Latham Group (SWIM)
NASDAQ:SWIM
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Latham Group
(NASDAQ:SWIM)
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Rating:62Neutral
Price Target:
$5.00
▼(-21.14% Downside)
Action:Reiterated
Date:05/09/26
SWIM scores mid-range, led by improving financial stability (notably low leverage) and a generally positive earnings outlook with reaffirmed 2026 growth guidance and margin expansion. The score is held back by weak technical momentum (trading below major moving averages with bearish indicators), thin profitability/returns and softening free-cash-flow momentum, plus limited valuation support given the negative P/E and no dividend.
Positive Factors
Balance-sheet strength
Very low debt-to-equity (~0.09) and sizeable equity versus assets materially reduce refinancing and solvency risk. This durable capital structure supports investment in capacity, M&A and absorbent working-capital swings, preserving optionality over the next several quarters.
Negative Factors
Thin profitability and low returns
Persistently low net margin (~1.5%) and ~2% ROE mean earnings are highly sensitive to cost or volume shocks. Limited profitability constrains reinvestment, shareholder returns and the ability to absorb cyclical downturns, posing a multi-month headwind to improving returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Very low debt-to-equity (~0.09) and sizeable equity versus assets materially reduce refinancing and solvency risk. This durable capital structure supports investment in capacity, M&A and absorbent working-capital swings, preserving optionality over the next several quarters.
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
$619.93M
Dividend YieldN/A
Average Volume (3M)618.71K
Price to Earnings (P/E)72.2
Beta (1Y)1.13
Revenue Growth8.34%
EPS GrowthN/A
CountryUS
Employees1,800
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 Cap1.01
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit3.36
Enterprise Value/Ebitda7.08
Forecast
1Y Price Target
$7.00Price Target Upside10.41% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.19
Revenue Forecast (FY)$590.68M
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...
How the Company Makes Money
Latham Group makes money primarily by selling swimming pool products to trade customers involved in new pool builds and pool remodels (e.g., dealers, builders, and installers). Its key revenue stream is product sales of in-ground pool shells—parti...
Latham Group Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone: the company reported modest top-line growth across all product lines, meaningful margin expansion (gross margin +220 bps, adjusted EBITDA margin +40 bps), accretive M&A (Freedom Pools) and reaffirmed 2026 guidance for revenue and EBITDA growth. Management acknowledged near-term headwinds — higher SG&A (including a $9M earnout), a larger capex profile, Q1 operating cash outflow, weather-driven organic softness, and commodity/transportation cost risks (temporary fuel surcharge ~60 bps) — but emphasized operational levers (lean/value engineering, targeted marketing, dealer segmentation) and strong early-season order trends. On balance, the positives (growth, margin improvement, accretive acquisition, confident guidance and strategic growth initiatives) outweigh the negatives (higher operating expenses, seasonal cash usage, cost inflation risk), supporting an overall constructive outlook.Positive Updates
Top-line Growth and Composition
Net sales of $117M in Q1 2026, up 5% year-over-year ($111M in Q1 2025). Growth comprised 3% organic and 2% from the one-month contribution of the Freedom Pools acquisition.
Negative Updates
Widening Net Loss
Reported net loss of $9M ($0.07 per diluted share) in Q1 2026 versus a net loss of $6M ($0.05 per diluted share) in Q1 2025, driven primarily by higher SG&A.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line Growth and Composition
Net sales of $117M in Q1 2026, up 5% year-over-year ($111M in Q1 2025). Growth comprised 3% organic and 2% from the one-month contribution of the Freedom Pools acquisition.
Read all positive updates
Company Guidance
The company reaffirmed full-year 2026 guidance calling for roughly 9% revenue growth and about 13% adjusted EBITDA growth at the midpoint while assuming U.S. pool starts are flat year‑over‑year; guidance factors in a moderate increase in transportation and commodity costs (temporary fuel surcharges estimated to offset roughly 60 basis points of transportation pressure for the year). Q1 results supporting the outlook included net sales of $117 million (up 5% vs. $111M in Q1 2025; +3% organic, +2% from the one‑month Freedom Pools acquisition), in‑ground pool sales of $60M (+4%), cover sales $33M (+6%), liner sales $24M (+9%), gross margin of 32% (+220 bps), SG&A of $37M (+20% with SG&A expected to remain ~22.5% of sales), adjusted EBITDA of $12M (+9%) and a 10.4% adjusted EBITDA margin (+40 bps). The company ended Q1 with $27M cash, used $48M of cash in operations, carried $311M of total debt (net leverage 2.8x), incurred $23M of Q1 CapEx (and expects $42–48M for the year, including ~$25M of maintenance CapEx tied to acquired fiberglass facilities), and is carrying acquisition‑related earnout costs (~$2.3M in Q1; roughly $9M total for 2026); management also expects fiberglass to approach ~80% of full‑year in‑ground pool sales.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 | 34.84M | 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
Negative
6.34
Price Trends
5.56
Negative
6.04
Negative
6.66
Negative
Market Momentum
-0.12
Negative
46.74
Neutral
71.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWIM, the sentiment is Negative. The current price of 6.34 is above the 20-day moving average (MA) of 5.30, above the 50-day MA of 5.56, and below the 200-day MA of 6.66, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 46.74 is Neutral, neither overbought nor oversold. The STOCH value of 71.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Neutral | $820.09M | 14.99 | 10.79% | 2.77% | 3.21% | -34.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $619.93M | 72.17 | 2.13% | ― | 8.34% | ― | |
53 Neutral | $728.34M | 17.10 | 7.72% | ― | -2.54% | -11.47% | |
52 Neutral | $854.83M | -3.52 | -30.23% | 2.12% | 28.35% | -939.66% | |
47 Neutral | $404.61M | -101.41 | -0.65% | ― | 1.38% | -111.51% | |
46 Neutral | $1.15B | 128.43 | 0.94% | ― | -4.66% | -201.96% |
* Industrials Sector Average
SWIM
Latham Group
5.28
-0.31
-5.55%
APOG
Apogee
38.41
1.51
4.10%
BXC
Bluelinx Holdings
51.99
-12.75
-19.69%
ROCK
Gibraltar Industries
38.65
-18.57
-32.45%
NX
Quanex
18.61
2.62
16.36%
JBI
Janus International Group
5.34
-2.57
-32.49%
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.