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Pool
(NASDAQ:POOL)
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Rating:60Neutral
Price Target:
$199.00
▼(-12.57% Downside)
Action:Reiterated
Date:04/30/26
The score reflects solid cash generation and resilient profitability, supported by reiterated 2026 guidance and a constructive Q1. These positives are tempered by increased leverage and a premium P/E, while weak technical positioning (below longer-term moving averages with subdued RSI/stochastic) weighs on near-term outlook.
Positive Factors
Free Cash Flow Conversion
Consistently strong free cash flow (TTM ~ $605M) and high conversion (~86% of net income) underpin durable financial flexibility. This persistent cash generation funds dividends, buybacks and reinvestment in branches and technology, supporting resilient operations across seasonal cycles.
Negative Factors
Rising Leverage
A meaningful step-up in trailing leverage (TTM D/E ~1.30, total debt ~$1.2B) reduces financial flexibility and raises vulnerability to demand shocks. Higher leverage limits the firm's ability to absorb seasonal working-capital swings or invest opportunistically without increasing interest and refinancing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Conversion
Consistently strong free cash flow (TTM ~ $605M) and high conversion (~86% of net income) underpin durable financial flexibility. This persistent cash generation funds dividends, buybacks and reinvestment in branches and technology, supporting resilient operations across seasonal cycles.
Read all positive factors
Pool Key Performance Indicators (KPIs)
Pool (POOL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.00B
Dividend Yield2.15%
Average Volume (3M)1.18M
Price to Earnings (P/E)20.1
Beta (1Y)0.53
Revenue Growth1.79%
EPS Growth1.72%
CountryUS
Employees6,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)10.94
Shares Outstanding36,443,005
10 Day Avg. Volume1,776,821
30 Day Avg. Volume1,176,498
Financial Highlights & Ratios
PEG Ratio-4.98
Price to Book (P/B)7.17
Price to Sales (P/S)1.61
P/FCF Ratio27.46
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue1.61
Enterprise Value/Gross Profit5.41
Enterprise Value/Ebitda13.53
Forecast
1Y Price Target
$235.25Price Target Upside3.35% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)11.07
Revenue Forecast (FY)$5.43B
Pool Business Overview & Revenue Model
Company Description
Pool Corporation, established in 1993 and based in Covington, Louisiana, serves as a leading wholesale distributor of swimming pool essentials, outdoor living accessories, and related recreational merchandise. Operating extensively across the Unit...
How the Company Makes Money
Pool Corporation primarily makes money by selling pool and related outdoor-living products on a wholesale/distribution basis to trade customers. Its key revenue stream is product sales volume multiplied by gross margin, with major categories gener...
Pool Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presented a constructive start to the 2026 season with solid top-line growth (6%), operating income expansion (7%), EPS growth and confirmation of full-year guidance. Key strategic initiatives—private label, POOL360, selective sales center expansion and share repurchases—are delivering and management emphasized disciplined capital allocation. Headwinds include a modest gross margin compression (~20 bps) driven by mix and early-buy activity, a sizable seasonal inventory build (+14%), and measured consumer discretionary demand with isolated regional softness (Horizon -2%, Florida -1%). On balance, the operational and strategic positives (broad-based product growth, digital penetration, geographic strength, EPS up excl. ASU) outweigh the manageable near-term financial and working capital pressures.Positive Updates
Top-Line and Operating Performance
Net sales increased 6% year-over-year in Q1; operating income grew 7% and operating margin expanded by 10 basis points, demonstrating profitable revenue growth early in the season.
Negative Updates
Gross Margin Pressure
Reported gross margin was 29%, down approximately 20 basis points year-over-year. Primary drivers included product mix (equipment outgrowth, which carries lower relative margins), inbound freight and increased customer early-buy activity which carries modest discounts.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line and Operating Performance
Net sales increased 6% year-over-year in Q1; operating income grew 7% and operating margin expanded by 10 basis points, demonstrating profitable revenue growth early in the season.
