Latham Group (SWIM) AI Stock Analysis

• Market Cap: $775.76M
• Dividend Yield: N/A
• Average Volume (3M): 618.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 4.12%
• EPS Growth: -198.38%
• Country: US
• Employees: 1,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.09
• Shares Outstanding: 116,655,780
• 10 Day Avg. Volume: 843,640
• 30 Day Avg. Volume: 618,711
• PEG Ratio: -0.07
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 19.50
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 2.15
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: 14.31
• 1Y Price Target: $8.92
• Price Target Upside: 34.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $7.00 ▲(5.26% Upside)

Latham Group's overall stock score is driven by a positive earnings call highlighting strong sales and EBITDA growth, despite ongoing profitability challenges reflected in the financial performance and valuation scores. Technical analysis indicates bearish momentum, which tempers the overall score.

Positive Factors

Revenue Growth

The company's ability to achieve 7.6% revenue growth year-on-year, despite a flat market, indicates strong demand for its products and effective sales strategies, which are crucial for long-term growth.

Gross Margin Expansion

Improved gross margins through lean manufacturing and value engineering suggest enhanced operational efficiency, supporting sustainable profitability.

Financial Position

A strong cash position and reduced leverage enhance financial flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Profitability Challenges

Ongoing negative net profit margins highlight persistent profitability issues, which could hinder long-term financial health and shareholder returns.

Regional Market Challenges

Struggles in key markets like Texas and California could limit growth potential and require strategic adjustments to capture market share.

Tariff Impact

Ongoing tariff exposure necessitates supply chain adjustments and price increases, which may impact competitiveness and profit margins.

Latham Group Business Overview & Revenue Model

Company Description

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools, pool covers, and pool liners. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was incorporated in 2018 and is headquartered in Latham, New York.

How the Company Makes Money

Latham Group generates revenue primarily through the sale of its fiberglass swimming pools and related accessories. The company employs a direct sales model as well as partnerships with a network of dealers and distributors, allowing it to reach a wide customer base. Key revenue streams include the sale of in-ground pools, maintenance products, and installation services. Additionally, Latham Group benefits from seasonal demand for swimming pools, which can lead to significant sales spikes during warmer months. Strategic partnerships with pool builders and landscape companies also contribute to its earnings, facilitating expanded market reach and enhanced customer service.

Latham Group Financial Statement Overview

Summary

Latham Group shows signs of recovery with improved revenue growth and cost management. The balance sheet reflects reduced leverage, but profitability challenges persist with negative net income and return on equity. Cash flow management is strong, with significant improvement in free cash flow.

Income Statement

Latham Group's income statement shows a mixed performance. The company has experienced a slight revenue growth of 2.19% in the TTM period, but it is still recovering from a significant revenue decline in previous years. Gross profit margin has improved to 31.56%, indicating better cost management. However, the net profit margin remains negative at -2.07%, reflecting ongoing profitability challenges. The EBIT and EBITDA margins have improved, but the company is still struggling to achieve positive net income.

Balance Sheet

The balance sheet indicates a relatively stable financial position. The debt-to-equity ratio has significantly improved to 0.08 in the TTM period, suggesting reduced leverage and better financial health. However, the return on equity is negative at -3.35%, indicating that the company is not generating returns for its shareholders. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow growth, which increased by 101.14% in the TTM period. The operating cash flow to net income ratio is 0.47, indicating that the company is generating cash from operations despite negative net income. The free cash flow to net income ratio is 0.52, showing that the company is managing its cash flow effectively, although profitability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	533.24M	508.52M	566.49M	695.74M	630.46M	403.39M
Gross Profit	175.60M	153.74M	152.94M	216.47M	204.16M	142.77M
EBITDA	80.08M	60.55M	61.61M	79.62M	3.13M	66.38M
Net Income	-11.04M	-17.86M	-2.39M	-5.69M	-62.35M	15.98M
Balance Sheet
Total Assets	844.42M	794.21M	835.00M	869.68M	794.48M	646.68M
Cash, Cash Equivalents and Short-Term Investments	70.52M	56.40M	102.76M	32.63M	43.95M	59.31M
Total Debt	314.57M	310.83M	333.12M	352.19M	280.41M	221.50M
Total Liabilities	436.06M	406.99M	435.80M	486.89M	440.84M	365.07M
Stockholders Equity	408.36M	387.22M	399.20M	382.79M	353.64M	281.61M
Cash Flow
Free Cash Flow	23.86M	41.19M	83.18M	-7.38M	8.71M	46.90M
Operating Cash Flow	46.28M	61.31M	116.37M	32.31M	33.69M	63.16M
Investing Cash Flow	-27.83M	-84.64M	-31.73M	-45.02M	-108.20M	-115.81M
Financing Cash Flow	-6.74M	-22.02M	-13.88M	3.77M	60.02M	54.30M

Latham Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWIM, the sentiment is Positive. The current price of 6.65 is above the 20-day moving average (MA) of 6.38, below the 50-day MA of 6.67, and below the 200-day MA of 6.72, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 89.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWIM.

Latham Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BXC	66 Neutral	$591.37M	43.97	2.20%	―	-0.19%	-50.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JBI	62 Neutral	$989.83M	20.57	8.64%	―	-10.84%	-53.49%
ROCK	60 Neutral	$1.65B	747.30	13.29%	―	-9.21%	-97.43%
APOG	54 Neutral	$760.38M	19.11	7.73%	2.77%	1.19%	-56.98%
NX	54 Neutral	$808.44M	-3.25	-28.88%	2.12%	43.81%	-584.11%
SWIM	53 Neutral	$775.76M	-65.79	-2.68%	―	4.12%	-198.38%

Latham Group Corporate Events

Latham Group Announces Leadership Transition

Latham Group announced a leadership transition with Scott Rajeski retiring as President and CEO, effective January 4, 2026, and Sean Gadd taking over the role on January 5, 2026. Mr. Gadd, with extensive experience from James Hardie Building Products, is expected to drive strategic growth for Latham, while Rajeski will assist in the transition as a special advisor for six months.

The most recent analyst rating on (SWIM) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Latham Group stock, see the SWIM Stock Forecast page.