POOL  Pool Corporation

Exchange

NASDAQ

Sector

Consumer Durables

Industry

Industrial Specialties

Market Cap.

4.98B

Vuru Grade

51.67/100

Current Price

$120.55
+1.38 (+1.16%)

Growth Price

$29.30
Overvalued by 75.69%

Stability Price

$26.54
Overvalued by 77.99%

Company Metrics

  • P/E 33.35
  • P/S 1.89
  • P/B 22.12
  • EPS 3.62
  • Cash ROIC 18.31%
  • Cash Ratio 0.07
  • Dividend 1.48 / 1.24 %
  • Avg. Vol. 203,084.00
  • Shares 41.31M
  • Market Cap. 4.98B

Company Description

Pool Corporation operates as a wholesale distributor of swimming pool supplies, equipment, and related leisure products in North America and Europe. The company offers approximately 100,000 national brand and Pool Corporation branded products. It sells maintenance products, such as chemicals, supplies, and pool accessories; repair and replacement parts for cleaners, filters, heaters, pumps, and li... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Pool Corporation Acquires Lincoln Aquatics
SwimSwam - May 2, 2017
Pool Corporation (NASDAQ/GSM: POOL) announced today that it has acquired the assets of Lincoln Aquatics, a leading national distributor of equipment and supplies to commercial and institutional swimming pool customers, effective April 28, 2017.
Is Pool Corporation (POOL) Stock a Solid Choice Right Now?
Nasdaq - May 16, 2017
One stock that might be an intriguing choice for investors right now is Pool Corporation POOL . This is because this security in the Leisure and Recreation Products space is seeing solid earnings estimate revision activity, and is in great company from ...
Pool Corporation: Don't Jump In
Seeking Alpha - Mar 21, 2017
Pool Corporation is the world's largest wholesale distributor of swimming pool and related backyard products. The strong stock performance reflects increasing sales and profits due to gains in market share, an improving economy, and warmer-than-average ...
Pool Corporation (POOL) Ex-Dividend Date Scheduled for May 15, 2017
Nasdaq - May 12, 2017
Pool Corporation ( POOL ) will begin trading ex-dividend on May 15, 2017. A cash dividend payment of $0.37 per share is scheduled to be paid on May 31, 2017.
Pool Corporation CFO to Attend the 21st Annual Burkenroad Reports Investment ...
GlobeNewswire (press release) - Apr 21, 2017
COVINGTON, La., April 21, 2017 (GLOBE NEWSWIRE) -- Pool Corporation (NASDAQ:POOL) announced today that Mark W. Joslin, Senior Vice President and CFO, will be presenting at the 21st Annual Burkenroad Reports Investment Conference at the ...
Pool Corporation CEO to Attend the UBS Global Consumer and Retail Conference
GlobeNewswire (press release) - Mar 2, 2017
COVINGTON, La., March 02, 2017 (GLOBE NEWSWIRE) -- Pool Corporation (NASDAQ:POOL) announced today that Manuel J. Perez de la Mesa, President and CEO, will be participating in the UBS 6th Annual Global Consumer and Retail Conference on ...
Why Pool Corporation (POOL) Might Surprise This Earnings Season
Zacks.com - Apr 19, 2017
That is because Pool Corporation is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat.
BRIEF-Pool Corporation says chairman Sexton to retire
Reuters - Mar 3, 2017
Wilson "Rusty" B. Sexton has notified Pool Corporation board of directors he will be retiring from board at end of his current term.
Pool Corporation 2016 Year End Earnings Results Conference Call
GlobeNewswire (press release) - Feb 9, 2017
COVINGTON, La., Feb. 09, 2017 (GLOBE NEWSWIRE) -- Pool Corporation (NASDAQ:POOL), will hold a conference call to discuss 4th Quarter and 2016 Year End results on Thursday, February 16, 2017, at 10:00 a.m.
Pool Corporation Reports Record First Quarter Results and Updates 2017 ...
GlobeNewswire (press release) - Apr 20, 2017
Net income attributable to Pool Corporation, including the tax benefit of $5.5 million from the impact of adopting ASU 2016-09, was $22.3 million in the first quarter of 2017 compared to $16.4 million for the first quarter of 2016.
Pool Corporation (POOL) Moves Higher on Volume Spike for April 20 - Equities.com
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for POOL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate POOL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$120.55 Current Price

$29.30 Growth Price (DCF)

Overvalued by 75.69%


Growth Rate Assumed by Market: 41.73%


Future Free Cash Flow Growth Rate: 4.5%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$26.54 Stability Price (EPV)

Overvalued by 77.99%


Discount Rate: 15.0%

$40.46 Book Price

Overvalued by 66.44%


Excellent Cash Return on Invested Capital over the past 5 years

POOL has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

POOL has created $18.31 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 102.81M 86.35M 104.49M 116.96M 131.03M
divided by
Invested Capital 520.12M 551.85M 586.20M 617.95M 675.92M
Cash ROIC 19.77% 15.65% 17.82% 18.93% 19.38%

