in 2025, a mid-single-digit decline versus prior year and ~40% below 2022 levels, pressuring new-construction–dependent sales and discretionary categories.
Read all updates
Q4-2025 Updates
Positive
Negative
Stable Annual Revenue
Full-year 2025 revenue of $5.3 billion, essentially flat year-over-year despite one fewer selling day; fourth quarter sales of $982 million, down only 1% vs. a tough hurricane-related comp in the prior year.
Read all positive updates
Company Guidance
Management guided 2026 net sales to grow in the low single-digit range (with new U.S. pools assumed near 60,000), and expects gross margin to be consistent with 2025 (FY 29.7%, Q4 30.1%). Diluted EPS guidance is $10.85–$11.15 (no ASU tax benefit), implying roughly a 2–3% improvement at the midpoint; the annual tax rate is estimated at ~25% (ex-ASU), interest expense ≈ $50M, depreciation & amortization $55–57M, and weighted average shares ~36.8M in Q1 and ~36.9M for the remainder of the year. Management expects a 1–2% net pricing benefit, plans to open 5–8 new sales centers (≈ $5M incremental costs), anticipates incentive comp rising $10–15M if low-single-digit revenue is achieved, will reinvest ~1–1.5% of sales, allocate $25–50M for acquisitions, pay ~ $200M in dividends, repurchase shares opportunistically, target cash flow ≈100% of net income, and maintain leverage near its 1.5–2.0x target (1.67x at year-end).Pool Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.29B | 5.31B | 5.54B | 6.18B | 5.30B |
| Gross Profit | 1.57B | 1.58B | 1.66B | 1.93B | 1.62B |
| EBITDA | 631.81M | 662.68M | 786.71M | 1.06B | 862.81M |
| Net Income | 406.40M | 434.32M | 523.23M | 748.46M | 650.62M |
Balance Sheet | |||||
| Total Assets | 3.63B | 3.37B | 3.43B | 3.57B | 3.23B |
| Cash, Cash Equivalents and Short-Term Investments | 104.96M | 77.86M | 66.54M | 45.59M | 24.32M |
| Total Debt | 348.61M | 1.27B | 1.36B | 1.66B | 1.43B |
| Total Liabilities | 2.44B | 2.09B | 2.12B | 2.33B | 2.16B |
| Stockholders Equity | 1.19B | 1.27B | 1.31B | 1.24B | 1.07B |
Cash Flow | |||||
| Free Cash Flow | 309.52M | 599.71M | 828.13M | 441.24M | 275.83M |
| Operating Cash Flow | 365.85M | 659.19M | 888.23M | 484.85M | 313.49M |
| Investing Cash Flow | -67.79M | -66.17M | -71.60M | -50.87M | -849.61M |
| Financing Cash Flow | -273.38M | -576.55M | -798.13M | -411.66M | 526.13M |
Pool Technical Analysis
Negative
202.93
Price Trends
228.94
Negative
235.05
Negative
268.09
Negative
Market Momentum
-7.14
Negative
39.71
Neutral
46.65
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 202.93 is below the 20-day moving average (MA) of 205.00, below the 50-day MA of 228.94, and below the 200-day MA of 268.09, indicating a bearish trend. The MACD of -7.14 indicates Negative momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 46.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $15.07B | 25.70 | 18.04% | 3.38% | -0.71% | -0.17% | |
72 Outperform | $9.96B | 25.36 | 21.74% | 0.70% | 4.03% | 5.93% | |
66 Neutral | $13.50B | 18.89 | 13.02% | 0.72% | 5.28% | 1.97% | |
65 Neutral | $5.63B | 37.54 | 8.37% | ― | 4.00% | -0.75% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $9.92B | 23.55 | 23.20% | ― | 8.09% | 6.33% | |
59 Neutral | $7.47B | 20.91 | 31.86% | 2.15% | -0.60% | -5.99% |
* Industrials Sector Average
POOL
Pool
202.93
-94.53
-31.78%
AIT
Applied Industrial Technologies
267.12
60.38
29.20%
WSO
Watsco
370.31
-89.10
-19.40%
WCC
Wesco International
277.45
141.50
104.08%
SITE
SiteOne Landscape Supply
126.74
17.18
15.68%
CNM
Core & Main
50.95
5.55
12.22%
Pool Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Pool Corporation Announces Leadership Transition and New EVP
Positive
Jan 12, 2026
On January 12, 2026, Pool Corporation announced that long-time Senior Vice President Kenneth “Kenny” G. St. Romain will retire from his position later in 2026 after more than 40 years with the company, remaining in his role in the inte...
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.