Pool Corporation Fundamental Analysis
Pool Corporation (POOL) shows moderate financial fundamentals with a PE ratio of 18.94, profit margin of 7.58%, and ROE of 32.50%. The company generates $5.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze POOL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPOOL demonstrates superior asset utilization.
Valuation Score
ModeratePOOL shows balanced valuation metrics.
Growth Score
ModeratePOOL shows steady but slowing expansion.
Financial Health Score
ModeratePOOL shows balanced financial health with some risks.
Profitability Score
ModeratePOOL maintains healthy but balanced margins.
Key Financial Metrics
Is POOL Expensive or Cheap?
P/E Ratio
POOL trades at 18.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, POOL's PEG of 9.23 indicates potential overvaluation.
Price to Book
The market values Pool Corporation at 6.65 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.47 times EBITDA. This is generally considered low.
How Well Does POOL Make Money?
Net Profit Margin
For every $100 in sales, Pool Corporation keeps $7.58 as profit after all expenses.
Operating Margin
Core operations generate 10.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.50 in profit for every $100 of shareholder equity.
ROA
Pool Corporation generates $10.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pool Corporation produces operating cash flow of $706.05M, showing steady but balanced cash generation.
Free Cash Flow
Pool Corporation generates strong free cash flow of $606.45M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16.64 in free cash annually.
FCF Yield
POOL converts 8.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
9.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How POOL Stacks Against Its Sector Peers
| Metric | POOL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.94 | 30.72 | Better (Cheaper) |
| ROE | 32.50% | 1100.00% | Weak |
| Net Margin | 7.58% | -20665.00% (disorted) | Weak |
| Debt/Equity | 1.40 | 0.48 | Weak (High Leverage) |
| Current Ratio | 1.87 | 21.37 | Neutral |
| ROA | 10.15% | -1299414.00% (disorted) | Strong |
POOL outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pool Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure