POOL  Pool Corporation

Exchange

NASDAQ

Sector

Consumer Durables

Industry

Industrial Specialties

Market Cap.

4.79B

Vuru Grade

52.26/100

Current Price

$116.10
+1.15 (+1.00%)

Growth Price

$27.95
Overvalued by 75.93%

Stability Price

$69.55
Overvalued by 40.09%

Company Metrics

  • P/E 33.46
  • P/S 1.84
  • P/B 23.09
  • EPS 3.47
  • Cash ROIC 16.46%
  • Cash Ratio 0.04
  • Dividend 1.24 / 1.07%
  • Avg. Vol. 209,074.00
  • Shares 41.26M
  • Market Cap. 4.79B

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

Insider Trading Activity Pool Corporation (NASDAQ:POOL) – CEO Sold 21500 ...
Market Exclusive - Feb 24, 2017
On 6/21/2013 James J Gaffney, Director Sell, 9,981 $50.74 with an average share price of $506,435.94 View SEC Filing 5/7/2013 per share and the total transaction amounting to Jennifer M Neil.
Earnings Of $0.39 Predicted For Pool Corporation (NASDAQ:POOL) - Markets Daily
The Pool Corporation (POOL) Expected to Post Q1 2017 Earnings of $0.40 Per Share - DailyQuint
Pool Corporation Reports Record 2016 Results and Provides 2017 Earnings Guidance
Yahoo Finance - Feb 16, 2017
Net income attributable to Pool Corporation increased 16% to a record $149.0 million in 2016 compared to $128.3 million in 2015.
Robert W. Baird Just Issued ” Outperform” Rating on Pool Corporation (POOL) - Highland Mirror
Pool's Valuations Can Only Stay Afloat For So Long
Seeking Alpha - Jan 31, 2017
At current valuations, Pool Corporation (POOL) is priced like a company expected to see significant profitability improvements on a sustained basis.
Pool Corporation - Water Hazard
Seeking Alpha - Jun 23, 2016
The key growth driver for the industry is new swimming pool construction. New pool construction competes for a customer's discretionary spending dollars against kitchen and bathroom remodeling, purchases of boats, motorcycles and recreational vehicles ...
Pool Corp (POOL) PT Raised to $120 at Wedbush Ahead of 4Q Report
StreetInsider.com - Feb 14, 2017
Wedbush Securities analyst Al Kaschalk reiterates Outperform rating and raises price target on Pool Corporation (NASDAQ: POOL) to $120 (from $119), estimating an in-line quarter coupled with 2017 guidance of 5-6% top line growth for the company.
Analyst Activity – Wedbush Raises Its Price Target On Pool Corporation (NASDAQ ... - Market Exclusive
Wedbush Just Issued “Outperform” Rating on Pool Corporation (POOL) - Highland Mirror
Pool Corporation (POOL) Moves Higher on Volume Spike for February 17
Equities.com - Feb 17, 2017
Pool Corporation (POOL) traded on unusually high volume on Feb. 17, as the stock gained 1.94% to close at $116.61. On the day, Pool Corporation saw 399,541 shares trade hands on 4,284 trades. Considering that the stock averages only a daily volume of ...
Pool Corporation (NASDAQ:POOL) Upside Stock Technicals at Extreme Strength
CML News - Feb 24, 2017
This is a technical analysis stock rating for Pool Corporation (NASDAQ:POOL) . The company has a five bull technical rating which indicates extreme strength.
Option Market: Pool Corporation Risk Hits A Deteriorated Level
CML News - Feb 21, 2017
We're going to look at a proprietary risk rating for the next 30-days built by Capital Market Laboratories (CMLviz) based on a large number of interactions of data points, many of which come directly from the option market for Pool Corporation (NASDAQ ...
Pool Corporation Risk Points versus Consumer Staples
CML News - Feb 20, 2017
This is a scatter plot analysis of the critical risk points from the option market for Pool Corporation (NASDAQ:POOL) compared to its own past and the Consumer Staples ETF.
Pool Corporation (POOL) Stock Price Target Moved to $120.00 at Wedbush
The Ledger Gazette - Feb 14, 2017
Pool Corporation (NASDAQ: POOL) shares rose on Tuesday February 14 on lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock, raising the price target of stock.
The UBS Asset Management Americas Inc. Raises Position in Pool Corporation (POOL) - DailyQuint
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.

