# Pool (POOL.US)

Canonical: https://gigainvestors.com/s/POOL

Analysis as of: 2026-10-16T07:31:16.650Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $169.12 per share; close as of 2026-10-15.

Estimated value: low $153.71 per share, central $175.20 per share, high $203.83 per share. Buy at or below the central value $175.20 per share. Valuation as of 2026-10-16T07:31:16.650Z; scenarios are not confidence intervals.

Expected annual return: 10.3% at the stated quote. About 10.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.10×

- FY2018: 0.10×

- FY2019: 0.11×

- FY2020: 0.12×

- FY2021: 0.16×

- FY2022: 0.17×

- FY2023: 0.13×

- FY2024: 0.12×

- FY2025: 0.11×

- LTM to Jun 2026: 0.11×

### moat: pass

- ROIC, median of available years: 34.0%

- ROIC, second-lowest year: 23.2%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 29.6%

- Recent gross margin (lower of latest and 3-year median): 29.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.1%

- ROIC including acquisitions, ten-year median: 24.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 38.6%

- FY2018: 36.6%

- FY2019: 31.8%

- FY2020: 39.2%

- FY2021: 36.8%

- FY2022: 36.1%

- FY2023: 29.7%

- FY2024: 26.7%

- FY2025: 23.2%

- LTM to Jun 2026: 19.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.7B

- Net income, five-year total: $2.8B

- Return on incremental invested capital: 35.8%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 2.8 pp

- Working capital / revenue, final three-year average: 21.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.96×

- FY2024: 0.97×

- FY2025: 0.99×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 38.1% vs 26.7%

- Per-share earnings: 3.47 to 11.36 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.7%

- Ordinary dilution, 5-year annual growth: -1.8%

- Market cap gain: $4.1B

- Cumulative retained earnings: $705M

- Diluted shares, 10-year annual growth: -1.7%

- Diluted shares, 5-year annual growth: -1.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 16.0%

- Per-share value change: $7.90

- Per-share value, starting three-year median: $3.47

- Per-share value, ending three-year median: $11.36

- Buybacks concentrated in cheaper years (correlation): 0.82

- Average buyback yield: 2.4%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $822M

- Cumulative net income, 10 years: $4.0B

- ROIC, first three-year median: 38.1%

- ROIC, last three-year median: 26.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.47

- FY2017: $4.51

- FY2018: $5.62

- FY2019: $6.40

- FY2020: $8.97

- FY2021: $16.07

- FY2022: $18.80

- FY2023: $13.42

- FY2024: $11.36

- FY2025: $10.90

### accounting: pass

- Sloan accruals: 1.1%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 6.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.90×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.84×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.7%

- FY2017: 1.5%

- FY2018: 9.3%

- FY2019: -2.5%

- FY2020: -1.8%

- FY2021: 10.4%

- FY2022: 7.4%

- FY2023: -10.6%

- FY2024: -6.7%

- FY2025: 1.1%

## Holders

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Francis Chou](https://gigainvestors.com/ca): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 70% since Dec 2021 · "POOL Q2 Deep Dive: Freight Costs Pressure Margins as Recurring Revenue Holds Steady" (finance.yahoo.com, Jul 2026) · sales +2%

Story as of 2026-10-16T09:59:25.493Z; price observation 2026-10-15.

Price needs cash profits to grow 1.1% a year for ten years

- 2025-05-12: POOL Q1 Earnings Call: Weather and Macro Conditions Pressure Results, Guidance Maintained ([finance.yahoo.com](https://finance.yahoo.com/news/pool-q1-earnings-call-weather-100238438.html))

- 2025-07-24: Pool Corp beats profit estimate on maintenance products demand, shares jump ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/pool-corp-beats-profit-estimate-125521898.html))

- 2026-07-24: POOL Q2 Deep Dive: Freight Costs Pressure Margins as Recurring Revenue Holds Steady ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/pool-q2-deep-dive-freight-133708155.html))

### Sales · FY2025–2026

sales +2%; source https://www.sec.gov/Archives/edgar/data/945841/000119312526074833/pool-20251231.htm; observed 2026-02-26.

