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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

Breaking News: Pool Corporation reported Q4 earnings of $0.84 per share, missing the estimate of $0.99 per share. This is a decrease from $0.97 per share a year ago. The company's annual revenue was $5.3 billion, stable year-over-year, while fourth-quarter sales were $982 million, a 1% decrease from the previous year. Gross margin for 2025 was 29.7%, up 20 basis points. Some analysts consider the stock still expensive with no rebound in sight, and recommend a sell.

1.c. Company Highlights

2. Pool Corp's 2025 Earnings Report: A Resilient Performance Amidst Industry Challenges

Pool Corp's 2025 financial performance was marked by steady revenue of $5.3 billion, consistent with the prior year, despite having one less selling day. The company's gross margin expanded to 29.7%, a 20 basis point improvement year-over-year, driven by effective supply chain management, pricing strategies, and increased private label sales. The company's diluted earnings per share (EPS) was $10.85, a 4% decline from the previous year's $11.30, including an Accounting Standards Update (ASU) benefit of $0.12 per diluted share. Adjusted diluted EPS was $10.73, a 3% decrease from $11.07 in 2024. In the fourth quarter, sales decreased by 1% compared to the prior year, with a 2% net pricing benefit, while gross margin was 30.1%, a 70 basis point improvement.

Publication Date: Feb -20

📋 Highlights
  • Revenue Stability:: Annual revenue held steady at $5.3 billion year-over-year, supported by resilient maintenance demand and 2% net pricing benefits.
  • Gross Margin Growth:: Achieved 29.7% gross margin in 2025, a 20 basis point increase from the prior year, with Q4 gross margin at 30.1%.
  • Digital Sales Expansion:: Digital sales accounted for 15% of total revenue in 2025, an all-time high, driven by POOL360 and AI enhancements.
  • Store Network Growth:: Opened 8 new locations and acquired 3, totaling 456 sales centers by year-end, with plans for 5–8 new centers in 2026.
  • EPS Guidance:: 2026 diluted EPS projected at $10.85–$11.15, reflecting disciplined capital allocation and $5M–$15M in incentive compensation costs.

Operational Highlights

The company maintained its market position despite a mid-single-digit decline in new pool construction, driven by its differentiated offering and commitment to service. Maintenance spending proved resilient, with maintenance items accounting for roughly 64% of the company's pool product sales. The company continued to invest in technology, launching POOL360 and unlocking new artificial intelligence features, which contributed to digital sales reaching 15% of total revenue in 2025, an all-time high.

Guidance and Outlook

For 2026, the company expects net sales to grow in the low single-digit range, assuming new pool construction stays close to the 60,000 units seen in 2025. The company's guidance for 2026 is a diluted EPS range of $10.85 to $11.15, with gross margin projected to be consistent with 2025. Analysts estimate next year's revenue growth at 4.4%, slightly higher than the company's guidance. The actual EPS for the fourth quarter came out at $0.856, relative to estimates at $0.99.

Valuation Metrics

To understand what's priced into Pool Corp's stock, we can look at its valuation metrics. The company's Price-to-Earnings (P/E) Ratio is 19.76, indicating a relatively high valuation compared to its earnings. The Price-to-Book (P/B) Ratio is 6.78, suggesting that the stock may be overvalued relative to its book value. The EV/EBITDA ratio is 13.61, which is a more comprehensive metric that takes into account the company's debt and cash. As Peter Arvan mentioned, "the team made judicious investments in inventory and was surgical about allocating capital," which may contribute to the company's future growth prospects.

Return on Investment and Capital Allocation

The company is focused on execution and realizing the commitments made in the pro formas for existing facilities. The team has sharpened its expectations on return on investment for new locations, which is expected to drive future growth. Pool Corp's capital allocation strategy includes reinvesting 1% to 1.5% of net sales back into the business and allocating $25 million to $50 million toward acquisitions. The company also intends to continue repurchasing shares on an opportunistic basis, with a dividend yield of 2.27%. With a Return on Equity (ROE) of 31.86% and a Return on Invested Capital (ROIC) of 15.43%, the company has demonstrated its ability to generate strong returns for shareholders.

3. NewsRoom

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Pool Corp (POOL) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth and Shareholder Returns

Feb -19

Source: gurufocus.com

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Pool Corporation (POOL) Q4 2025 Earnings Call Transcript

Feb -19

Source: seekingalpha.com

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Pool Corporation: Still Expensive With No Rebound In Sight

Feb -19

Source: seekingalpha.com

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Pool Corp. (POOL) Lags Q4 Earnings and Revenue Estimates

Feb -19

Source: zacks.com

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4 Stocks to Buy Now (And 1 Surprising Sell)

Feb -18

Source: youtube.com

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David Rolfe's Strategic Moves: Chubb Ltd Takes Center Stage with 3.29% Portfolio Share

Feb -17

Source: gurufocus.com

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Pool Corp to Report Q4 Earnings: What's in the Offing for the Stock?

Feb -17

Source: zacks.com

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3 Leisure Stocks Set to Outperform Q4 Earnings Expectations

Feb -17

Source: zacks.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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A-Score: 4.7/10

Value: 3.6

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Quality: 6.1

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Quality: 5.4

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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

221.62$

Current Price

221.62$

Potential

-0.00%

Expected Cash-Flows