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Pool Corporation (POOL)
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Pool (POOL) AI Stock Analysis

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POOL

Pool

(NASDAQ:POOL)

Rating:69Neutral
Price Target:
$340.00
▲(11.57% Upside)
Pool Corporation's overall stock score reflects its solid financial performance and strategic initiatives, tempered by valuation concerns and mixed technical indicators. The company's stable profitability and efficient cash flow generation are significant strengths, while challenges in new pool construction and economic uncertainties present risks.
Positive Factors
Guidance
Shares are trading up 1% following an in-line quarter and better-than-feared full-year guidance cut.
Market Share
Pool is taking market share due to initiatives.
Negative Factors
Interest Rates
The pool market remains challenged due to high interest rates.
Revenue Decline
The company's revenues declined due to lower sales in building materials, equipment, and specific regional segments.

Pool (POOL) vs. SPDR S&P 500 ETF (SPY)

Pool Business Overview & Revenue Model

Company DescriptionPool 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 MoneyPool 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 Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted stable sales growth and strong performance in certain regions and segments like digital platforms and franchises. However, challenges in new pool construction, particularly in Texas and California, and pricing pressures in chemicals weighed on the results, alongside a lowered EPS guidance reflecting economic uncertainties. Overall, the sentiment is mixed with a balanced outlook.
Q2-2025 Updates
Positive Updates
Positive Sales Growth and Stable Margins
The company reported $1.8 billion in net sales for the second quarter, up 1%, with stable gross margins at 30%. This reflects the team's efforts in strategic areas of the business.
Regional Performance in Florida and Arizona
Florida and Arizona outperformed national averages with 2% sales growth, fueled by population growth and favorable weather patterns.
European Market Growth
Net sales in Europe increased by 2% in local currency and 7% in U.S. dollars, with growth in most European economies.
Digital Platform Expansion
POOL360 platform transactions now represent 17% of net sales, up from 14.5% last year, indicating strong customer adoption.
Pinch A Penny Franchise Growth
The Pinch A Penny network added 5 new stores, increasing locations to 302. Sales increased by 1% for the quarter.
Negative Updates
Challenges in New Pool Construction
New pool construction is down high single digits, with macroeconomic factors and interest rates affecting larger renovation projects.
Sales Decline in Texas and California
Texas and California faced challenges with new pool construction, experiencing sales declines of 2% and 3% respectively.
Horizon Segment Sales Decline
Horizon segment net sales declined 2% in the quarter due to weakness in larger development-related construction projects.
Chemical Pricing Pressure
Chemical sales grew only 1% despite price deflation, with trichlor selling prices lower than the previous year.
Lowered EPS Guidance
Diluted earnings per share guidance for the year was updated to a range of $10.80 to $11.30, reflecting ongoing economic pressures.
Company Guidance
During the Pool Corporation's second-quarter 2025 conference call, the company reported $1.8 billion in net sales, marking a 1% increase over the previous year. Gross margins remained stable at 30%, and operating margins were also steady. Regionally, sales growth varied, with Florida and Arizona experiencing a 2% increase, while Texas and California saw declines of 2% and 3%, respectively. In Europe, sales increased by 2% in local currency and 7% in U.S. dollars. The company highlighted strong performance in maintenance products, particularly private label chemical products, and an improvement in building material sales, which declined by only 1%. The company also reported a 5% increase in commercial sales. Looking ahead, Pool Corporation updated its diluted earnings per share guidance to a range of $10.80 to $11.30 for the year, citing concerns over macroeconomic conditions and interest rates impacting new pool construction and renovation projects.

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
75
Positive
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
68
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.31B5.54B6.18B5.30B3.94B
Gross Profit1.58B1.66B1.93B1.62B1.13B
EBITDA662.68M786.71M1.06B862.81M493.43M
Net Income434.32M523.23M748.46M650.62M366.74M
Balance Sheet
Total Assets3.37B3.43B3.57B3.23B1.74B
Cash, Cash Equivalents and Short-Term Investments77.86M66.54M45.59M24.32M34.13M
Total Debt1.27B1.36B1.66B1.43B623.84M
Total Liabilities2.09B2.12B2.33B2.16B1.10B
Stockholders Equity1.27B1.31B1.24B1.07B639.47M
Cash Flow
Free Cash Flow599.71M828.13M441.24M275.83M375.88M
Operating Cash Flow659.19M888.23M484.85M313.49M397.58M
Investing Cash Flow-66.17M-71.60M-50.87M-849.61M-146.29M
Financing Cash Flow-576.55M-798.13M-411.66M526.13M-244.37M

Pool Technical Analysis

Technical Analysis Sentiment
Negative
Last Price304.74
Price Trends
50DMA
308.54
Negative
100DMA
304.35
Positive
200DMA
322.88
Negative
Market Momentum
MACD
0.19
Positive
RSI
43.48
Neutral
STOCH
14.68
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 304.74 is below the 20-day moving average (MA) of 314.81, below the 50-day MA of 308.54, and below the 200-day MA of 322.88, indicating a bearish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 14.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POOL.

Pool Risk Analysis

Pool disclosed 23 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$9.93B25.9922.24%0.67%1.88%2.91%
78
Outperform
$10.66B17.1513.78%0.80%1.30%-1.09%
77
Outperform
$6.39B51.597.76%4.38%-18.94%
76
Outperform
$12.76B29.9925.11%10.80%0.98%
69
Neutral
$16.06B30.1818.38%2.90%0.98%0.80%
69
Neutral
$11.38B28.1530.02%1.61%-1.71%-8.90%
64
Neutral
$10.66B15.608.14%2.00%2.79%-14.82%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
POOL
Pool
304.74
-32.24
-9.57%
AIT
Applied Industrial Technologies
261.53
67.39
34.71%
WSO
Watsco
393.44
-45.80
-10.43%
WCC
Wesco International
217.89
67.42
44.81%
SITE
SiteOne Landscape Supply
142.87
8.16
6.06%
CNM
Core & Main
64.57
26.57
69.92%

Pool Corporate Events

Dividends
Pool Corporation Declares Quarterly Dividend Announcement
Positive
Jul 30, 2025

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.

Business Operations and StrategyFinancial Disclosures
Pool Corporation Reports Q2 2025 Financial Results
Positive
Jul 24, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Pool Corporation Amends Credit Agreement for Flexibility
Positive
Jul 14, 2025

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.

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.Date of analysis: Aug 30, 2025