Leslies Inc (LESL, Financial) has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $1.3 billion, the stock is trading at $7.06, reflecting an 8.34% loss over the past week. However, looking at a broader timeframe, LESL has gained 11.39% over the past three months. This performance is particularly interesting when considering the company's GF Value, which stands at $15.96, down from a past GF Value of $20.9. Despite the recent dip, the current and past GF Valuations indicate that the stock is significantly undervalued, suggesting potential for future growth.
Introduction to Leslies Inc
Leslies Inc, operating within the cyclical retail industry, is a leading direct-to-consumer pool and spa care brand in the United States. The company offers a wide range of products for residential and commercial pools and spas, including chemicals, equipment, parts, and maintenance tools. With a focus on residential pool and spa care, LESL has established a strong presence in its niche market. 
Assessing Profitability
Leslies Inc's profitability is robust, with a Profitability Rank of 7/10. The company's operating margin stands at 6.48%, outperforming 65.16% of 1,108 companies in the same industry. Its Return on Equity (ROE) is reported as 10000.00%, which is better than 99.91% of its peers, although this figure suggests a potential data anomaly or an extraordinary event that may not be sustainable. The Return on Assets (ROA) at 1.66% is better than 46.24% of the industry, and the Return on Invested Capital (ROIC) of 7.87% is higher than 66.64% of competitors. Leslies Inc has maintained profitability for 6 out of the past 10 years, which is more consistent than 39.77% of companies. 
Growth Trajectory
The company's Growth Rank is also impressive at 7/10. Leslies Inc has seen a 3-Year Revenue Growth Rate per Share of 9.60%, surpassing 65% of 1,037 companies. Its 5-Year Revenue Growth Rate per Share is even more remarkable at 12.80%, which is better than 78.58% of 915 companies. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is modest at 0.97%, outperforming 24.45% of 229 companies. The 3-Year EPS without NRI Growth Rate shows a decline of -12.60%, but this is still better than 24.02% of 816 companies, while the 5-Year EPS without NRI Growth Rate has soared by 47.90%, placing LESL ahead of 93.95% of 512 companies. 
Key Shareholders
John Rogers (Trades, Portfolio) is the leading shareholder with 29,231,420 shares, representing a 15.84% stake in the company. HOTCHKIS & WILEY holds 1,128,010 shares (0.61% share percentage), followed by PRIMECAP Management (Trades, Portfolio) with 976,800 shares (0.53% share percentage). The involvement of these significant investors underscores confidence in LESL's business model and future prospects.
Competitive Landscape
When compared to its competitors, Leslies Inc holds a strong market position. Olaplex Holdings Inc (OLPX, Financial) has a market cap of $1.14 billion, Petco Health and Wellness Co Inc (WOOF, Financial) is valued at $567.571 million, and ARKO Corp (ARKO, Financial) has a market cap of $668.396 million. LESL's market cap of $1.3 billion positions it as a leader within this group, reflecting its solid market share and potential for growth.
Conclusion
In summary, Leslies Inc's stock performance and valuation indicate a company that is currently undervalued, with significant room for growth. The company's profitability and growth metrics are strong, particularly in comparison to industry peers. The presence of notable shareholders further supports the positive outlook for LESL. When juxtaposed with its competitors, Leslies Inc demonstrates a competitive edge in market capitalization, suggesting a robust position within the retail - cyclical industry. Investors may find LESL an attractive option for their portfolios, given its potential for value appreciation and solid financial health.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
