Last Updated: 11 Nov 2024
Executive Summary
Pool Corporation (POOL) is a leading distributor of swimming pool supplies, equipment, and outdoor products. The company has a strong market position, with a wide distribution network and a loyal customer base. POOL's financial performance has been solid in recent years, with revenue and earnings growing steadily. The company is also generating strong cash flow, which it is using to invest in growth initiatives.
Company Overview
Pool Corporation was founded in 1972 and is headquartered in Covington, Louisiana. The company has over 300 distribution centers in the United States, Canada, and Europe. POOL sells a wide range of products, including swimming pools, hot tubs, pool chemicals, and outdoor furniture. The company's customers include pool builders, retailers, and homeowners.
Fundamental Analysis
POOL's financial performance has been solid in recent years. Revenue has grown from $3.9 billion in 2017 to $5.3 billion in 2023. Earnings per share have also grown, from $7.62 in 2017 to $11.66 in 2023. The company is also generating strong cash flow, with operating cash flow of $577 million in 2023.
POOL's financial ratios are also healthy. The company has a strong balance sheet, with a debt-to-equity ratio of 0.5. The company is also generating a solid return on equity, of 31.5%.
Technical Analysis
POOL's stock price has been trading in a range between $370 and $420 for the past year. The stock is currently trading at $374.99, which is near the bottom of its range. The stock's technical indicators are also mixed. The relative strength index (RSI) is below 50, which indicates that the stock is oversold. However, the moving average convergence divergence (MACD) is above zero, which indicates that the stock is in a bullish trend.
Short Term Outlook
The short-term outlook for POOL is mixed. The stock is currently trading near the bottom of its range, which could indicate that it is due for a rebound. However, the stock's technical indicators are also mixed, which makes it difficult to predict its future direction.
Long Term Outlook
The long-term outlook for POOL is positive. The company has a strong market position, a wide distribution network, and a loyal customer base. The company is also generating strong cash flow, which it is using to invest in growth initiatives. These factors should support continued growth in the years to come.
Analyst Recommendations
Analysts are generally positive on POOL. The consensus recommendation is a "buy," with a target price of $381.98. Three analysts have a "strong buy" rating on the stock, two have a "buy" rating, six have a "hold" rating, and two have a "sell" rating.
