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Latham Group
(NASDAQ:SWIM)
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Rating:63Neutral
Price Target:
$6.00
▲(9.09% Upside)
Action:Reiterated
Date:08/05/26
SWIM’s score is driven mainly by improving financial stability (notably a much stronger leverage profile and positive cash flow) and an upbeat earnings update with raised full-year guidance. Offsetting these positives are weak technical trends (price below key moving averages with negative MACD) and a demanding valuation (high P/E with no dividend yield), which reduce the overall attractiveness today.
Positive Factors
Fiberglass / in-ground market position
Latham's strong share gains in fiberglass in‑ground pools and a leading brand presence create durable structural demand. Fiberglass adoption increases attachment rates, dealer preference, and pricing leverage across cycles, supporting sustained revenue per installation and competitive advantage over commodity competitors.
Negative Factors
Thin profitability and low returns
Very low net margins and ROE constrain the company's ability to self-fund growth and leave limited earnings cushion against cost shocks. Thin profitability makes results sensitive to commodity, freight, or pricing swings and slows accumulation of retained earnings needed for long‑term strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Fiberglass / in-ground market position
Latham's strong share gains in fiberglass in‑ground pools and a leading brand presence create durable structural demand. Fiberglass adoption increases attachment rates, dealer preference, and pricing leverage across cycles, supporting sustained revenue per installation and competitive advantage over commodity competitors.
Read all positive factors
Latham Group Key Performance Indicators (KPIs)
Any
Revenue by Product Line
Shows how sales are split across Latham’s product lines (for example, pool shells, equipment, filtration systems, and renovation services). Reveals which businesses drive growth and profitability, highlights where margins are strongest, and signals how diversified the company’s revenue base is. A shift toward higher-margin lines or services can improve earnings, while heavy reliance on one product increases exposure to seasonality, housing-market swings, and supply-chain disruption.
Shows how sales are split across Latham’s product lines (for example, pool shells, equipment, filtration systems, and renovation services). Reveals which businesses drive growth and profitability, highlights where margins are strongest, and signals how diversified the company’s revenue base is. A shift toward higher-margin lines or services can improve earnings, while heavy reliance on one product increases exposure to seasonality, housing-market swings, and supply-chain disruption.
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The Fly
The FlyLatham Group (SWIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$629.33M
Dividend YieldN/A
Average Volume (3M)618.71K
Price to Earnings (P/E)70.0
Beta (1Y)1.18
Revenue Growth8.34%
EPS GrowthN/A
CountryUS
Employees1,804
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)0.08
Shares Outstanding117,411,590
10 Day Avg. Volume843,640
30 Day Avg. Volume618,711
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)1.82
Price to Sales (P/S)1.35
P/FCF Ratio28.39
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$7.16Price Target Upside30.23% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.19
Revenue Forecast (FY)$590.40M
Latham Group Business Overview & Revenue Model
Company Description
Latham Group, Inc. is a company that focuses on the creation, manufacturing, and distribution of residential in-ground swimming pools. Its market presence spans North America, Australia, and New Zealand. The firm's product range encompasses variou...
How the Company Makes Money
Latham Group makes money primarily by selling in-ground swimming pool products to trade customers (e.g., independent dealers, pool builders/installers, and related distributors) rather than directly to most end consumers. Its core revenue stream i...
Latham Group Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed a positive operational and demand story: strong top-line growth (14% YoY), robust in-ground/fiberglass momentum, improved consumer demand KPIs, and upgraded full-year guidance. Management acknowledged short-term margin pressure from an unexpectedly rapid Q2 ramp, higher SG&A from growth investments, FX losses and transportation headwinds, but expects most ramp costs to be recaptured and sees continued upside from strategic initiatives (Sand States expansion, lean programs, M&A optionality). Given the outsized revenue and organic growth, raised guidance, and management’s plan to recover temporary inefficiencies, positives meaningfully outweigh the near-term challenges.Positive Updates
Strong Top-Line Growth
Net sales of $197.0M in Q2 2026, up 14% YoY from $173.0M; organic growth 10% and 4% of growth from the Freedom Pools acquisition completed Feb 2026.
Negative Updates
Gross Margin Contraction
Gross margin declined to 35.5% in Q2, down 160 basis points YoY. Company reported ~$2.8M of incremental ramp-up costs creating ~140 bps headwind; a portion expected to be recovered in H2.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Net sales of $197.0M in Q2 2026, up 14% YoY from $173.0M; organic growth 10% and 4% of growth from the Freedom Pools acquisition completed Feb 2026.
