One-glance verdict
Within fair range
$239.09 our estimate vs market $199.08
Wall Street consensus: $209.33 (-12.4% lower than our fair-value estimate)
17% below our estimate
Fundamentals snapshot
Pool Corporation
POOL · NMS · Industrials · Industrial Distribution
Current price
$199.08
52-week range
$152.70 - $297.50
Market cap
$7.23B
Balance sheet
Stretched
12.41x Strong cushion
Net debt $1.41B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.3% last year.
- Reward Returns 30.4% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 16.6% to 11.4% over 3 years.
What this company does
Pool Corporation
Pool Corporation is like a giant wholesale club for everything you need to build, maintain, and enjoy a swimming pool. They sell everything from the chemicals that keep your water clean to the fancy tiles for the pool's edge, and even hot tubs. Most of their money comes from selling these products to pool builders and repair companies who then sell them to homeowners, which is important because it shows they are a key link in getting pools from an idea to a reality.
How the company got here
Pool Corporation was founded in 1993 and has since grown to become a major player in the pool and outdoor living industry. The company's strategy has focused on consolidating a fragmented market through acquisitions and building a robust distribution network. This approach has allowed Pool Corporation to establish itself as a go-to supplier for professionals in the pool construction, remodeling, and maintenance sectors. Its growth has been driven by both organic expansion and strategic purchases of smaller distributors, solidifying its market position over the years.
What it actually does
Pool Corporation is essentially a wholesale distributor, meaning it buys products in large quantities from manufacturers and then sells them to other businesses that then sell to consumers or use them in their services. Think of it like a giant warehouse that supplies everything needed to build, maintain, and enhance swimming pools and outdoor living spaces. They don't typically sell directly to homeowners but rather to the contractors and pool service companies that homeowners hire.
Building Products and Pool Supplies
This segment is the backbone of Pool Corporation's business, focusing on the essential components for creating and maintaining swimming pools. It includes everything from the pipes and pumps that circulate water to the chemicals that keep it clean and safe. They also supply decorative elements like tiles and specialized surfaces for the pool itself, as well as materials for the surrounding deck areas. This is where Pool Corp makes a significant portion of its revenue by ensuring builders and remodelers have access to all the necessary materials for new pool installations and upgrades.
Pool Equipment
This part of the business concentrates on the mechanical and functional parts of a swimming pool. It covers a wide range of equipment such as heaters to keep the water warm, filters to remove debris, pumps to circulate the water, and lighting to enhance the pool's ambiance. Pool Corporation supplies these critical components to pool builders and service companies, ensuring that pools are not only aesthetically pleasing but also fully operational and enjoyable year-round. This segment is vital for both new pool construction and the repair or modernization of existing pools.
Irrigation and Landscape Maintenance
Beyond pools, Pool Corporation also distributes products for maintaining outdoor spaces, specifically focusing on irrigation and landscaping. This includes parts for sprinkler systems that water lawns and gardens, as well as equipment and supplies used by professional turf care companies. This diversification allows the company to serve a broader range of contractors and businesses involved in outdoor property management, leveraging its distribution expertise into related markets. While not as large as its pool-focused segments, this area represents a complementary revenue stream.
What management is betting on now
Pool Corporation's management is focused on continuing its growth through strategic acquisitions and expanding its product offerings in the outdoor living space. They aim to strengthen their position as the leading distributor by integrating new businesses and enhancing their existing distribution network's efficiency. A key priority is also to capitalize on trends like home renovation and increased spending on backyard amenities, which benefits their core business. By staying attuned to customer needs and market opportunities, they plan to drive future profitability and market share gains.
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
$8.77M
FY2024 Q3
$305.49M
FY2024 Q4
$157.04M
FY2025 Q1
$13.93M
FY2025 Q2
$-42.86M
FY2025 Q3
$266.55M
FY2025 Q4
$71.90M
FY2026 Q1
$17.15M
Revenue
$1.14B
Net income
$53.23M
Diluted EPS
1.45
Operating cash flow
$25.74M
Free cash flow
$17.15M
Fetching…
Sources
Revenue
$982.21M
Net income
$31.59M
Diluted EPS
0.86
Operating cash flow
$80.11M
Free cash flow
$71.90M
Fetching…
Sources
Revenue
$1.45B
Net income
$127.01M
Diluted EPS
3.40
Operating cash flow
$287.29M
Free cash flow
$266.55M
Fetching…
Sources
Revenue
$1.78B
Net income
$194.26M
Diluted EPS
5.17
Operating cash flow
$-28.77M
Free cash flow
$-42.86M
Fetching…
Sources
Revenue
$1.07B
Net income
$53.55M
Diluted EPS
1.42
Operating cash flow
$27.22M
Free cash flow
$13.93M
Fetching…
Sources
Revenue
$987.48M
Net income
$37.30M
Diluted EPS
1.00
Operating cash flow
$170.57M
Free cash flow
$157.04M
Fetching…
Sources
Revenue
$1.43B
Net income
$125.70M
Diluted EPS
3.27
Operating cash flow
$316.52M
Free cash flow
$305.49M
Fetching…
Sources
Revenue
$1.77B
Net income
$192.44M
Diluted EPS
4.99
Operating cash flow
$26.66M
Free cash flow
$8.77M
Fetching…
Sources
Is it cheap or expensive?
Fair value $239.09 vs current price $199.08
Wall Street consensus is the average analyst price target: $209.33 (-12.4% lower than our fair-value estimate).
Our most-likely fair value is $239.09 a share — about 20.1% away from today's price of $199.08, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $1.4B. Interest coverage 12.4x.
Net debt
$1.41B
Interest coverage
12.41x
Pool Corporation's profit covers its interest bill about 12.4 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
POOL
BASELINE
Pool Corporation
Total debt $1.52B Interest coverage 12.41x This is the baseline the peer rows are being compared against.
Total debt $1.13B Interest coverage 6.80x -45% vs POOL Carries about 1.8x less debt cushion than POOL.
Total debt $535.27M Interest coverage 140.77x +1,035% vs POOL Carries about 11.3x more debt cushion than POOL.
Total debt $2.75B Interest coverage 6.02x -51% vs POOL Carries about 2.1x less debt cushion than POOL.
Total debt $451.70M Interest coverage 267.05x +2,053% vs POOL Carries about 21.5x more debt cushion than POOL.
Total debt $2.80B Interest coverage 30.80x +148% vs POOL Carries about 2.5x more debt cushion than POOL.
What you should know
The case for and against POOL
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.3% last year.
-
Returns 30.4% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Operating margin compressed from 16.6% to 11.4% over 3 years.
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)
18.26x
Forward P/E
17.26x
P/B
5.82x
P/S
1.33x
EV/EBITDA
13.42x
PEG ratio
1.60x
Profitability
How much profit each dollar creates
Gross margin
29.4%
Operating margin
11.4%
Net margin
7.3%
ROE
30.4%
ROA
10.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.24x
Current ratio
2.46x
Quick ratio
0.79x
Total debt
$1.52B
Total cash
$105.66M
Growth
How the business has been compounding
Revenue TTM
$5.36B
Revenue 5Y CAGR
-0.0%
EPS TTM
10.90
EPS 5Y CAGR
-16.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$364.37M
Free CF TTM
$309.52M
FCF margin
5.8%
Dividend
Shareholder payout
Yield
2.6%
Payout ratio
46.4%
Last ex-div date
2026-08-13