Pool CorporationPOOL
NASDAQ • Industrials
$216.03
P/E
19.85
PEG
1.60
FCF Yield
4.5%
Rev Growth YoY
-0.5% YoY
Gross Margin
29.7%
Health Score
6/10
D/E Ratio
1.01
Confidence
MEDIUM
Business Snapshot
Pool Corporation (POOL) is the world's largest wholesale distributor of swimming pool supplies, equipment, and related leisure products, serving pool builders, retailers, and service companies across North America and Europe. The company operates within the Industrial Distribution segment on the NASDAQ. At a market cap of $7.91B, POOL sits firmly in the large-cap tier.
Financial Health
Score: 6/10 Pool Corporation maintains a healthy gross margin of 29.7% and generates meaningful free cash flow of $355.74M (FCF yield of 4.5%), providing a solid liquidity cushion. However, the net margin of 7.7% is modest for a distributor of this scale, reflecting the thin-margin nature of wholesale distribution...
Risk Assessment
- EARNINGS DETERIORATION: Earnings declined -12.9% YoY and the company missed analyst estimates in all 4 of the most recent quarters, signalling consistent execution risk.
- TECHNICALS: A confirmed death cross (50-day MA of $224.38 crossing below the 200-day MA of $268.54) indicates sustained bearish price momentum, with the current price of $216.03 below both averages.
- VALUATION VS. DCF: The Python DCF estimate of $134.06 implies a ~61% downside from current price at a -0.5% growth rate and 9.0% WACC.
- PRICE FROM 52-WEEK HIGH: The stock trades at $216.03, down approximately 37% from its 52-week high of $345.00, suggesting material loss of investor confidence over the past year.
- REVENUE STAGNATION: TTM revenue growth of -0.5% indicates Pool's end markets (residential pool construction and maintenance) have cooled materially from post-pandemic peaks.
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**Score: 6/10** Pool Corporation maintains a healthy gross margin of 29.7% and generates meaningful free cash flow of $355.74M (FCF yield of 4.5%), providing a solid liquidity cushion. However, the net margin of 7.7% is modest for a distributor of this scale, reflecting the thin-margin nature of wholesale distribution. Debt/equity of 1.01x is manageable but not negligible, while the current ratio of 2.24x signals adequate short-term liquidity. The return on equity of 33.1% is a standout metric, indicating efficient use of shareholder capital despite moderate leverage. ---
- **EARNINGS DETERIORATION:** Earnings declined -12.9% YoY and the company missed analyst estimates in all 4 of the most recent quarters, signalling consistent execution risk. - **TECHNICALS:** A confirmed death cross (50-day MA of $224.38 crossing below the 200-day MA of $268.54) indicates sustained bearish price momentum, with the current price of $216.03 below both averages. - **VALUATION VS. DCF:** The Python DCF estimate of $134.06 implies a ~61% downside from current price at a -0.5% growth rate and 9.0% WACC. - **PRICE FROM 52-WEEK HIGH:** The stock trades at $216.03, down approximately 37% from its 52-week high of $345.00, suggesting material loss of investor confidence over the past year. - **REVENUE STAGNATION:** TTM revenue growth of -0.5% indicates Pool's end markets (residential pool construction and maintenance) have cooled materially from post-pandemic peaks. ---
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