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Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
POOL — frequently asked questions
Is Pool Corporation overvalued?
In our latest published analysis dated 2026-10-18, POOL trades close to fair value. The price recorded at analysis is 173 USD versus our fair value of 167 USD; the high endpoint is presented separately as potential value of 195 USD. That implies roughly 3.3% downside to fair value at that date.
Our latest published report, analyzed 2026-10-18, gives POOL a fair value of 167 USD and a potential value of 195 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Pool Corporation's archetype; it is a dated research output, not a live price.
Should I buy POOL now?
Our latest published rating for POOL, analyzed 2026-10-18, is Hold. Pool Corporation trades close to fair value at the analysis-date price of 173 USD versus fair value of 167 USD; potential value is 195 USD. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for POOL?
The dedicated bear-case section in our report analyzed 2026-10-18 documents Pool Corporation's material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is POOL's rating?
Our latest published rating for POOL, analyzed 2026-10-18, is Hold, with a published moat assessment of 7.5/10 (Narrow). It reflects our fair value of 167 USD, the potential value of 195 USD, and the price recorded at analysis (173 USD).
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§1 RésuméEN
Réponse en 30 secondesHold
Prix par rapport à la valeur
Cours
$172.57
Juste valeur
$166.85
Valeur potentielle
$194.51
Au
2026-10-16
Pourquoi le scénario peut fonctionner
An easing of mortgage interest rates and reactivation of residential housing turnover would unlock deferred demand for new pool installations and high-ticket remodels, driving operating leverage across POOL's distribution sales centers to expand operating margins.
Ce qui changerait notre avis
Sunbelt residential pool construction permits contracting sharply year-over-year alongside chemical price deflation.
Pool Corporation (POOL) trades at $172.57 (as of 2026-10-16), representing -3.3% upside to Fair value of $166.85, supporting a Hold rating amid balanced recurring maintenance stability and discretionary construction headwinds.4
Our intrinsic valuation of Pool Corporation yields a Fair value of $166.85 with Potential value of $194.51. At $172.57, the stock trades at -3.3% to Fair value. This balanced valuation aligns with our Hold recommendation, indicating that while downside is cushioned by durable maintenance cash flows, the market reflects near-term operating expectations.
POOL's operational resilience is anchored in the non-discretionary maintenance requirements of the North American swimming pool base. Routine water chemistry, sanitization, pump replacements, and seasonal filtration maintenance comprise roughly 60% of total sales, ensuring steady branch revenues across 455 distribution centers regardless of broader economic volatility. This recurring stream generated $309,516,000 in free cash flow during FY2025, supporting steady dividends and open-market share buybacks.5,6,7
Conversely, the remaining revenue derived from new pool construction and major backyard remodeling remains constrained by elevated mortgage interest rates and depressed existing home turnover. While H1 2026 sales increased to $2,960,952,000, gross margin contracted due to inbound freight and product mix. With valuation multiples reflecting peer premiums, the stock offers limited near-term valuation upside.3,5,7
Resilient Installed Base Cash Generation
Over 60% of POOL's revenue base is tied to non-discretionary maintenance, chemical sanitization, and equipment repair required to maintain existing pools, generating steady baseline cash flow regardless of macro housing cycles.7
Unrivaled Wholesale Distribution Scale
An unmatched footprint of 455 distribution centers stocking over 200,000 SKUs provides local fulfillment proximity for 125,000 professional contractors, creating scale efficiencies that competitors cannot economically replicate.5
An asset-light distribution model requiring low capital expenditure ($56,334,000 in FY2025) allows POOL to consistently return excess cash through dividends ($184,916,000) and share repurchases ($346,286,000).7
Recommandation maison
Hold. At $172.57, POOL trades in line with Fair value of $166.85, where durable maintenance demand cushions downside but subdued discretionary housing activity limits near-term upside.