Excellent Return on Equity over the past 5 years

Over the past 5 years, POOL has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

POOL has generated $46.22 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 81.97M 97.33M 111.03M 128.22M 148.60M
divided by
Stockholders' Equity 281.62M 286.18M 244.35M 255.74M 205.21M
Return on Equity 29.11% 34.01% 45.44% 50.14% 72.42%

Excellent Business Performance over the past 10 years

POOL has been able to maintain profitability in good times and bad. This could mean POOL has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

POOL has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 61.02M 86.28M 106.08M 93.96M 55.65M 102.81M 86.35M 104.49M 116.96M 131.03M

Weak Balance Sheet

POOL's financial position is not ideal. The key is to check whether POOL is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 15.83M 15.76M 15.84M 9.72M 17.49M 12.46M 8.01M 14.83M 13.24M 21.96M
Current Assets 554.01M 556.84M 491.32M 476.59M 538.00M 543.10M 577.75M 637.21M 661.74M 695.56M
Total Assets 814.85M 830.91M 743.10M 728.55M 798.62M 780.58M 823.76M 892.94M 936.03M 994.10M
Current Liabilities 303.16M 262.29M 260.51M 211.54M 230.86M 248.00M 263.91M 291.91M 304.85M 296.22M
Total Liabilities 606.06M 589.17M 490.91M 443.36M 518.88M 498.95M 537.58M 648.59M 680.29M 788.89M
Stockholder' Equity 208.79M 241.73M 252.19M 285.18M 279.75M 281.62M 286.18M 244.35M 255.74M 205.21M
Current Ratio 1.83 2.12 1.89 2.25 2.33 2.19 2.19 2.18 2.17 2.35
TL-to-TA 0.74 0.71 0.66 0.61 0.65 0.64 0.65 0.73 0.73 0.79

Low or No Reinvestment of Profits over the past 10 years

POOL has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to POOL operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 29.04M 54.41M 47.13M 67.68M 34.30M 5.38M -27.28M -90.65M -104.71M -183.92M
Retained Earnings Growth - 87.33% -13.38% 43.61% -49.32% -84.32% -607.31% -232.32% -15.51% -75.64%

Highly Competitive Industry over the past 10 years

It's likely that POOL is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely POOL invests heavily in R&D and Sales, General & Administrative expenses.

Only $4.06 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 69.39M 56.96M 19.20M 57.64M 71.99M 81.97M 97.33M 111.03M 128.22M 148.60M
divided by
Revenue 1.93B 1.78B 1.54B 1.61B 1.79B 1.95B 2.08B 2.25B 2.36B 2.57B
Net Profit Margin 3.60% 3.19% 1.25% 3.57% 4.01% 4.20% 4.68% 4.94% 5.43% 5.78%

Inconsistent Gross Profit Margins over the past 10 years

POOL has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$35.83 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 530.65M 515.23M 449.72M 471.26M 1.79B 567.41M 591.28M 643.34M 675.64M 741.09M
divided by
Revenue 1.93B 1.78B 1.54B 1.61B 1.79B 1.95B 2.08B 2.25B 2.36B 2.57B
Gross Margin 27.52% 28.89% 29.21% 29.20% 100.00% 29.04% 28.43% 28.64% 28.59% 28.83%

Low Capital Intensity over the past 10 years

POOL has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that POOL may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

21.39% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 10.63M 7.00M 7.17M - 19.45M 16.27M 18.74M 17.33M 29.10M 34.35M
divided by
Net Income 69.39M 56.96M 19.20M 57.64M 71.99M 81.97M 97.33M 111.03M 128.22M 148.60M
Capital Expenditure Ratio 15.31% 12.30% 37.33% - 27.02% 19.85% 19.26% 15.61% 22.69% 23.12%

Very Strong Dividend History over the past 10 years

POOL has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests POOL is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 22.73M 24.43M 25.31M 25.75M 26.47M 29.14M 33.81M 37.60M 43.12M 49.75M
divided by
Shares Outstanding 50.80M 48.44M 49.05M 50.16M 48.99M 48.06M 47.53M 45.44M 44.25M 42.98M
Dividend Paid Per Share 0.45 0.50 0.52 0.51 0.54 0.61 0.71 0.83 0.97 1.16
Price at Year End 18.07 15.89 18.56 22.71 30.10 41.54 57.98 63.88 81.69 104.34
Dividend Yield 2.48% 3.17% 2.78% 2.26% 1.80% 1.46% 1.23% 1.30% 1.19% 1.11%

Strong History of Stock Buybacks over the past 10 years

POOL has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 50.80M 48.44M 49.05M 50.16M 48.99M 48.06M 47.53M 45.44M 44.25M 42.98M
Stock Bought Back - 4.87% -1.23% -2.22% 2.40% 1.93% 1.11% 4.60% 2.68% 2.95%
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