Pool (POOL) AI Stock Analysis

• Market Cap: $10.33B
• Dividend Yield: 1.77%
• Average Volume (3M): 606.13K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.76
• Revenue Growth: -0.60%
• EPS Growth: -5.99%
• Country: US
• Employees: 6,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 3.39
• Shares Outstanding: 37,249,485
• 10 Day Avg. Volume: 746,410
• 30 Day Avg. Volume: 606,135
• PEG Ratio: -1.93
• Price to Book (P/B): 10.18
• Price to Sales (P/S): 2.44
• P/FCF Ratio: 21.61
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 8.17
• Enterprise Value/Ebitda: 20.08
• 1Y Price Target: $326.00
• Price Target Upside: 17.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $319.00 ▲(15.08% Upside)

Pool's overall stock score is driven by strong revenue growth and improved leverage, balanced by challenges in profitability and cash flow. Technical indicators suggest bearish momentum, while valuation metrics indicate moderate attractiveness. The earnings call highlighted steady growth and technological advancements but also noted challenges in key markets and macroeconomic pressures.

Positive Factors

Revenue Growth

Steady revenue growth and margin expansion indicate strong market demand and effective cost management, supporting long-term financial health.

Technological Advancements

Increased adoption of POOL360 shows successful tech investments, enhancing customer experience and operational efficiency, driving future growth.

Strategic Expansion

Strategic acquisitions and expansion efforts strengthen market presence and distribution capabilities, supporting long-term growth objectives.

Negative Factors

Profitability Challenges

Declining profit margins suggest pressure on profitability, which could impact the company's ability to reinvest in growth and maintain competitive advantage.

Cash Flow Concerns

Negative free cash flow growth indicates potential cash generation issues, which could limit the company's ability to fund operations and strategic initiatives.

Market Challenges

Sales declines in key markets like California and Arizona highlight regional challenges that could hinder overall growth and market penetration efforts.

Pool Business Overview & Revenue Model

Company Description

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; pool equipment and components for new pool construction and the remodeling of existing pools; and irrigation and related products consisting of irrigation system components, and professional lawn care equipment and supplies. It also provides building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling; and commercial products, including heaters, safety equipment, and commercial pumps and filters. In addition, the company offers other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial customers that serve hotels, universities, and community recreational facilities. As of March 03, 2022, the company operated 410 sales centers in North America, Europe, and Australia. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.

How the Company Makes Money

Pool generates revenue through several key streams, primarily through the sale of pool construction and renovation services, which account for a significant portion of its earnings. The company also profits from ongoing maintenance contracts and the retail sale of pool supplies such as chemicals, cleaning equipment, and accessories. Additionally, Pool has established strategic partnerships with manufacturers and suppliers, enabling it to offer a wide range of products at competitive prices. These partnerships often lead to favorable terms and increased sales volume. The company may also benefit from seasonal demand fluctuations, particularly during peak swimming months, contributing to its overall revenue growth.

Pool Financial Statement Overview

Summary

Pool demonstrates strong revenue growth and improved leverage, but faces challenges in profitability and cash flow generation. The company has made strides in reducing debt, enhancing its financial stability. However, declining profit margins and cash flow growth could pose risks if not addressed.

Income Statement

Pool's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 34.6%, indicating strong top-line growth. However, the net profit margin has decreased from 12.1% in 2022 to 7.8% in the TTM, suggesting pressure on profitability. The gross profit margin remains stable around 29.6%, but EBIT and EBITDA margins have declined, reflecting potential operational challenges.

