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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).
Ten raport nie został jeszcze przetłumaczony. Odśwież za kilka minut, gdy kolejka tłumaczeń go przetworzy.
§1 Podsumowanie wykonawczeEN
Odpowiedź w 30 sekundHold
Cena a wartość
Cena
$172.57
Wartość godziwa
$166.85
Wartość potencjalna
$194.51
Stan na
2026-10-16
Dlaczego to może zadziałać
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.
Co zmieniłoby naszą ocenę
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
Rekomendacja domu
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.
Przegląd spółki
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 Scenariusz negatywnyEN
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.
Jak ta teza może się załamać
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.
Obecnie:29.7% in Q2 2026
Alarm, jeśliGross margin falling below 28.5% for two consecutive quarters
02
§3 Przewaga konkurencyjnaEN
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.
Zysk ekonomiczny
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.
Znane zagrożenia dla przewagi
Zagrożenie
Powaga
Oś czasu
Złagodzenie
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 Drzewo decyzyjne wynikówEN
Powyżej
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.
Wyzwalacz: 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.
Zgodnie
Maintain Hold; Maintain existing portfolio allocation without deploying fresh capital; verify that non-discretionary maintenance demand continues to generate steady cash conversion.
Wyzwalacz: 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.
Poniżej
Downgrade the rating; Reduce position sizing; re-evaluate whether chemical price deflation or contractor margin compression is permanently impairing distribution returns.
Wyzwalacz: 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.
Jakość wyników
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
Dynamika prognoz
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
Alokacja kapitału
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.
Najnowsze wolne przepływy pieniężne309,5 mln USDFY2025
Dług netto1,4 mld USDFY2025
Struktura rachunku zysków i stratJak skala działalności przekłada się na raportowany zysk.30 cze 2026
StockMarketAgent.AI
Przychody1,8 mld USDKoszt sprzedaży−1,3 mld USDZysk brutto540,8 mln USDKoszty operacyjne−273,1 mln USDZysk operacyjny267,7 mln USDPozycje pozaoperacyjne i podatki−79,6 mln USDZysk netto188,1 mln USD
Dane historii finansowej
Przychody
1 822 938 000 USD
Koszt sprzedaży
1 282 176 000 USD
Zysk brutto
540 762 000 USD
Koszty operacyjne
273 083 000 USD
Zysk operacyjny
267 679 000 USD
Pozycje pozaoperacyjne i podatki
-79 590 000 USD
Zysk netto
188 089 000 USD
Podsumowanie bilansuJak wykazane aktywa są utrzymywane i finansowane w wybranym okresie.
StockMarketAgent.AI
Struktura aktywówFinansowane przez
Aktywa ogółem3,6 mld USDŚrodki pieniężne105 mln USDAktywa obrotowe2 mld USDZobowiązania ogółem2,4 mld USDZobowiązania krótkoterminowe880,3 mln USDKapitał własny1,2 mld USD
Dane podziału bilansu
Aktywa ogółem
3 626 126 000 USD
Środki pieniężne
104 963 000 USD
Aktywa obrotowe
1 969 864 000 USD
Zobowiązania ogółem
2 440 897 000 USD
Zobowiązania krótkoterminowe
880 285 000 USD
Kapitał własny
1 185 229 000 USD
Most przepływów pieniężnychJak przepływy operacyjne przełożyły się na wolne przepływy pieniężne w FY2025.
StockMarketAgent.AI
Uzgodnienie przepływów operacyjnych
Zysk netto406,4 mln USDAmortyzacja+51,6 mln USDWynagrodzenie w akcjach+22,7 mln USDPozostałe korekty operacyjne−114,9 mln USDOperacyjne przepływy pieniężne365,9 mln USD
Uzgodnienie środków na początek i koniec
Środki pieniężne na początek77,9 mln USDOperacyjne przepływy pieniężne+365,9 mln USDPrzepływy inwestycyjne−67,8 mln USDPrzepływy finansowe−273,4 mln USDWpływ kursów walutowych+2,4 mln USDŚrodki pieniężne na koniec105 mln USD
365,9 mln USD − 56,3 mln USDWolne przepływy pieniężne 309,5 mln USD
Dane mostu przepływów pieniężnych
Zysk netto
406 404 000 USD
Wpływy operacyjne
480 742 000 USD
Amortyzacja
51 605 000 USD
Wynagrodzenie w akcjach
22 733 000 USD
Operacyjne przepływy pieniężne
365 850 000 USD
Wydatki operacyjne
114 892 000 USD
Dostępne środki pieniężne
446 134 000 USD
Środki pieniężne na początek
77 862 000 USD
Wpływ kursów walutowych
2 422 000 USD
Wydatki inwestycyjne
67 792 000 USD
Capex
56 334 000 USD
Pozostała działalność inwestycyjna
11 458 000 USD
Wydatki finansowe
273 379 000 USD
Środki pieniężne na koniec
104 963 000 USD
Przepływy inwestycyjne
-67 792 000 USD
Przepływy finansowe
-273 379 000 USD
Przychody według kategorii działalnościUdział w łącznych przychodach za 2026-06-30.
