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1. Company Snapshot

1.a. Company Description

Pool 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; fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; pool equipment and components for new pool construction and the remodeling of existing pools; and irrigation and related products consisting of irrigation system components, and professional lawn care equipment and supplies.It also provides 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; and commercial products, including heaters, safety equipment, and commercial pumps and filters.


In addition, the company offers 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 customers that serve hotels, universities, and community recreational facilities.As of March 03, 2022, the company operated 410 sales centers in North America, Europe, and Australia.


Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.

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1.b. Last Insights on POOL

Pool Corporation's recent performance was driven by resilient Q2 earnings, despite macroeconomic weakness. The company reported a return to positive revenue growth and earnings of $5.17 per share, beating estimates. A quarterly cash dividend of $1.25 per share was declared. Additionally, Berkshire Hathaway's recent investment in the company may boost investor confidence. However, the company revised its 2025 guidance downwards, citing macroeconomic challenges. (Source: 24/7 Wall St, Nasdaq)

1.c. Company Highlights

2. POOLCORP's Q3 2025 Earnings: Steady Performance Amidst Market Stabilization

POOLCORP reported $1.5 billion in net sales for Q3 2025, a 1% year-over-year increase driven by a 1% rise in maintenance product sales, growth in building materials, and a 3% benefit from pricing. Gross margin expanded by 50 basis points to 29.6%, fueled by favorable pricing, successful supply chain initiatives, and increased sales of private label offerings. The company achieved diluted EPS of $3.40, up 4% from Q3 2024, slightly above estimates of $3.38, with actual EPS coming in at $3.39.

Publication Date: Oct -27

📋 Highlights
  • Net Sales Growth:: Q3 2025 net sales reached $1.5 billion, a 1% year-over-year increase, driven by 1% maintenance product growth, building materials expansion, and 3% pricing benefits.
  • Gross Margin Expansion:: Margins rose 50 basis points to 29.6%, supported by pricing strategies, supply chain improvements, and higher private-label sales.
  • EPS Growth:: Diluted EPS climbed 4% to $3.40 year-over-year, reflecting operational efficiency and pricing gains.
  • Strategic Investments:: $286 million in year-to-date cash flow from operations enabled $164 million in share repurchases, with continued tech investments (e.g., POOL360, mobile app) to enhance customer experience and drive growth.
  • Full-Year Outlook:: EPS guidance of $10.81–$11.31 remains unchanged, with Q4 sales expected to rise slightly due to product mix benefits and favorable seasonal demand in northern markets.

Financial Performance and Guidance

For the full year, POOLCORP expects sales to be relatively flat to up slightly, and diluted EPS in the range of $10.81 to $11.31. The company generated $286 million in cash flow from operations year-to-date and completed $164 million of share repurchases through Q3. With a P/E Ratio of 26.57 and an ROE of 31.76%, the market appears to have priced in a certain level of growth and profitability.

Market Trends and Strategic Initiatives

POOLCORP saw early signs of stabilization in the market, with growth in building material sales in the quarter. The company accelerated investments in innovation, particularly in technology, to enhance the customer experience and provide more convenience. These investments include the POOL360 service, water test technology, and a mobile app for customers to test their pool water, expected to drive growth and help the company outgrow the market.

Operational Highlights and Customer Mix

The company's equipment sales grew 4%, driven by replacement business for failed components. The chemicals business saw slight pressure in sanitizers, but the rest of the business held up well. POOLCORP sees consolidation at the customer level, creating an opportunity to provide more tools and convenience to its customers, with its technology suite being flexible and allowing for integration with larger customers.

Outlook and Valuation

Analysts estimate next year's revenue growth at 3.5%. With a current P/S Ratio of 2.07 and an EV/EBITDA of 18.59, the valuation appears reasonable considering the company's growth prospects and profitability. The company's guidance for the fourth quarter expects sales to be up slightly from the third quarter, driven by product mix benefits, with gross margin expected to be roughly flat year-over-year for the year.

3. NewsRoom

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Has Buffett's Recent Buy of POOL Stock Been Good for Investors?

Nov -29

Source: fool.com

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Pool Corporation: A Long-Term Buy Hidden Behind Near-Term Stagnation

Nov -29

Source: seekingalpha.com

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What to Know Before Buying Pool Corp. Stock

Nov -22

Source: fool.com

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Warren Buffett Has Been a Net Seller for 3 Years, but He's Buying These 3 Stocks

Nov -13

Source: 247wallst.com

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Could This Bear Market Buy Help You Become a Millionaire?

Nov -13

Source: fool.com

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A Once-in-a-Decade Opportunity: 1 Magnificent Dividend Stock Down 56% to Buy Right Now

Nov -13

Source: fool.com

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Buffett Is Underwater Vs. S&P 500 In 2025: $137 Million Loss On Pool Corp Stock Since Q2 Not Helping

Nov -12

Source: benzinga.com

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Why Is Wall Street So Bearish on Pool Corp? There's 1 Key Reason.

Nov -10

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Swimming Pool Supplies, Equipment and Related Leisure Products

Expected Growth: 1.0%

Stable growth in the swimming pool supplies, equipment, and related leisure products segment is driven by increasing consumer spending on outdoor living and recreation, rising demand for pool renovations and upgrades, and growing popularity of backyard leisure activities. Additionally, Pool Corporation's strong distribution network and strategic acquisitions contribute to its market share and revenue growth.

7. Detailed Products

Pool Equipment

Pool Corporation offers a wide range of pool equipment, including pumps, filters, heaters, and valves from top manufacturers.

Pool Chemicals

The company provides a variety of pool chemicals, such as sanitizers, balancers, and oxidizers, to keep pools clean and safe.

Pool Accessories

Pool Corporation offers a range of pool accessories, including pool toys, games, and furniture, to enhance the pool experience.

Irrigation Products

The company provides irrigation products, including sprinkler systems, pumps, and controllers, for residential and commercial applications.

Landscape and Hardscape Products

Pool Corporation offers a range of landscape and hardscape products, including pavers, stones, and outdoor living accessories.

8. Pool Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Pool Corporation has a low threat of substitutes due to the unique nature of its products and services, making it difficult for customers to find alternative options.

Bargaining Power Of Customers

Pool Corporation's customers have some bargaining power due to the availability of alternative products and services, but the company's strong brand reputation and customer loyalty programs help to mitigate this power.

Bargaining Power Of Suppliers

Pool Corporation has a low bargaining power of suppliers due to its large scale of operations and diversified supplier base, giving it negotiating power to secure favorable prices and terms.

Threat Of New Entrants

Pool Corporation has a low threat of new entrants due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

Pool Corporation operates in a moderately competitive industry, with several established players competing for market share, but the company's strong brand reputation and extensive distribution network help it to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.53%
Debt Cost 5.71%
Equity Weight 53.47%
Equity Cost 9.00%
WACC 7.47%
Leverage 87.03%

11. Quality Control: Pool Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 3.7

Quality: 6.0

Yield: 8.0

Momentum: 6.5

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Core & Main

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Quality: 5.4

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A-Score: 4.8/10

Value: 2.8

Growth: 6.9

Quality: 5.9

Yield: 3.0

Momentum: 3.0

Volatility: 7.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

239.52$

Current Price

239.52$

Potential

-0.00%

Expected Cash-Flows