Pool Corporation
$182.53
+2.4%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 16.8).
Valuation inputs: P/E 16.8, earnings yield +6.0%, momentum +2.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +34.3%, ROIC +15.4%).
Profitability stack: net margin +7.7%, ROE +34.3%, ROIC +15.4%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +67.3%, momentum +2.4%, net margin +7.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Pool Corporation Market vs Earnings Trajectory
Loading price and EPS data...
Pool Corporation Fair Value Envelope
Pool Corporation Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Pool Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Pool Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Pool Corporation Street Expectations Map
Wall Street analysts project that POOL stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 275.00, with estimates ranging from a low of 210.00 to a high of 310.00.
The consensus 1-year price target stands at 275.00, with estimates ranging from a low of 210.00 to a high of 310.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Pool Corporation Insider Positioning
During the last 12 months, insiders have purchased $6.67M and sold $1.31M worth of POOL shares, resulting in $5.36M of net buying activity.
3 Months
27.0K
5.07M
508
103.43K
+5.0M
+$4.96M
3-6 Months
7.4K
1.61M
2.8K
605.00K
+1.0M
+$1.00M
6-9 Months
0
0.00
2.5K
600.37K
-600K
-$600K
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Perez De La Mesa Manuel J
Director
$5.77M
Hope James D
Director
$390K
St Romain Kenneth G
Officer: Senior Vice President
$215K
Stokely John E
Director
$193K
Whalen David G
Director
$100K
Top Sellers
Hart Melanie M
Officer: Senior Vp Cfo And Treasurer
$605K
Arvan Peter D
Officer: President/Ceo
$600K
Neil Jennifer M
Officer: Sr Vp, Sec & Chief Legal Off
$103K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $5.36M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
5 insider buyers vs. 3 sellers. More insiders buying than selling indicates positive sentiment.
Insider Activity Insight
Strong confluence of bullish signals: High buy/sell ratio, multiple insiders participating, and recent buying momentum all point to significant insider confidence. This level of coordinated buying often precedes positive developments.
pool Dividend History
Learning Layer
Related Guides
Build conviction on POOL by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.