Présentation de l’entreprise
Pool Corporation is the world's largest wholesale distributor of swimming pool supplies, equipment, and related leisure products. As of June 30, 2026, the company operated 455 sales centers across North America, Europe, and Australia, distributing more than 200,000 brand-name and private-label products to approximately 125,000 professional wholesale customers.
POOL serves swimming pool builders, independent service and maintenance technicians, and specialty retail stores. In FY2025, consolidated net sales were $5,289,396,000, with the United States market contributing $4,900,465,000 (92.65% of net sales) and international operations accounting for $388,931,000 (7.35%).
§2 Cas baissierEN
Under an acute stress test combining a complete freeze in new residential pool construction with deflationary chemical pricing and inbound freight headwinds, POOL's top-line revenue would contract toward $5.0B-$5.1B, operating margins would compress from 10.97% to 8.0%, and annual diluted EPS would drop toward $8.50-$9.00. While non-discretionary recurring maintenance demand generates over $200M in cash flow to protect liquidity and service $1,535,031,000 in total debt, a multiple de-rating toward peer wholesale building distributor levels of 12.8x-14.6x would severely impair equity valuation.
High interest rates persist, severely suppressing new pool installations and discretionary upgrades. Sub-scale price competition and input cost deflation compress gross margins, limiting EPS growth and causing valuation multiples to contract toward lower-growth distributor peers.
Comment cette thèse peut échouer
Severe gross margin compression from chemical price deflation, elevated inbound freight costs, and contractor price resistance driving operating margin down by 300 bps.
Deflation in sanitizing chemicals and rising freight expenses overwhelming branch pricing discipline, eroding distributor gross profitability.
Actuel :29.7% in Q2 2026
Alerte siGross margin falling below 28.5% for two consecutive quarters
02
§3 Avantage concurrentielEN
Narrow
Pool Corporation earns a Narrow economic moat rating rooted in scale advantages across its wholesale distribution network and the non-discretionary recurring maintenance demand generated by an expanding installed swimming pool base. With 455 sales centers worldwide as of June 30, 2026, POOL operates as the primary supply conduit between fragmented equipment manufacturers and approximately 125,000 professional pool builders and independent maintenance contractors.
The distribution footprint enables same-day product pickup and dense regional delivery for more than 200,000 SKUs, providing a service standard that sub-scale regional distributors cannot economically duplicate. Because commercial and residential pools require continuous sanitization and filtration to prevent algae formation and structural degradation, roughly 60% of POOL's revenue base is non-discretionary, buffering operating profit even as higher interest rates suppress new in-ground construction permits.
While manufacturing peers like Snap-on (25.40% operating margin) command higher pricing power from proprietary patents, POOL achieves superior capital turnover with minimal capital expenditures ($56,334,000 in FY2025). This capital-light distribution model generated an 18.5% ROIC on $2,384,682,000 of invested capital in FY2025, exceeding its 8.26% WACC and sustaining durable competitive advantages.
Profit économique
POOL generated an estimated 18.5% return on invested capital in FY2025 on $2,384,682,000 of invested capital. This comfortably exceeds the company's computed weighted average cost of capital of 8.26% and moderate cost of equity of 9.33%, proving substantial economic value creation across housing cycles.2,6
7.5/ 10
Narrow
Sources of advantage
01Wholesale distribution network scale and branch density — Operating 455 sales centers stocking over 200,000 products serves roughly 125,000 wholesale customers, delivering $580,204,000 in operating income in FY2025 and an 11.0% operating margin without manufacturing capital expenditure exposure.Wide
02Installed pool base and contractor workflow switching friction — Recurring pool maintenance, water sanitization, and equipment repair represent non-discretionary expenditures across an expanding base of installed pools, supporting $309,516,000 in FY2025 and resilient branch traffic through housing construction troughs.
Menaces connues pour l'avantage
Menace
Gravité
Calendrier
Atténuation
E-commerce platforms and manufacturer direct-to-contractor distribution channels attempting to bypass wholesale distributors.
medium
3 to 5 years
Hazardous material transport regulations on sanitizing chemicals, bulky freight costs, and professional contractor demand for immediate morning job-site pickup protect physical sales centers from pure digital disintermediation.5
The highlighted cell is Fair value when every assumption sits at its base level ($166.85). Each row and column shows what Fair value becomes when one assumption moves.