$116.10 Current Price

$27.95 Growth Price (DCF)

Overvalued by 75.93%


Growth Rate Assumed by Market: 43.19%


Future Free Cash Flow Growth Rate: 4.5%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$69.55 Stability Price (EPV)

Overvalued by 40.09%


Discount Rate: 15.0%

$45.09 Book Price

Overvalued by 61.16%


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 $16.46 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 55.65M 102.81M 86.35M 104.49M 116.96M
divided by
Invested Capital 550.28M 520.12M 551.85M 586.20M 617.95M
Cash ROIC 10.11% 19.77% 15.65% 17.82% 18.93%

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 $36.89 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 71.99M 81.97M 97.33M 111.03M 128.22M
divided by
Stockholders' Equity 279.75M 281.62M 286.18M 244.35M 255.74M
Return on Equity 25.74% 29.11% 34.01% 45.44% 50.14%

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
2006200720082009201020112012201320142015
Free Cash Flow 54.23M 61.02M 86.28M 106.08M 93.96M 55.65M 102.81M 86.35M 104.49M 116.96M

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
2006200720082009201020112012201320142015
Cash 16.73M 15.83M 15.76M 15.84M 9.72M 17.49M 12.46M 8.01M 14.83M 13.24M
Current Assets 519.42M 554.01M 556.84M 491.32M 476.59M 538.00M 543.10M 577.75M 637.21M 661.74M
Total Assets 774.56M 814.85M 830.91M 743.10M 728.55M 798.62M 780.58M 823.76M 892.94M 936.03M
Current Liabilities 291.79M 303.16M 262.29M 260.51M 211.54M 230.86M 248.00M 263.91M 291.91M 304.85M
Total Liabilities 496.88M 606.06M 589.17M 490.91M 443.36M 518.88M 498.95M 537.58M 648.59M 680.29M
Stockholder' Equity 277.68M 208.79M 241.73M 252.19M 285.18M 279.75M 281.62M 286.18M 244.35M 255.74M
Current Ratio 1.78 1.83 2.12 1.89 2.25 2.33 2.19 2.19 2.18 2.17
TL-to-TA 0.64 0.74 0.71 0.66 0.61 0.65 0.64 0.65 0.73 0.73

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
2006200720082009201020112012201320142015
Retained Earnings 129.93M 29.04M 54.41M 47.13M 67.68M 34.30M 5.38M -27.28M -90.65M -104.71M
Retained Earnings Growth - -77.65% 87.33% -13.38% 43.61% -49.32% -84.32% -607.31% -232.32% -15.51%

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 $3.98 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 95.02M 69.39M 56.96M 19.20M 57.64M 71.99M 81.97M 97.33M 111.03M 128.22M
divided by
Revenue 1.91B 1.93B 1.78B 1.54B 1.61B 1.79B 1.95B 2.08B 2.25B 2.36B
Net Profit Margin 4.98% 3.60% 3.19% 1.25% 3.57% 4.01% 4.20% 4.68% 4.94% 5.43%

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.

$35.78 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
2006200720082009201020112012201320142015
Gross Profit 539.95M 530.65M 515.23M 449.72M 471.26M 1.79B 567.41M 591.28M 643.34M 675.64M
divided by
Revenue 1.91B 1.93B 1.78B 1.54B 1.61B 1.79B 1.95B 2.08B 2.25B 2.36B
Gross Margin 28.27% 27.52% 28.89% 29.21% 29.20% 100.00% 29.04% 28.43% 28.64% 28.59%

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.

20.55% 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
2006200720082009201020112012201320142015
Capital Expenditure 14.78M 10.63M 7.00M 7.17M - 19.45M 16.27M 18.74M 17.33M 29.10M
divided by
Net Income 95.02M 69.39M 56.96M 19.20M 57.64M 71.99M 81.97M 97.33M 111.03M 128.22M
Capital Expenditure Ratio 15.55% 15.31% 12.30% 37.33% - 27.02% 19.85% 19.26% 15.61% 22.69%

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
2006200720082009201020112012201320142015
Dividend Paid 21.08M 22.73M 24.43M 25.31M 25.75M 26.47M 29.14M 33.81M 37.60M 43.12M
divided by
Shares Outstanding 54.66M 50.80M 48.44M 49.05M 50.16M 48.99M 48.06M 47.53M 45.44M 44.25M
Dividend Paid Per Share 0.39 0.45 0.50 0.52 0.51 0.54 0.61 0.71 0.83 0.97
Price at Year End 34.87 18.07 15.89 18.56 22.71 30.10 41.54 57.98 63.88 81.69
Dividend Yield 1.11% 2.48% 3.17% 2.78% 2.26% 1.80% 1.46% 1.23% 1.30% 1.19%

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
2006200720082009201020112012201320142015
Shares Outstanding 54.66M 50.80M 48.44M 49.05M 50.16M 48.99M 48.06M 47.53M 45.44M 44.25M
Stock Bought Back - 7.60% 4.87% -1.23% -2.22% 2.40% 1.93% 1.11% 4.60% 2.68%
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