1,8 mldŁączne przychody
Przychody według kategorii działalnościUdział
Cost of1,3 mld70,3%
Pozostałe540,8 mln29,7%
Źródło: SEC EDGAR · Złożono 2026-07-23 · SEC EDGAR
Dane o strukturze przychodów: Przychody według kategorii działalności
Przychody według kategorii działalności
Przychody
Udział
r/r
Cost of
1,3 mld
70,3%
—
Other
540,8 mln
29,7%
—
Przychody według regionuUdział w łącznych przychodach za 2025-12-31.
5,3 mld USDŁączne przychody
Przychody według regionuUdział
United States4,9 mld USD92,6%−0,7% r/r
Non Us388,9 mln USD7,4%+4% r/r
Źródło: SEC EDGAR · Złożono 2026-02-26 · SEC EDGAR
Dane o strukturze przychodów: Przychody według regionu
Przychody według regionu
Przychody
Udział
r/r
United States
4,9 mld USD
92,6%
-0,7%
Non Us
388,9 mln USD
7,4%
4%
Przychody i wynikiJak skala działalności przekłada się na raportowany zysk.
Gotówka i zadłużenieDostępna płynność wobec całkowitego zadłużenia.
Generowanie gotówkiPrzepływy operacyjne w porównaniu z wolnymi przepływami pieniężnymi.
RentownośćZmiany marży brutto, operacyjnej i netto.
Dane finansowe na określony moment użyte w analizie z 2026-10-18.
Dane historii finansowej
Okres
Przychody
EBITDA
Zysk netto
Operacyjne przepływy pieniężne
Wolne przepływy pieniężne
Capex
Amortyzacja
Wynagrodzenie w akcjach
Skup akcji
Wypłacone dywidendy
Emisja długu netto
Przepływy inwestycyjne
Przepływy finansowe
Środki pieniężne na początek
Środki pieniężne na koniec
Gotówka i inwestycje
Zadłużenie ogółem
Marża operacyjna
ROIC
WACC
Spread ROIC−WACC
2016-12-31
2,6 mld USD
277,8 mln USD
149 mln USD
165,4 mln USD
131 mln USD
34,4 mln USD
22 mln USD
9,9 mln USD
178,4 mln USD
49,7 mln USD
—
-55,6 mln USD
-99,7 mln USD
—
22 mln USD
23,5 mln USD
438 mln USD
10,0%
—
5,7%
—
2017-12-31
2,8 mld USD
310,1 mln USD
191,6 mln USD
175,3 mln USD
135,9 mln USD
39,4 mln USD
25,7 mln USD
12,5 mln USD
146 mln USD
58 mln USD
—
-52,2 mln USD
-114,4 mln USD
22 mln USD
29,9 mln USD
31,5 mln USD
519,7 mln USD
10,2%
—
5,5%
—
2018-12-31
3 mld USD
341,8 mln USD
234,5 mln USD
118,7 mln USD
87,1 mln USD
31,6 mln USD
27,9 mln USD
12,9 mln USD
187,5 mln USD
69,4 mln USD
—
-34,2 mln USD
-97,6 mln USD
29,9 mln USD
16,4 mln USD
18,7 mln USD
666,8 mln USD
10,5%
—
6,0%
—
2019-12-31
3,2 mld USD
370,5 mln USD
261,6 mln USD
298,8 mln USD
265,4 mln USD
33,4 mln USD
29,3 mln USD
13,5 mln USD
23,2 mln USD
83,8 mln USD
—
-42,3 mln USD
-244,5 mln USD
16,4 mln USD
28,6 mln USD
29,2 mln USD
689,7 mln USD
10,7%
—
5,1%
—
2020-12-31
3,9 mld USD
493,4 mln USD
366,7 mln USD
397,6 mln USD
375,9 mln USD
21,7 mln USD
29,4 mln USD
14,5 mln USD
76,2 mln USD
91,9 mln USD
—
-146,3 mln USD
-244,4 mln USD
28,6 mln USD
34,1 mln USD
34,4 mln USD
623,8 mln USD
11,8%
—
4,5%
—
2021-12-31
5,3 mld USD
862,8 mln USD
650,6 mln USD
313,5 mln USD
275,8 mln USD
37,7 mln USD
30 mln USD
15,2 mln USD
138 mln USD
119,6 mln USD
—
-849,6 mln USD
526,1 mln USD
34,1 mln USD
24,3 mln USD
24,3 mln USD
1,4 mld USD
15,7%
—