Read all positive updates
Company Guidance
Guidance for 2026 was reiterated unchanged: full‑year diluted EPS of $10.87 to $11.17 (which includes the $0.02 ASU benefit recognized in Q1; no further ASU benefit assumed), with the midpoint implying roughly 2%–3% EPS growth versus prior year and same‑selling‑day top‑line expected to be low single‑digit growth; management expects a 1%–2% full‑year pricing benefit (Q1 pricing contributed ~3% to sales), gross margin to be roughly consistent with 2025, and expense growth to moderate through the year as greenfield absorption improves. Q1 metrics included net sales +6%, gross margin 29% (down ~20 bps), operating income $83M (+7%) with a 10‑bp operating margin expansion, operating expenses $247M (+5%), diluted EPS $1.45 (+$0.03; +$0.11 excl. ASU), POOL360 at 13% of sales, inventory $1.7B (+14% YoY, ~$200M above year‑end), total debt ~$1.2B (leverage 1.7x), net cash from ops $25.7M, share repurchases ~$64M in Q1 with $271M remaining, projected interest expense $49M–$51M (Q2 highest), and an estimated full‑year tax rate ~25% (Q2 ~25.5%); the company still expects to open 5 net new sales centers in 2026 (455 total) and continue disciplined capital allocation.Pool Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
54
Neutral
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.36B | 5.29B | 5.31B | 5.54B | 6.18B | 5.30B |
| Gross Profit | 1.59B | 1.57B | 1.58B | 1.66B | 1.93B | 1.62B |
| EBITDA | 636.21M | 631.81M | 662.68M | 786.71M | 1.06B | 862.81M |
| Net Income | 406.09M | 406.40M | 434.32M | 523.23M | 748.46M | 650.62M |
Balance Sheet | ||||||
| Total Assets | 4.00B | 3.63B | 3.37B | 3.43B | 3.57B | 3.23B |
| Cash, Cash Equivalents and Short-Term Investments | 64.46M | 104.96M | 77.86M | 66.54M | 45.59M | 24.32M |
| Total Debt | 1.59B | 1.54B | 1.27B | 1.36B | 1.66B | 1.43B |
| Total Liabilities | 2.87B | 2.44B | 2.09B | 2.12B | 2.33B | 2.16B |
| Stockholders Equity | 1.13B | 1.19B | 1.27B | 1.31B | 1.24B | 1.07B |
Cash Flow | ||||||
| Free Cash Flow | 605.10M | 309.52M | 599.71M | 828.13M | 441.24M | 275.83M |
| Operating Cash Flow | 704.48M | 365.85M | 659.19M | 888.23M | 484.85M | 313.49M |
| Investing Cash Flow | -122.02M | -67.79M | -66.17M | -71.60M | -50.87M | -849.61M |
| Financing Cash Flow | -526.15M | -273.38M | -576.55M | -798.13M | -411.66M | 526.13M |
Pool Technical Analysis
Positive
227.62
Price Trends
195.34
Positive
206.86
Positive
234.24
Negative
Market Momentum
6.22
Negative
69.55
Neutral
90.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POOL, the sentiment is Positive. The current price of 227.62 is above the 20-day moving average (MA) of 196.97, above the 50-day MA of 195.34, and below the 200-day MA of 234.24, indicating a neutral trend. The MACD of 6.22 indicates Negative momentum. The RSI at 69.55 is Neutral, neither overbought nor oversold. The STOCH value of 90.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $12.23B | 30.83 | 21.64% | 0.70% | 7.54% | 6.04% | |
70 Outperform | $16.48B | 33.56 | 17.84% | 3.38% | -4.53% | -7.76% | |
69 Neutral | $15.00B | 21.62 | 13.70% | 0.72% | 11.16% | 6.33% | |
69 Neutral | $8.69B | 18.88 | 22.73% | ― | 0.46% | 8.94% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $8.00B | 20.06 | 32.50% | 2.15% | 1.79% | 1.72% | |
55 Neutral | $4.98B | 33.15 | 9.22% | ― | 2.85% | 33.21% |
* Industrials Sector Average
POOL
Pool
219.47
-75.95
-25.71%
AIT
Applied Industrial Technologies
330.85
86.82
35.58%
WSO
Watsco
404.71
-38.82
-8.75%
WCC
Wesco International
307.89
114.97
59.60%
SITE
SiteOne Landscape Supply
112.39
-17.35
-13.37%
CNM
Core & Main
44.93
-17.40
-27.92%
Pool Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Pool Corp appoints new CEO amid leadership transition
Neutral
May 4, 2026
On May 4, 2026, Pool Corporation announced a leadership shake-up, with President and CEO Peter D. Arvan stepping down from his executive roles and resigning from the board, a move the company said did not stem from any disagreement over its operat...
Stock BuybackDividendsShareholder Meetings
Pool Expands Buyback Program and Increases Quarterly Dividend
Positive
Apr 29, 2026
On April 29, 2026, Pool Corporation’s board expanded its share repurchase authorization to $600 million, adding $329 million to the $271 million remaining under the prior program, and raised the quarterly dividend by 4% to $1.30 per share, p...
Business Operations and StrategyStock BuybackFinancial Disclosures
Pool Corporation Reports Solid First-Quarter 2026 Results
Positive
Apr 23, 2026
On April 23, 2026, Pool Corporation reported first-quarter 2026 net sales of $1.14 billion, up 6% year-on-year, driven by resilient maintenance demand, strong equipment sales and a gradual recovery in discretionary categories such as building mate...
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.