Latham Group, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Daktronics, Inc.

LCI Industries

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Armstrong World Industries, Inc.

TriMas Corp.

Omega Flex, Inc.

Myers Industries, Inc.

Brady Corp.

Latham Group, Inc.

Berry Global Group, Inc.

Matthews International Corp.

Why is Latham Group, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -5.45% of over the last 5 years

Flat results in Jun 25

NET PROFIT(9M) At USD -18.69 MM has Grown at -390.92%
OPERATING CASH FLOW(Y) Lowest at USD 32.5 MM
INTEREST(Q) At USD 7.15 MM has Grown at 12.21%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 2.31%, its profits have fallen by -331.5%

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -3.13% over the previous quarter and currently hold 9.83% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Underperformed the market in the last 1 year

The stock has generated a return of 2.31% in the last 1 year, much lower than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Latham Group, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Latham Group, Inc.

5.14%

1.31

69.91%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.18%

EBIT Growth (5y)

-5.45%

EBIT to Interest (avg)

0.64

Debt to EBITDA (avg)

65.91

Net Debt to Equity (avg)

0.76

Sales to Capital Employed (avg)

0.79

Tax Ratio

39.39%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

59.70%

ROCE (avg)

4.32%

ROE (avg)

5.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.79

EV to EBIT

53.38

EV to EBITDA

15.05

EV to Capital Employed

1.45

EV to Sales

1.91

PEG Ratio

Dividend Yield

ROCE (Latest)

2.72%

ROE (Latest)

-3.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.73 times

RAW MATERIAL COST(Y)

Fallen by -13.24% (YoY

NET SALES(Q)

Highest at USD 172.64 MM

OPERATING PROFIT(Q)

Highest at USD 37.58 MM

OPERATING PROFIT MARGIN(Q)

Highest at 21.77 %

PRE-TAX PROFIT(Q)

Highest at USD 21.27 MM

NET PROFIT(Q)

Highest at USD 16.1 MM

EPS(Q)

Highest at USD 0.13

-10What is not working for the Company

NET PROFIT(9M)

At USD -18.69 MM has Grown at -390.92%

OPERATING CASH FLOW(Y)

Lowest at USD 32.5 MM

INTEREST(Q)

At USD 7.15 MM has Grown at 12.21%

Here's what is working for Latham Group, Inc.

Inventory Turnover Ratio

Highest at 4.73 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at USD 172.64 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 37.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 21.77 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 21.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 21.27 MM has Grown at 50.4%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 16.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -13.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 12.7 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Latham Group, Inc.

Interest

At USD 7.15 MM has Grown at 12.21%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 32.5 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)