Balance Sheet

The balance sheet reflects a significant improvement in leverage, with the debt-to-equity ratio decreasing from 1.34 in 2022 to 0.25 in the TTM. This indicates a stronger equity position. However, the return on equity has decreased from 60.6% in 2022 to 31.8% in the TTM, which may point to less efficient use of equity. The equity ratio has improved, suggesting a more stable financial structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which is negative in the TTM, indicating potential cash generation issues. The operating cash flow to net income ratio is 0.63, showing moderate cash conversion efficiency. The free cash flow to net income ratio remains strong at 0.86, suggesting that the company still generates healthy cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.29B	5.31B	5.54B	6.18B	5.30B	3.94B
Gross Profit	1.57B	1.58B	1.66B	1.93B	1.62B	1.13B
EBITDA	637.51M	662.68M	786.71M	1.06B	862.81M	493.43M
Net Income	412.12M	434.32M	523.23M	748.46M	650.62M	366.74M
Balance Sheet
Total Assets	3.50B	3.37B	3.43B	3.57B	3.23B	1.74B
Cash, Cash Equivalents and Short-Term Investments	128.48M	77.86M	66.54M	45.59M	24.32M	34.13M
Total Debt	1.39B	1.27B	1.36B	1.66B	1.43B	623.84M
Total Liabilities	2.12B	2.09B	2.12B	2.33B	2.16B	1.10B
Stockholders Equity	1.38B	1.27B	1.31B	1.24B	1.07B	639.47M
Cash Flow
Free Cash Flow	394.66M	599.71M	828.13M	441.24M	275.83M	375.88M
Operating Cash Flow	456.31M	659.19M	888.23M	484.85M	313.49M	397.58M
Investing Cash Flow	-72.47M	-66.17M	-71.60M	-50.87M	-849.61M	-146.29M
Financing Cash Flow	-347.14M	-576.55M	-798.13M	-411.66M	526.13M	-244.37M

Pool Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 277.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POOL, the sentiment is Negative. The current price of 277.2 is below the 20-day moving average (MA) of 294.67, below the 50-day MA of 308.14, and below the 200-day MA of 313.47, indicating a bearish trend. The MACD of -6.37 indicates Positive momentum. The RSI at 30.73 is Neutral, neither overbought nor oversold. The STOCH value of 2.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POOL.

Pool Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCC	―	$12.28B	17.87	13.78%	0.70%	1.30%	-1.09%
AIT	―	$9.58B	24.82	22.10%	0.68%	4.03%	5.93%
WSO	―	$14.94B	27.44	17.61%	3.26%	-0.71%	―
SITE	―	$5.78B	42.01	8.37%	―	4.00%	-0.75%
CNM	―	$10.28B	23.29	24.42%	―	11.02%	7.08%
POOL	―	$10.33B	25.88	29.16%	1.77%	-0.60%	-5.99%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Pool Corporate Events

Pool Corporation’s Earnings Call: Growth Amid Challenges

The recent earnings call for Pool Corporation presented a balanced outlook, highlighting steady revenue growth and technological advancements in their POOL360 platform. Despite these positive aspects, challenges in key markets, particularly California and Arizona, alongside declines in chemical sales and macroeconomic pressures, tempered the overall sentiment.

Pool Corporation Reports Steady Growth in Q3 2025

Pool Corporation, the world’s largest wholesale distributor of swimming pool and related backyard products, operates 454 sales centers across North America, Europe, and Australia, serving approximately 125,000 wholesale customers with over 200,000 products.

Pool Corporation Reports Q3 2025 Financial Results

Pool Corporation reported a 1% increase in net sales to $1.5 billion for the third quarter of 2025, compared to the same period in 2024, with a gross margin expansion of 50 basis points to 29.6%. Despite a 5% rise in operating expenses due to network expansion and inflation, the company maintained an operating margin of 12.3% and saw a 4% increase in diluted EPS to $3.40. The company confirmed its annual earnings guidance and highlighted its strategic growth through new locations and enhanced customer offerings, marking its 30th anniversary as a public company.

The most recent analyst rating on (POOL) stock is a Sell with a $285.00 price target. To see the full list of analyst forecasts on Pool stock, see the POOL Stock Forecast page.

Pool Corporation Declares Quarterly Dividend Announcement

On July 30, 2025, Pool Corporation announced that its Board of Directors declared a quarterly cash dividend of $1.25 per share, payable on August 28, 2025, to shareholders of record on August 14, 2025. This announcement underscores Pool Corporation’s commitment to returning value to its shareholders and may influence its market positioning as a leading distributor in the swimming pool industry.

The most recent analyst rating on (POOL) stock is a Hold with a $360.00 price target. To see the full list of analyst forecasts on Pool stock, see the POOL Stock Forecast page.