5,4%
—
2022-12-31
6,2 mld USD
1,1 mld USD
748,5 mln USD
484,9 mln USD
441,2 mln USD
43,6 mln USD
39 mln USD
14,9 mln USD
471,2 mln USD
150,6 mln USD
188,3 mln USD
-50,9 mln USD
-411,7 mln USD
24,3 mln USD
45,6 mln USD
45,6 mln USD
1,7 mld USD
16,6%
—
7,6%
—
2023-12-31
5,5 mld USD
786,7 mln USD
523,2 mln USD
888,2 mln USD
828,1 mln USD
60,1 mln USD
40,1 mln USD
19,6 mln USD
306,4 mln USD
167,5 mln USD
-326,4 mln USD
-71,6 mln USD
-798,1 mln USD
45,6 mln USD
66,5 mln USD
66,5 mln USD
1,4 mld USD
13,5%
—
8,1%
—
2024-12-31
5,3 mld USD
662,7 mln USD
434,3 mln USD
659,2 mln USD
599,7 mln USD
59,5 mln USD
45,5 mln USD
19,2 mln USD
306,3 mln USD
179,6 mln USD
-84,1 mln USD
-66,2 mln USD
-576,6 mln USD
66,5 mln USD
77,9 mln USD
77,9 mln USD
1,3 mld USD
11,6%
—
8,6%
—
2025-12-31
5,3 mld USD
631,8 mln USD
406,4 mln USD
365,9 mln USD
309,5 mln USD
56,3 mln USD
51,6 mln USD
22,7 mln USD
346,3 mln USD
184,9 mln USD
249,1 mln USD
-67,8 mln USD
-273,4 mln USD
77,9 mln USD
105 mln USD
105 mln USD
1,5 mld USD
11,0%
—
7,4%
—
§9 Porównanie wyceny z konkurentami
Wartość godziwaReport-date price
Pool CorporationPOOL
Cena / wartość godziwa
Wartość godziwa166,85 USDReport-date price172,57 USD
Data oceny
Przewaga konkurencyjnaNarrow
Karta wyników inwestycyjnych65 / 100
A. O. Smith CorporationAOS
Cena / wartość godziwa
Wartość godziwa60,06 USDReport-date price57,83 USD
Data oceny
Przewaga konkurencyjnaNarrow
Karta wyników inwestycyjnych64 / 100
IDEX CorporationIEX
Cena / wartość godziwa
Wartość godziwa168,38 USDReport-date price234,29 USD
Data oceny
Przewaga konkurencyjnaNarrow
Karta wyników inwestycyjnych63 / 100
Pool CorporationPOOL
Cena / wartość godziwa
Wartość godziwa166,85 USDReport-date price172,57 USD
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 Branża i cyklEN
Faza cyklu
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
Cykl byczy
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.
Cykl niedźwiedzi
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.
Trendy długoterminowe
Trend
Wpływ
Uwaga
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.
Pozycjonowanie
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 Zarządzanie pozycjąEN
Wielkość pozycji
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
Ryzyko
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.
Transze wejścia
Poziom
Działanie
Dlaczego
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
Transze wyjścia
Poziom
Działanie
$194.50 (upper boundary of synthesized fair value range)
Downgrade recommendation and lower normalized operating margin forecast.
Annual Consolidated
§12 Perspektywy inwestorówEN
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 Końcowa rekomendacjaEN
Działanie
Trzymaj
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 USD) plus discounted terminal value (183 USD) minus signed per current share (39,35 USD) equals the 192 USD 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.