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 $325.36 and a recent daily gain of 2.52%, despite a three-month decline of 14.58%, the company's prospects are bolstered by a high GF Score of 92 out of 100. This score indicates a potential for significant 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 crucial indicators of a stock's potential long-term performance. Pool Corp excels in several of these areas, with particularly high scores in profitability (10/10), growth (8/10), and GF Value (9/10), though its momentum rank stands at a moderate 5/10.
Understanding Pool Corp's Business
Pool Corp, with a market cap of $12.47 billion and annual sales of $5.46 billion, is the leading distributor of swimming pool supplies and related products. Operating with a healthy 13.01% margin, the company serves around 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 providers.
Financial Strength and Stability
Pool Corp's financial robustness is evident through its impressive Interest Coverage ratio of 12.67 and an Altman Z-Score of 5.69, indicating a low risk of financial distress. Additionally, its strategic debt management is reflected in a Debt-to-Revenue ratio of 0.24, underscoring a prudent approach to leverage and capital allocation.
Profitability and Growth Prospects
Pool Corp has demonstrated consistent profitability, with an operating margin increase to 13.47% in 2023 from 10.67% in 2019. This trend is supported by a steady improvement in gross margins over the same period, highlighting the company's efficiency in revenue conversion. The firm's growth is equally impressive, with a 3-year revenue growth rate of 13.8%, significantly outpacing many peers in the Industrial Distribution industry.
Conclusion: A Promising Investment?
Considering Pool Corp's strong financial metrics, consistent profitability, and robust growth rates, the company's high GF Score underscores its potential for market outperformance. Investors looking for solid returns in a stable industry may find Pool Corp an attractive option. For more insights and similar high-performing stocks, consider exploring our 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.