Read all positive updates
Company Guidance
Latham raised its full‑year 2026 guidance, moving the midpoint of net sales growth to 11.7% (from 9%) and the midpoint of adjusted EBITDA growth to 15.2% (from 12.7%), citing Q2 results that included net sales of $197.0M (+14% YoY: +10% organic, +4% from the Freedom Pools acquisition), in‑ground pool sales of $96.0M (+23% YoY, +14% organic), cover sales of $41.0M (+10%), liner sales of $60.0M (+6%), gross profit of $70.0M (+9.6%) with gross margin at 35.5% (‑160 bps), adjusted EBITDA margin of 22.6% (vs. 23.1% LY), and net income of $13.0M ($0.11/share); management expects to recapture the majority of the ~$2.8M Q2 ramp‑up costs (a ~140‑bp gross‑margin headwind) over the next two quarters, reiterated capex (Q2 $6M; H1 $28.1M), noted the $17M Freedom Pools deal, reported total debt of $280M (net leverage 2.2 targeting <2.0 by year‑end), and flagged mitigation actions—pricing and a freight surcharge—for Middle East‑driven commodity/transportation pressures.Latham Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 551.81M | 545.91M | 508.52M | 566.49M | 695.74M | 630.46M |
| Gross Profit | 186.36M | 182.09M | 153.74M | 152.94M | 216.47M | 204.16M |
| EBITDA | 88.40M | 90.65M | 60.55M | 61.61M | 79.62M | 3.13M |
| Net Income | 8.55M | 11.12M | -17.86M | -2.39M | -5.69M | -62.35M |
Balance Sheet | ||||||
| Total Assets | 856.40M | 823.22M | 794.21M | 835.00M | 869.68M | 794.48M |
| Cash, Cash Equivalents and Short-Term Investments | 27.48M | 71.04M | 56.40M | 102.76M | 32.63M | 43.95M |
| Total Debt | 33.67M | 311.44M | 310.83M | 333.12M | 352.19M | 280.41M |
| Total Liabilities | 459.70M | 417.36M | 406.99M | 435.80M | 486.89M | 440.84M |
| Stockholders Equity | 396.70M | 405.86M | 387.22M | 399.20M | 382.79M | 353.64M |
Cash Flow | ||||||
| Free Cash Flow | 18.16M | 26.05M | 41.19M | 83.18M | -7.38M | 8.71M |
| Operating Cash Flow | 50.59M | 51.43M | 61.31M | 116.37M | 32.31M | 33.69M |
| Investing Cash Flow | -46.83M | -30.32M | -84.64M | -31.73M | -45.02M | -108.20M |
| Financing Cash Flow | -1.06M | -6.97M | -22.02M | -13.88M | 3.77M | 60.02M |
Latham Group Technical Analysis
Positive
5.50
Price Trends
5.78
Positive
5.69
Positive
6.21
Positive
Market Momentum
0.05
Negative
72.19
Negative
76.61
Neutral
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 5.5 is below the 20-day moving average (MA) of 5.85, below the 50-day MA of 5.78, and below the 200-day MA of 6.21, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 72.19 is Negative, neither overbought nor oversold. The STOCH value of 76.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWIM.
Latham Group Risk Analysis
Latham Group disclosed 35 risk factors in its most recent earnings report. Latham Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Latham Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $826.38M | 12.30 | 13.43% | 2.63% | 1.79% | 36.42% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $629.33M | 69.97 | 1.31% | ― | 8.34% | ― | |
61 Neutral | $699.69M | 16.42 | 7.72% | ― | -2.54% | -11.47% | |
57 Neutral | $421.96M | -106.31 | -0.31% | ― | 1.38% | -111.51% | |
53 Neutral | $819.35M | -3.22 | -35.45% | 1.72% | 14.25% | -1038.06% | |
52 Neutral | $1.25B | 136.32 | 1.12% | ― | -4.66% | -201.96% |
* Industrials Sector Average
SWIM
Latham Group
7.30
>-0.01
-0.14%
APOG
Apogee
42.96
2.52
6.24%
BXC
Bluelinx Holdings
72.54
-1.34
-1.81%
ROCK
Gibraltar Industries
54.86
-5.22
-8.69%
NX
Quanex
20.88
1.57
8.14%
JBI
Janus International Group
5.64
-4.20
-42.68%
Latham Group Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Latham Group Shareholders Approve Expanded Equity Incentive Plan
Positive
May 5, 2026
At its April 30, 2026 annual meeting, Latham Group stockholders approved a second amendment to the company’s 2021 Omnibus Equity Incentive Plan, increasing the share pool by 3.4 million shares available for future equity awards while leaving...
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.