Free cash flow to the firm stays positive in the first projected year at $387.8M after modeled reinvestment of $68.4M, with terminal value at 79.3% of enterprise value. A sudden drop in free cash flow is not projected unless capital spending relative to revenue, reinvestment, or gross margin resets materially.
The modal expected path where non-discretionary maintenance demand provides a stable baseline, while new pool construction recovers gradually alongside housing turnover. Ongoing share buybacks and steady dividend growth support mid-single-digit EPS expansion through FY2030.
Revenue growth accelerates to 4.5%-5.5% annually as mortgage rates ease and Sunbelt home turnover rebounds.8
§7 Arbre de décision sur les résultatsEN
Dépassé
Upgrade the rating; Examine whether operating margin expansion is driven by sustainable operating leverage and whether Sunbelt new pool permits show consecutive quarterly growth before considering an increased allocation.
Déclencheur: Quarterly net sales exceeding consensus expectations and operating margin expanding year-over-year.
A decisive earnings beat driven by volume acceleration in building materials and discretionary equipment upgrades would indicate an inflection in housing turnover and justify modeling an accelerated top-line path.
Conforme
Maintain Hold; Maintain existing portfolio allocation without deploying fresh capital; verify that non-discretionary maintenance demand continues to generate steady cash conversion.
Déclencheur: Quarterly net sales and diluted EPS meeting consensus expectations with gross margin remaining stable.
In-line results confirm the resilience of maintenance revenue but demonstrate that high mortgage rates continue to suppress discretionary pool additions, keeping the risk/reward profile balanced around current market prices.
Manqué
Downgrade the rating; Reduce position sizing; re-evaluate whether chemical price deflation or contractor margin compression is permanently impairing distribution returns.
Déclencheur: Quarterly gross margin compressing significantly or net sales contracting year-over-year.
A material quarterly earnings miss driven by gross margin erosion and volume contraction would signal competitive price erosion, requiring downward revisions to terminal operating margins and valuation multiples.
Qualité des résultats
High earnings quality supported by disciplined cash flow conversion. FY2025 GAAP net income of $406,404,000 converted into $365,850,000 of operating cash flow and $309,516,000 of free cash flow. Second quarter 2026 results demonstrated clean reporting with transparent reconciliation of $8,262,000 ($0.21 per share) in pre-tax CEO transition costs.5,6,7
Dynamique des estimations
Sell-side consensus estimate revisions have flattened post-Q2 2026 results. FY2026 EPS consensus was slightly adjusted from $11.00 to $11.00 while FY2026 revenue consensus edged from $5.44B to $5.44B. For FY2027, EPS consensus moderated from $11.81 to $11.76 alongside revenue consensus of $5.62B, reflecting realistic assumptions of gradual multi-year housing recovery.1
The company's distribution model requires minimal maintenance capital expenditures, averaging approximately 1.0% of revenue ($56,334,000 in FY2025). This generated $309,516,000 in free cash flow in FY2025. Working capital shows pronounced seasonality; in the first half of 2026, product inventories peaked at $1,378,695,000 to support peak spring/summer contractor stocking, resulting in minor operating cash usage of $748,000, before unwinding into strong cash inflows in Q3 and Q4.5,6,7
Allocation du capital
POOL exhibits disciplined capital allocation focused on returning excess cash to shareholders while reinvesting modestly in network expansion. In FY2025, operating cash flow of $365,850,000 funded $56,334,000 in , $184,916,000 in cash dividends, and $346,286,000 in repurchases. Capital returns exceeded of $406,404,000, financed by operating cash generation and existing liquidity. Total debt stood at $1,535,031,000, with FY2025 of $46,770,000 covered 12.4x by of $580,204,000.
POOL generated an estimated 18.5% ROIC on $2,384,682,000 of invested capital in FY2025. While down from pandemic peaks (15.7%-16.6% operating margins in FY2021-FY2022), it remains higher than the pre-2020 historical range of 9.95% to 10.67%, demonstrating stable structural returns on capital.
ROIC of ~18.5% exceeds computed WACC of 8.26% and moderate cost of equity of 9.33% by over 900 basis points, confirming continued economic profit creation across the 455 branch network.
FY2025 free cash flow reached $309,516,000 on $56,334,000 of .
Dernier chiffre d’affaires5,3 Md $USTCAC du chiffre d’affaires +8,3 %
Marge opérationnelle11,0 %10 périodes fiscales
Dernier flux de trésorerie disponible309,5 M $USFY2025
Dette nette1,4 Md $USFY2025
Décomposition du compte de résultatComment la taille de l’activité se traduit en bénéfice publié.30 juin 2026
StockMarketAgent.AI
Chiffre d'affaires1,8 Md $USCoût des ventes−1,3 Md $USMarge brute540,8 M $USCharges d’exploitation−273,1 M $USRésultat d'exploitation267,7 M $USÉléments hors exploitation et impôts−79,6 M $USRésultat net188,1 M $US
Données de l’historique financier
Chiffre d'affaires
1 822 938 000 $US
Coût des ventes
1 282 176 000 $US
Marge brute
540 762 000 $US
Charges d’exploitation
273 083 000 $US
Résultat d'exploitation
267 679 000 $US
Éléments hors exploitation et impôts
-79 590 000 $US
Résultat net
188 089 000 $US
Aperçu du bilanComment les actifs publiés sont détenus et financés pour la période sélectionnée.
StockMarketAgent.AI
Composition des actifsFinancé par
Total de l’actif3,6 Md $USTrésorerie105 M $USActifs courants2 Md $USTotal du passif2,4 Md $USPassifs courants880,3 M $USCapitaux propres1,2 Md $US
Données de ventilation du bilan
Total de l’actif
3 626 126 000 $US
Trésorerie
104 963 000 $US
Actifs courants
1 969 864 000 $US
Total du passif
2 440 897 000 $US
Passifs courants
880 285 000 $US
Capitaux propres
1 185 229 000 $US
Passerelle des flux de trésorerieComment le flux de trésorerie d’exploitation est devenu du flux de trésorerie disponible en FY2025.
StockMarketAgent.AI
Rapprochement des flux d’exploitation
Résultat net406,4 M $USDotations aux amortissements+51,6 M $USRémunération en actions+22,7 M $USAutres ajustements opérationnels−114,9 M $USFlux de trésorerie d'exploitation365,9 M $US
Rapprochement de la trésorerie d’ouverture à la clôture
Trésorerie d’ouverture77,9 M $USFlux de trésorerie d'exploitation+365,9 M $USFlux d’investissement−67,8 M $USFlux de financement−273,4 M $USEffet de change+2,4 M $USTrésorerie de clôture105 M $US
365,9 M $US − 56,3 M $USFlux de trésorerie disponible 309,5 M $US
Données de la passerelle des flux de trésorerie
Résultat net
406 404 000 $US
Entrées d’exploitation
480 742 000 $US
Dotations aux amortissements
51 605 000 $US
Rémunération en actions
22 733 000 $US
Flux de trésorerie d'exploitation
365 850 000 $US
Sorties d’exploitation
114 892 000 $US
Trésorerie disponible
446 134 000 $US
Trésorerie d’ouverture
77 862 000 $US
Effet de change
2 422 000 $US
Sorties d’investissement
67 792 000 $US
Capex
56 334 000 $US
Autres activités d’investissement
11 458 000 $US
Sorties de financement
273 379 000 $US
Trésorerie de clôture
104 963 000 $US
Flux d’investissement
-67 792 000 $US
Flux de financement
-273 379 000 $US
Chiffre d’affaires par activitéPart du chiffre d’affaires total pour 2026-06-30.
1,8 MdChiffre d’affaires total
Chiffre d’affaires par activitéPart
Cost of1,3 Md70,3 %
Autres540,8 M29,7 %
Source: SEC EDGAR · Déposé le 2026-07-23 · SEC EDGAR
Données de répartition du chiffre d’affaires: Chiffre d’affaires par activité
Chiffre d’affaires par activité
Chiffre d'affaires
Part
sur un an
Cost of
1,3 Md
70,3 %
—
Other
540,8 M
29,7 %
—
Chiffre d’affaires par zone géographiquePart du chiffre d’affaires total pour 2025-12-31.
5,3 Md $USChiffre d’affaires total
Chiffre d’affaires par zone géographiquePart
United States4,9 Md $US92,6 %−0,7 % sur un an
Non Us388,9 M $US7,4 %+4 % sur un an
Source: SEC EDGAR · Déposé le 2026-02-26 · SEC EDGAR
Données de répartition du chiffre d’affaires: Chiffre d’affaires par zone géographique
Chiffre d’affaires par zone géographique
Chiffre d'affaires
Part
sur un an
United States
4,9 Md $US
92,6 %
-0,7 %
Non Us
388,9 M $US
7,4 %
4 %
Chiffre d’affaires et résultatsComment la taille de l’activité se traduit en bénéfice publié.
Trésorerie et detteLiquidités disponibles face à l’endettement total.
Génération de trésorerieFlux de trésorerie d’exploitation comparé au flux de trésorerie disponible.
RentabilitéÉvolution des marges brute, opérationnelle et nette.
Données financières ponctuelles utilisées dans l’analyse du 2026-10-18.
Pool Corporation (POOL) trades at 17.1x forward earnings against a peer median of 15.9x. Its EV/EBITDA of 12.3x compares with a peer median of 12.1x. The comparison uses 4 peers: Stanley Black & Decker Inc., A. O. Smith Corporation, IDEX Corporation and Snap-on Incorporated, as of 2026-10-17 to 2026-10-18.
§10 Secteur et cycleEN
Phase du cycle
Contraction
Industry capital-intensity, capacity, and lead-time benchmarks are unavailable in current data, so the cycle view is demand-led and evidence-limited. Following peak demand in FY2021-FY2022, POOL's revenue contracted from $6.18B to $5.29B in FY2025, stabilizing in H1 2026 with 4% growth to $2.96B.5,7
Cycle haussier
A decline in mortgage interest rates stimulates existing home sales and unlocks homeowner equity, accelerating in-ground pool construction permits and deferred high-margin equipment modernizations.
Cycle baissier
A prolonged freeze in residential housing turnover caused by persistent mortgage rate lock-in and elevated consumer borrowing costs extends the slump in new pool permits, leading to distributor discounting and branch fixed-cost de-leverage.
Tendances séculaires
Tendance
Impact
Note
Sunbelt demographic migration and residential outdoor living expansion
positive
Sustained population in-migration to warm-weather southern and western US states permanently expands the installed base of residential in-ground pools, driving recurring lifetime maintenance demand.
Automation, energy efficiency, and eco-friendly pool technology adoption
positive
Transition toward connected smart pools, energy-efficient variable-speed filtration pumps, and eco-friendly automated sanitizers increases the dollar value of equipment replacements and professional service calls.
Mortgage rate lock-in and subdued existing home turnover
negative
Elevated residential mortgage rates disincentivize homeowner relocations and dampen home equity loan issuance, delaying large-ticket discretionary pool installations and structural remodels.
Positionnement
POOL maintains strong market positioning as the dominant distributor across primary US Sunbelt migration corridors. With 92.65% of net sales generated in the United States ($4,900,465,000 in FY2025), the company's financial results are insulated from foreign trade and currency disputes, while non-US operations ($388,931,000 in FY2025) offer incremental growth in European leisure markets.8
§11 Gestion de positionEN
Taille de position
2-3%
A neutral allocation of 2-3% of portfolio equity reflects balanced risk/reward at $172.57. High cash conversion and installed base durability prevent downside deterioration, but lack of valuation discount warrants capital preservation over aggressive positioning.4
Risque
Maintain disciplined portfolio exposure to POOL. Enforce strict risk discipline against sudden gross margin deterioration. Avoid averaging down into declining share prices without an expanded valuation discount.
Tranches d'entrée
Niveau
Action
Pourquoi
Substantial discount to $166.85
Initiate partial position or accumulate selectively
Represents an approximate 15% discount to fair value ($166.85), offering an attractive entry point where maintenance cash flows provide significant downside protection.
Extended discount to $166.85
Aggressive accumulation
Tranches de sortie
Niveau
Action
$194.50 (upper boundary of synthesized fair value range)
Downgrade recommendation and lower normalized operating margin forecast.
Annual Consolidated
§12 Perspectives des investisseursEN
Value Investor
Hold
With shares trading near $166.85 relative to $172.57, POOL lacks an adequate valuation buffer given its forward earnings multiple. Value-oriented investors should await a meaningful price discount before accumulating.4
Income / Dividend Investor
Hold
POOL's dividend payout is safe and well-covered by free cash flow ($309.52M in FY2025 vs $184.92M paid), but the moderate yield warrants holding existing shares rather than initiating an income position.6,7
Growth / Momentum Investor
Hold
Near-term EPS expansion is constrained to low-single digits ($10.85 in FY2025 to $11.00 in FY2026). Growth investors should await confirmed inflection in Sunbelt housing permits before building exposure.1,7
§14 Recommandation finaleEN
Action
Conserver
We initiate coverage on Pool Corporation (POOL) with a Hold rating and a Fair value of $166.85. At $172.57 (as of 2026-10-16), the stock trades at -3.3% to Fair value. While recurring maintenance cash flows protect downside, sluggish discretionary pool construction limits near-term capital appreciation.4
Investors holding POOL should maintain current positions while awaiting either a meaningful valuation pullback or clear inflection in new pool construction permits before deploying fresh capital.
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Sources
The records this analysis drew on, as they stood when it was run.
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Prolonged housing turnover freeze and discretionary spending pullback causing revenue growth to lag baseline by 5 percentage points over the 5-year forecast horizon.
POOL's revenue contracted from $6.18B in FY2022 to $5.29B in FY2025. Analyst revenue consensus for FY2027 was revised down to $5.62B. If Sunbelt pool construction permits decline sharply, top-line growth stalls 5pp below the modeled 3.5%-4.5% path.1,7
FV impact
-6.1%
Revenue and EPS growth 5 points lower for five years
Trigger
Within 24 months
Multiple de-rating toward lower-margin wholesale distributor benchmarks as earnings growth stalls, compressing terminal P/E from 16.0x to 12.8x (-20%).
Peer mature building and equipment manufacturers trade below 15x forward earnings, with AOS at 14.60x and SWK at 14.68x. If POOL's EPS growth stalls near 2-3%, its premium multiple of 17.09x de-rates by 20% to 12.8x.3,4
Commoditization and price deflation in core water treatment chemicals such as trichlor compressing gross margins.
low
12 to 18 months
Vendor diversification, expansion of proprietary private-label chemical formulations, and disciplined branch inventory turns protect dollar gross profits, keeping gross margin at 29.7% in Q2 2026.5
Discounted forecast-period cash flows (47,95 $US) plus discounted terminal value (183 $US) minus signed per current share (39,35 $US) equals the 192 $US lens value shown above. Negative net debt is , so subtracting it raises value.
Mortgage interest rates decline, releasing pent-up demand for new residential pool construction and major backyard renovations. Accelerated contractor adoption of premium variable-speed equipment and private-label water treatment expands branch gross margins, driving robust EPS expansion by FY2030.
Drives the higher-margin discretionary segment and expands the future installed pool maintenance base.