Pool Corp. (POOL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fastenal Co.

Applied Industrial Technologies, Inc.

W.W. Grainger, Inc.

WESCO International, Inc.

Core & Main, Inc.

UGI Corp.

Pool Corp.

MSC Industrial Direct Co., Inc.

Ferguson Plc

Genuine Parts Co.

Beacon Roofing Supply, Inc.

Why is Pool Corp. ?

High Management Efficiency with a high ROCE of 34.96%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.07 times

Positive results in Mar 26

DIVIDEND PAYOUT RATIO(Y) Highest at 86.06%
DIVIDEND PER SHARE(HY) Highest at USD 10.14
RAW MATERIAL COST(Y) Fallen by 0.57% (YoY)

With ROCE of 24.33%, it has a fair valuation with a 3.57 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -28.09%, its profits have fallen by -6.4%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -28.09% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Pool Corp. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Pool Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Pool Corp.

-28.09%

-0.94

40.79%

S&P 500

19.75%

1.50

13.19%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.09%

EBIT Growth (5y)

4.26%

EBIT to Interest (avg)

36.25

Debt to EBITDA (avg)

1.37

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

2.17

Tax Ratio

24.02%

Dividend Payout Ratio

45.64%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

34.96%

ROE (avg)

50.17%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.17

EV to EBIT

14.67

EV to EBITDA

13.47

EV to Capital Employed

3.57

EV to Sales

1.61

PEG Ratio

Dividend Yield

2.58%

ROCE (Latest)

24.33%

ROE (Latest)

34.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

6What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 86.06%

DIVIDEND PER SHARE(HY)

Highest at USD 10.14

RAW MATERIAL COST(Y)

Fallen by 0.57% (YoY

CASH AND EQV(HY)

Highest at USD 169.42 MM

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 364.37 MM

DEBT-EQUITY RATIO (HY)

Highest at 134.74 %

INTEREST(Q)

Highest at USD 12.37 MM

Here's what is working for Pool Corp.

Dividend per share

Highest at USD 10.14 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 86.06% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Cash and Eqv

Highest at USD 169.42 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.57% (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

Here's what is not working for Pool Corp.

Operating Cash Flow

Lowest at USD 364.37 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 12.37 MM

in the last five periods and Increased by 8.64% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 134.74 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio