Pool Corp (POOL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial performance and promising market position. With a current share price of $367.95, despite a slight daily decrease of 1.05%, Pool Corp has shown a commendable three-month growth of 9.19%. A detailed analysis, supported by the GF Score, positions Pool Corp for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Pool Corp boasts a GF Score of 93, signaling strong future performance potential.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 9/10
- GF Value rank: 6/10
- Momentum rank: 5/10
Understanding Pool Corp's Business
Pool Corp, with a market cap of $14.08 billion and annual sales of $5.37 billion, is a leading distributor of swimming pool supplies and related products. The company boasts an operating margin of 12.18% and serves approximately 120,000 customers worldwide. Pool Corp's offerings range from essential maintenance products to advanced pool equipment, catering to a diverse clientele including builders, retailers, and service companies.
Financial Strength Breakdown
Pool Corp's financial resilience is evident through its robust balance sheet and strategic debt management, with a Debt-to-Revenue ratio of 0.27. The company's Interest Coverage ratio stands at an impressive 12.3, significantly above the benchmark set by investment guru Benjamin Graham. Additionally, an Altman Z-Score of 6.62 further underscores Pool Corp's financial stability.
Profitability and Growth Metrics
Pool Corp's profitability is highlighted by its exceptional Operating Margin, which has consistently improved over the past five years, reaching 13.47% in 2023. The company's Gross Margin also reflects a steady increase, demonstrating enhanced efficiency in revenue conversion. Growth-wise, Pool Corp has outperformed 63.7% of its industry peers with a 3-Year Revenue Growth Rate of 13.8%.
Conclusion: A Promising Investment?
Considering Pool Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's strong position for potential market outperformance. For investors looking for similar opportunities, the GF Score Screen offers a valuable tool for identifying high-potential stocks. Is Pool Corp poised to continue its trajectory towards market leadership?
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.
