Pool Corp (POOL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $333.93 and a daily gain of 1.68%, despite a three-month decline of 10.57%, Pool Corp stands out as a potentially lucrative investment. The GF Score of 94 out of 100 underscores its high potential for market outperformance in the near future.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently to calculate a comprehensive score that predicts long-term performance. Pool Corp excels with a GF Score of 94, indicating a strong potential for superior returns. Here's a breakdown of its component scores:
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 9/10
- GF Value rank: 7/10
- Momentum rank: 5/10
Understanding Pool Corp's Business
Pool Corp, with a market cap of $12.8 billion and annual sales of $5.46 billion, is the leading distributor of swimming pool supplies and related products. Operating with a 13.01% margin, the company serves approximately 120,000 customers worldwide, offering both national-brand and private-label products. These range from essential maintenance items like chemicals and replacement parts to major pool equipment such as cleaners, filters, and lighting solutions. Pool Corp's diverse customer base includes builders, remodelers, independent retail stores, and service companies.
Financial Strength and Profitability
Pool Corp's financial robustness is evident in its Interest Coverage ratio of 12.67 and an Altman Z-Score of 5.79, indicating low risk of financial distress. The company's strategic debt management is reflected in its 0.24 Debt-to-Revenue ratio. Furthermore, Pool Corp has demonstrated impressive profitability, with a significant increase in its Operating Margin over the past five years, reaching 13.47% in 2023.
Growth Trajectory
Pool Corp's commitment to growth is highlighted by its 13.8% 3-Year Revenue Growth Rate, outperforming 63.89% of its industry peers. The company's EBITDA has also seen a robust increase, with a three-year growth rate of 18.7%. This sustained growth underscores Pool Corp's effective expansion strategies and operational efficiency.
Conclusion
Considering Pool Corp's strong financial metrics, profitability, and growth, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen. Pool Corp's strategic market positioning and robust financial health make it a compelling choice for value investors seeking growth and stability.
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.
