Pool Corp
POOL
Wholesale-Misc Durable Goods
Mkt Cap
$13.6BPE
25.15Debt
$1.034BCash
$85.22MEV
$14.55BFCF
$868.8MP/E Ratio
25.15Debt
$1.034BCash
$85.22MEV
$14.55BFCF
$868.8MPool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. It also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional lawn care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, the company offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.
Sector
DCF
Discounted Cash Flow Valuation of Pool Corp
Value
Growth
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Discount
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Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $868.8M | $1.068B | $1.292B | $1.538B | $1.799B | $2.068B | $2.337B | $2.594B | $2.827B | $3.025B | $3.176B | $31.76B |
| DCF | $929M | $977.2M | $1.011B | $1.028B | $1.028B | $1.01B | $975M | $924.1M | $859.8M | $785M | $7.85B | |
| Value | $17.38B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 27%
Earnings Stability 94%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 4.9% | 5.4% | 5.8% | 6.9% | 7.8% | 8.2% | 9.3% | 12% | 12% | 9.6% |
| ROA | 21% | 23% | 26% | 26% | 25% | 23% | 27% | 26% | 29% | 23% |
| ROE | 45% | 50% | 72% | 86% | 100% | 64% | 57% | 60% | 60% | 38% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +9.4%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +1.15%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +25.89%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.57%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +72.05%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -7.64%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 3.07 | 2.82 | 3.35 | 3.90 | 7.76 | 1.93 | 1.11 | 4.29 | 3.14 | 1.19 |
| Debt Equity | 1.31 | 1.29 | 2.14 | 2.38 | 3.02 | 1.25 | 0.65 | 1.10 | 1.12 | 0.73 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.19.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.43.
What is the Graham’s Stability?
Graham’s Stability measure stands at 1.00.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 15% | 17% | 25% | 17% | 2.5% |
| Net Income | 29% | 31% | 42% | 15% | 3.6% |
| Stockholders Equity | 25% | 41% | 44% | 15% | 8.9% |
| FCF | 21% | 27% | 18% | 60% | 5% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +17.25%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +2.49%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +31.22%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +3.64%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +40.81%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +8.9%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +26.55%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +5.01%.