One-glance verdict
Undervalued
$17.23 our estimate vs market $12.63
Wall Street consensus: $17.93 (4.1% higher than our fair-value estimate)
27% below our estimate, below the bear case
Fundamentals snapshot
Hayward Holdings, Inc.
HAYW · NYQ · Industrials · Electrical Equipment & Parts
Current price
$12.63
52-week range
$12.41 - $17.73
Market cap
$2.68B
Balance sheet
Stretched
3.97x Stretched
Net debt $526.09M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
0 Risks
2 rewards · 0 risks
View details ↓What this company does
Hayward Holdings, Inc.
Hayward Holdings is a major company in the swimming pool industry, selling essential equipment like pumps, filters, robotic cleaners, and heaters. It earns money from both new pool construction and from the large base of existing pool owners who need to repair or upgrade, creating a steady aftermarket business (sales from replacement parts and services after the initial purchase). This aftermarket demand is important because it can provide a more predictable source of income, even when the construction of new pools slows down.
How the company got here
Founded in 1925, Hayward started as a company making specialty metal items and only later moved into the swimming pool business. A key turning point was its focus on creating a wide range of pool equipment, from pumps and filters to heaters and lights. This strategy allowed them to become a one-stop shop for the gear needed to build and maintain a pool. The company has grown by developing new products and went public, listing its shares on the New York Stock Exchange in March 2021, to further expand its business.
What it actually does
Hayward manufactures and sells the equipment that keeps swimming pools and spas running. Think of them as the company that makes the 'engine' and 'life support' for a pool. Their products include pumps that circulate water, filters that clean it, heaters that warm it, and automated systems that control everything. They sell these items to distributors and pool builders, who then sell them to homeowners and operators of commercial pools, like those at hotels or gyms. A large part of their business comes from replacing and upgrading equipment on existing pools, which provides a steady stream of sales.
North America
This is Hayward's largest business segment, covering the United States and Canada. It sells the company's full range of residential and commercial pool equipment, from basic pumps to advanced, automated systems that you can control from your phone. This segment makes up the vast majority of the company's sales because North America has a huge number of existing swimming pools that need regular maintenance and equipment replacement. This part of the business also includes the sale of products for controlling the flow of water in industrial settings.
Europe & Rest of World
This segment handles the manufacturing and sale of pool equipment to all other regions outside of North America, including Europe, Latin America, the Middle East, and Australia. It sells the same types of residential and commercial pool products as the North American business. While smaller than the North American segment, it represents a key area for growth as pool ownership becomes more popular in other parts of the world. The business here operates in a similar way, selling to distributors and professionals who serve local pool owners.
What management is betting on now
Hayward's leadership is focused on developing 'smart' and energy-efficient pool technology. They are creating more products that can be controlled through apps, making pool ownership easier for homeowners. The company is also emphasizing environmentally friendly products, like variable-speed pumps and LED lights, which save energy and reduce operating costs for pool owners. A major part of their strategy relies on the aftermarket (the market for replacement parts and upgrades), as the large number of existing pools provides a consistent demand for their products.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$282.27M
FY2024 Q3
$59.08M
FY2024 Q4
$-70.43M
FY2025 Q1
$-11.37M
FY2025 Q2
$187.31M
FY2025 Q3
$87.22M
FY2025 Q4
$-35.84M
FY2026 Q1
$-157.77M
Revenue
$255.22M
Net income
$23.36M
Diluted EPS
0.11
Operating cash flow
$-150.64M
Free cash flow
$-157.77M
Fetching…
Sources
Revenue
$349.38M
Net income
$68.41M
Diluted EPS
0.31
Operating cash flow
$-26.94M
Free cash flow
$-35.84M
Fetching…
Sources
Revenue
$244.34M
Net income
$24.03M
Diluted EPS
0.11
Operating cash flow
$94.61M
Free cash flow
$87.22M
Fetching…
Sources
Revenue
$299.60M
Net income
$44.80M
Diluted EPS
0.20
Operating cash flow
$194.21M
Free cash flow
$187.31M
Fetching…
Sources
Revenue
$228.84M
Net income
$14.33M
Diluted EPS
0.06
Operating cash flow
$-5.85M
Free cash flow
$-11.37M
Fetching…
Sources
Revenue
$327.07M
Net income
$54.73M
Diluted EPS
0.26
Operating cash flow
$-63.69M
Free cash flow
$-70.43M
Fetching…
Sources
Revenue
$227.57M
Net income
$16.50M
Diluted EPS
0.07
Operating cash flow
$65.92M
Free cash flow
$59.08M
Fetching…
Sources
Revenue
$284.39M
Net income
$37.58M
Diluted EPS
0.17
Operating cash flow
$287.04M
Free cash flow
$282.27M
Fetching…
Sources
Is it cheap or expensive?
Fair value $17.23 vs current price $12.63
Wall Street consensus is the average analyst price target: $17.93 (4.1% higher than our fair-value estimate).
Our most-likely fair value is $17.23 a share — about 36.4% above today's price of $12.63, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $526.1M. Interest coverage 4.0x.
Net debt
$526.09M
Interest coverage
3.97x
Hayward Holdings, Inc.'s profit covers its interest bill about 4.0 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
HAYW
BASELINE
Hayward Holdings, Inc.
Total debt $1.01B Interest coverage 3.97x This is the baseline the peer rows are being compared against.
Total debt $1.76B Interest coverage 13.41x +238% vs HAYW Carries about 3.4x more debt cushion than HAYW.
Total debt $1.70B Interest coverage 12.41x +212% vs HAYW Carries about 3.1x more debt cushion than HAYW.
Total debt $211.80M Interest coverage 43.69x +1,000% vs HAYW Carries about 11.0x more debt cushion than HAYW.
Total debt $23.48M Interest coverage 35.80x +801% vs HAYW Carries about 9.0x more debt cushion than HAYW.
Total debt $677.20M Interest coverage 53.93x +1,257% vs HAYW Carries about 13.6x more debt cushion than HAYW.
What you should know
The case for and against HAYW
2 Rewards
0 Risks
Rewards
-
Revenue grew 2.4% last year.
-
Free cash flow was positive in 7/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.54x
Forward P/E
13.02x
P/B
1.69x
P/S
2.30x
EV/EBITDA
10.50x
PEG ratio
1.09x
Profitability
How much profit each dollar creates
Gross margin
48.0%
Operating margin
24.1%
Net margin
13.8%
ROE
10.4%
ROA
5.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.63x
Current ratio
3.33x
Quick ratio
2.30x
Total debt
$1.01B
Total cash
$487.28M
Growth
How the business has been compounding
Revenue TTM
$1.15B
Revenue 5Y CAGR
-5.4%
EPS TTM
0.72
EPS 5Y CAGR
-4.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$111.25M
Free CF TTM
$227.32M
FCF margin
19.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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