Pool (POOL) AI Stock Analysis

• Market Cap: $11.60B
• Dividend Yield: 1.61%
• Average Volume (3M): 544.79K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.76
• Revenue Growth: -1.71%
• EPS Growth: -8.90%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 5.17
• Shares Outstanding: 37,318,010
• 10 Day Avg. Volume: 594,580
• 30 Day Avg. Volume: 544,790
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 7.96
• Enterprise Value/Ebitda: 19.49
• 1Y Price Target: $326.20
• Price Target Upside: 6.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: $344.00 ▲(12.47% Upside)

Pool Corporation's overall stock score reflects solid financial performance and stable earnings, but is tempered by valuation concerns and mixed technical indicators. The earnings call provided a balanced outlook, with regional strengths offset by challenges in construction and pricing pressures. Continued focus on revenue growth and managing economic uncertainties will be key to improving the stock's outlook.

Positive Factors

Cash Flow Generation

Strong free cash flow generation indicates robust operational efficiency and the ability to reinvest in growth opportunities, supporting long-term business sustainability.

Digital Platform Expansion

The expansion of the POOL360 platform reflects strong digital adoption, enhancing customer engagement and potentially increasing sales efficiency over time.

European Market Growth

Growth in the European market demonstrates successful international expansion, diversifying revenue streams and reducing reliance on domestic markets.

Negative Factors

Revenue Decline

Declining revenue growth may indicate market challenges or increased competition, potentially impacting long-term profitability and market position.

New Pool Construction Challenges

Challenges in new pool construction due to macroeconomic factors and interest rates could limit growth in a key revenue segment, affecting future earnings.

Chemical Pricing Pressure

Pricing pressures in chemical sales may compress margins, impacting profitability in a significant product category over the medium term.

Pool Business Overview & Revenue Model

Company Description

Pool (POOL) is a leading provider of swimming pool and related products, operating primarily in the construction and maintenance sectors of the pool industry. The company specializes in a variety of products and services including pool construction, renovation, maintenance, and retail sales of pool supplies and equipment. With a strong focus on customer satisfaction and innovation, Pool caters to both residential and commercial customers, offering tailored solutions to meet diverse pool-related needs.

How the Company Makes Money

Pool generates revenue through several key streams, primarily through the sale of pool construction and renovation services, which account for a significant portion of its earnings. The company also profits from ongoing maintenance contracts and the retail sale of pool supplies such as chemicals, cleaning equipment, and accessories. Additionally, Pool has established strategic partnerships with manufacturers and suppliers, enabling it to offer a wide range of products at competitive prices. These partnerships often lead to favorable terms and increased sales volume. The company may also benefit from seasonal demand fluctuations, particularly during peak swimming months, contributing to its overall revenue growth.

Pool Financial Statement Overview

Summary

The company's financial performance is strong, with stable profitability and efficient cash flow generation. However, recent declines in revenue growth and leverage levels present some concerns. The income statement shows solid net profit margins, and the balance sheet reflects a moderate debt-to-equity ratio. Despite challenges, the overall financial health remains sound.

Income Statement

The company's income statement shows stable gross profit margins and solid net profit margins, although there has been a recent decline in revenue growth. The TTM gross profit margin stands at 29.45%, and the net profit margin at 7.78%. Revenue growth has been negative recently, with a decline from 2024 to the TTM period. This may indicate market challenges or increased competition, but the overall profitability remains sound.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 1.20, indicating a balanced use of leverage. The equity ratio is at 35.38%, suggesting a healthy proportion of equity financing. Return on equity is reasonably strong at 31.63%, illustrating efficient use of shareholder funds. Overall, the balance sheet is stable but indicates potential risks if leverage increases further.

Cash Flow

The cash flow statement reveals strong free cash flow generation, although there is a decline in free cash flow growth recently. The operating cash flow to net income ratio is 1.18, indicating efficient cash generation from operations. Free cash flow to net income ratio is 1.06, demonstrating healthy cash flow relative to earnings. Despite recent declines, cash flow generation remains robust.

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
EBITDA	662.68M	786.71M	1.06B	862.81M	493.43M
Net Income	434.32M	523.23M	748.46M	650.62M	366.74M
Balance Sheet
Total Assets	3.37B	3.43B	3.57B	3.23B	1.74B
Cash, Cash Equivalents and Short-Term Investments	77.86M	66.54M	45.59M	24.32M	34.13M
Total Debt	1.27B	1.36B	1.66B	1.43B	623.84M
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: 305.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 305.86 is below the 20-day moving average (MA) of 318.32, below the 50-day MA of 315.92, and below the 200-day MA of 319.06, indicating a bearish trend. The MACD of -1.69 indicates Positive momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 6.32 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
WCC	78 Outperform	10.40B	16.33	13.91%	0.83%	1.30%	-1.09%
AIT	73 Outperform	9.87B	25.59	21.31%	0.67%	1.88%	2.91%
SITE	71 Outperform	5.76B	46.94	7.63%	―	4.38%	-18.94%
WSO	69 Neutral	16.23B	30.14	19.26%	2.86%	0.98%	0.80%
POOL	68 Neutral	$11.60B	28.67	30.02%	1.61%	-1.71%	-8.90%
CNM	61 Neutral	10.38B	23.52	22.85%	―	11.02%	7.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Pool Corporate Events

Pool Corporation Declares Quarterly Dividend Announcement

On July 30, 2025, Pool Corporation announced that its Board of Directors declared a quarterly cash dividend of $1.25 per share, payable on August 28, 2025, to shareholders of record on August 14, 2025. This announcement underscores Pool Corporation’s commitment to returning value to its shareholders and may influence its market positioning as a leading distributor in the swimming pool industry.

Pool Corporation Reports Q2 2025 Financial Results

On July 24, 2025, Pool Corporation reported its second quarter results, showing a 1% increase in net sales to $1.8 billion compared to the same period in 2024, driven by strong execution of strategic initiatives. The company achieved a gross margin of 30.0% and an operating income of $272.7 million. Despite a constrained market environment, Pool Corporation updated its annual earnings guidance to $10.80 – $11.30 per diluted share, reflecting confidence in its strategic initiatives and the strength of the outdoor living industry.

Pool Corporation Amends Credit Agreement for Flexibility

On July 10, 2025, Pool Corporation entered into a Fourth Amended and Restated Credit Agreement, which involved refinancing a $500 million term loan, extending its maturity to September 30, 2029, and removing a Term SOFR adjustment. The agreement maintains an $800 million unsecured revolving credit facility and includes features like an accordion feature for additional loans and the option to extend the maturity date. Additionally, Pool Corporation executed a Fourth Amendment to a separate Credit Agreement, aligning its maturity with the new agreement. These financial adjustments aim to enhance the company’s liquidity and financial flexibility, potentially impacting its operations and market positioning.