Last Updated: 16 Sep 2024
Executive Summary
Latham Group Inc. (SWIM) is a leading designer, manufacturer, and marketer of residential inground swimming pools. The company has a strong financial position with a market capitalization of $722.36 million and an EBITDA of $69.43 million. Latham Group's stock price is currently trading at $6.25, which is below its 52-week high of $6.67. The company's fundamentals are solid, with a profit margin of 2.24%, an operating margin of 12.5%, and a return on assets of 1.98%. Latham Group also has a strong balance sheet with a book value of $3.531 per share.
Company Overview
Latham Group was founded in 1955 and is headquartered in Latham, New York. The company designs, manufactures, and markets a wide range of inground swimming pools, including fiberglass, vinyl-lined, and concrete pools. Latham Group also offers a variety of pool accessories and equipment, such as pool covers, liners, and pumps. The company's products are sold through a network of over 1,000 dealers in the United States and Canada.
Fundamental Analysis
Latham Group's financial performance has been strong in recent years. The company's revenue has grown from $472.5 million in 2021 to $522.4 million in 2023. Latham Group's net income has also increased from $10.5 million in 2021 to $11.7 million in 2023. The company's earnings per share (EPS) has also increased from $0.09 in 2021 to $0.11 in 2023.
Latham Group's balance sheet is also strong. The company has a total debt of $102.3 million and a total equity of $361.1 million. Latham Group's debt-to-equity ratio is 0.28, which is a manageable level. The company also has a strong cash position with $47.5 million in cash and cash equivalents.
Technical Analysis
Latham Group's stock price has been trading in a range between $2.035 and $6.67 over the past 52 weeks. The stock price is currently trading below its 50-day moving average of $4.615 and its 200-day moving average of $3.462. The stock's relative strength index (RSI) is 45.5, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
Latham Group's stock price is expected to remain range-bound in the short term. The stock's technical indicators are neutral, and the company's fundamentals are solid. However, the stock market is currently volatile, and there is no guarantee that Latham Group's stock price will not decline further.
Long Term Outlook
Latham Group's long-term outlook is positive. The company is a leader in the inground swimming pool market, and the demand for swimming pools is expected to grow in the coming years. Latham Group is also well-positioned to benefit from the growing trend of staycations.
Analyst Recommendations
Analysts are divided on Latham Group's stock. Four analysts have a strong buy rating on the stock, one analyst has a buy rating, one analyst has a hold rating, and two analysts have a sell rating. The average analyst target price for Latham Group is $5.33.
