Hayward Holdings (HAYW) AI Stock Analysis

• Market Cap: $2.68B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.89
• Revenue Growth: 5.96%
• EPS Growth: 45.69%
• Country: US
• Employees: 1,934
• Sector: Industrials
• Sector Strength: 61
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.54
• Shares Outstanding: 216,189,710
• 10 Day Avg. Volume: 2,966,366
• 30 Day Avg. Volume: 2,290,699
• PEG Ratio: 0.49
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.87
• Price to Cash Flow (P/CF): -11.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.88
• Price Target Upside: 33.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Hayward Holdings demonstrates stable financial fundamentals and strong cash flow, though profitability margins need improvement. The technical indicators suggest a neutral outlook, while the stock's valuation appears relatively high. Recent earnings call provided a positive outlook with some caution due to international challenges. Overall, the stock presents moderate growth prospects with notable potential risks.

Positive Factors

Aftermarket Resilience

Confidence remains in the resiliency of the aftermarket, which accounts for more than 50% of revenues.

Financial Performance

3Q24 adjusted EBITDA was above consensus expectations, indicating stronger than anticipated performance.

Product Innovation

Hayward has shown strong innovation with products such as the microchannel heat pump and its introduction of OmniX products, which we expect to drive share in coming years.

Negative Factors

Consumer Spending Risks

Increasing risks to US consumer spending and the deterioration in housing fundamentals push out expectations for a recovery in the pool market.

Consumer-Led Recession

The risks of a consumer-led recession have risen meaningfully.

Discretionary Spending

More discretionary remodel and upgrade revenue streams likely remain under pressure as consumers push larger spend items to the right.

Hayward Holdings Business Overview & Revenue Model

Company Description

Hayward Holdings, Inc. is a leading global designer, manufacturer, and marketer of a broad portfolio of pool equipment and associated products. The company's offerings encompass a wide array of technologically advanced equipment and systems, including pumps, filters, heaters, automatic cleaners, sanitizers, and pool lighting solutions. Hayward primarily serves residential, commercial, and industrial sectors, providing innovative and energy-efficient solutions that enhance the safety, comfort, and enjoyment of pool environments.

How the Company Makes Money

Hayward Holdings generates revenue through the sale of its diverse range of pool equipment and supplies. The company's key revenue streams include direct sales to distributors, retailers, and buying groups, as well as e-commerce platforms that facilitate the purchase of its products. Hayward also benefits from its extensive network of partnerships with pool builders and service professionals, which enhances product accessibility and brand visibility. Additionally, advancements in smart technology and energy-efficient solutions contribute to increased demand, driving further revenue growth. The company's focus on innovation and robust distribution channels significantly supports its earnings potential.

Hayward Holdings Financial Statement Overview

Summary

Overall, Hayward Holdings presents a stable financial position with consistent revenue growth and effective cash management. While profitability margins have shown some decline, the company's leverage and cash flow metrics are strong, suggesting a solid foundation for future growth. Attention to improving net profit margins and maintaining operational efficiency will be key to sustaining long-term performance.

Income Statement

Hayward Holdings shows a steady revenue growth rate with a notable increase from 2023 to 2024. The gross profit margin is strong, reflecting efficient production and pricing strategies. However, the net profit margin and EBIT margins have decreased from previous years, indicating increased costs or reduced pricing power.

Balance Sheet

The company maintains a healthy debt-to-equity ratio, which has improved slightly over the years, reflecting better leverage management. The return on equity is moderate, suggesting effective use of shareholder capital, though there is room for improvement. The equity ratio shows a balanced asset structure with a stable portion financed by equity.

Cash Flow

Hayward Holdings demonstrates positive free cash flow growth, indicating strong cash generation capacity. The operating cash flow to net income ratio is robust, reflecting efficient cash conversion. However, the free cash flow to net income ratio suggests that some cash might be tied up in operations or reinvested, which could be a strategic decision for growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.05B	992.45M	1.31B	1.40B	875.40M
	Gross Profit
530.76M	476.95M	597.03M	655.78M	397.00M
	EBIT
208.79M	175.22M	285.57M	317.97M	124.60M
	EBITDA
208.79M	227.75M	356.87M	390.82M	188.10M
	Net Income Common Stockholders
118.66M	80.69M	179.35M	203.72M	43.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
196.59M	203.10M	56.18M	265.80M	114.90M
	Total Assets
2.99B	2.95B	2.88B	2.98B	2.61B
	Total Debt
964.55M	1.16B	1.10B	985.28M	1.30B
	Net Debt
767.96M	985.03M	1.04B	719.48M	1.19B
	Total Liabilities
1.57B	1.63B	1.65B	1.61B	2.40B
	Stockholders Equity
1.42B	1.31B	1.22B	1.37B	209.20M
Cash Flow		Free Cash Flow
187.78M	153.55M	86.32M	160.37M	198.20M
	Operating Cash Flow
212.07M	184.54M	115.94M	187.51M	213.80M
	Investing Cash Flow
-54.13M	-55.38M	-92.57M	-48.78M	-13.00M
	Financing Cash Flow
-136.79M	-7.61M	-229.24M	10.96M	-135.10M

Hayward Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAYW, the sentiment is Negative. The current price of 11.94 is below the 20-day moving average (MA) of 13.56, below the 50-day MA of 14.11, and below the 200-day MA of 14.55, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 22.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HAYW.

Hayward Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	72 Outperform	$3.39B	10.64	18.36%	1.10%	-2.94%	22.32%
POWL	70 Outperform	$2.21B	13.91	37.22%	0.58%	38.27%	105.52%
AEIS	66 Neutral	$3.61B	66.73	4.80%	0.50%	-10.49%	-57.78%
HAYW	65 Neutral	$2.68B	22.29	8.68%	―	5.96%	45.69%
ENR	62 Neutral	$1.96B	34.22	37.60%	4.42%	-0.31%	-37.69%
ATKR	62 Neutral	$2.05B	5.76	25.00%	2.15%	-12.01%	-38.33%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.62%	-14.40%

Hayward Holdings Corporate Events

Hayward Holdings Expands Board with New Appointment

On March 20, 2025, Hayward Holdings expanded its Board of Directors from nine to ten members, appointing Ron Keating as an independent director. Keating, who brings extensive experience in the water industry and global business environments, will serve on the Compensation Committee. His appointment is expected to enhance Hayward’s strategic growth and shareholder value, leveraging his expertise from previous leadership roles at Excelitas Technologies and Evoqua Water Technologies.