Pool Corp (POOL, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance. With a current share price of $370.54 and a daily gain of 0.38%, coupled with a three-month change of 2.63%, the company shows promising signs of substantial growth. A detailed analysis using the GF Score indicates that Pool Corp is poised for notable future advancements.
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 significant growth 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 $14.2 billion and annual sales of $5.37 billion, operates as a leading distributor of swimming pool supplies and related products. The company's diverse product range includes essential maintenance items like chemicals and replacement parts, as well as equipment such as pool kits, cleaners, filters, heaters, and lights. Serving approximately 120,000 customers, including pool builders, remodelers, independent retail stores, and service companies, Pool Corp has established a solid market presence.
Financial Strength Breakdown
Pool Corp's financial robustness is evident through its impressive Interest Coverage ratio of 12.3 and an Altman Z-Score of 6.29, indicating a strong shield against financial distress. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.27, underscoring a prudent capital structure.
Profitability and Growth Metrics
Pool Corp's profitability is highlighted by its increasing Operating Margin, which has grown significantly over the past five years. The company's Gross Margin also reflects a consistent upward trend, demonstrating enhanced efficiency in revenue conversion into profit. Furthermore, Pool Corp's Growth Rank is supported by a 3-Year Revenue Growth Rate of 13.8%, outperforming a substantial portion of its industry peers.
Conclusion
Considering Pool Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score distinctly highlights the company's superior position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
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.