- FY2017: $2.8B 

- FY2018: $3.0B 

- FY2019: $3.2B 

- FY2020: $3.9B 

- FY2021: $5.3B 

- FY2022: $6.2B 

- FY2023: $5.5B 

- FY2024: $5.3B 

- FY2025: $5.3B 

- FY2026: $5.4B 

### Gross margin · FY2026

gross margin 29.6%; source https://www.sec.gov/Archives/edgar/data/945841/000119312526074833/pool-20251231.htm; observed 2026-02-26.

- FY2017: 28.9% 

- FY2018: 29.0% 

- FY2019: 28.9% 

- FY2020: 28.7% 

- FY2021: 30.5% 

- FY2022: 31.3% 

- FY2023: 30.0% 

- FY2024: 29.7% 

- FY2025: 29.7% 

- FY2026: 29.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in industrial distribution; annual sales are USD 5.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/945841/000119312526074833/pool-20251231.htm (filed 2026-02-26); FY2025: revenue 5289396000; grossProfit 1572458000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); POOL.US: Pool Corporation distributes swimming pool supplies, equipment, related leisure, irrigation, and landscape maintenance products in the United States and internationally. It offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. The company also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional turf care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, it offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products which consist discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. The company serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.

### Why customers stay

Margins ranged from 29.7% to 30% during 2023–25; it earns 34% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 30%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 29.7%.

- Source: https://www.sec.gov/Archives/edgar/data/945841/000119312526074833/pool-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 29.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2017,0.38590111618225725],[2018,0.36603297437730387],[2019,0.31818971600648555],[2020,0.39173725431887885],[2021,0.36784484678145957],[2022,0.3609953531629243],[2023,0.2972195596063367],[2024,0.26721150446937486],[2025,0.2316229245240867],[2026,0.19714755613033064]]; median 0.33959253458470495. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 31% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/945841/000119312526074833/pool-20251231.htm (filed 2026-02-26); Gross margin observations: [[2021,0.3053661314786056],[2022,0.3128636588638948],[2023,0.2995606860479699]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 346.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 5652175.428462476; upkeep 28699824.571537524; owner earnings 142232175.42846248. Growth capex / owner earnings = 0.03973907740239346.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 6454611.540794253; upkeep 32935388.459205747; owner earnings 184422611.54079425. Growth capex / owner earnings = 0.03499902472298791.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 3665000; upkeep 27915000; owner earnings 234461000. Growth capex / owner earnings = 0.015631597579128298.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 4088000; upkeep 29274000; owner earnings 261575000. Growth capex / owner earnings = 0.015628404855204052.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 21702000; owner earnings 374434000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 7632000; upkeep 30026000; owner earnings 650624000. Growth capex / owner earnings = 0.011730277395239031.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 4594000; upkeep 39025000; owner earnings 748462000. Growth capex / owner earnings = 0.006137920161611411.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 60096000; owner earnings 503273000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 59476000; owner earnings 420330000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/945841/000119312526074833/pool-20251231.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 56334000; owner earnings 401675000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,49749000],[2017,58029000],[2018,69430000],[2019,83772000],[2020,91929000],[2021,119581000],[2022,150624000],[2023,167461000],[2024,179633000],[2025,184916000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/945841/000119312526074833/pool-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 346286000 USD.

### Are managers owners

Insiders own 3.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); POOL.US SharesStats.PercentInsiders = 3.543 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/945841/000119312526074833/pool-20251231.htm (filed 2026-02-26); cretionary spending and elevated financing costs.

We generally pass industry price increases through our supply chain and from time to time may make strategic volume inventory purchases ahead of vendor price increases in order to obtain favorable pricing. Inflationary product cost increases moderated from heightened pandemic levels in 2023, which saw levels at approximately 3% to 4%. In 2024, inflationary product cost increases returned to our historical average of approximately 1% to 2%. Inflationary product cost increases were approximately 2% to 3% in 2025, including a 1% impact from U.S. tariffs enacted during the year. We expect inflationary product cost increases to be approximately 1% to 2% in 2026.

3

Business Strategy and Growth Strategy

Our mission is to provide exceptional value to our customers and suppliers, creating exceptional return to our shareholders, while providing exceptional opportunities to our employees. Our core strategies are as follows:

•

to promote the growth of our industry;

•

to promote the growth of our customers’ businesses; and

•

to continuously strive to operate more effectively.

We promote the growth of our industry through various advertising and promotional programs intended to raise consumer awareness of new and existing product offerings by our vendors, the benefits and affordability of pool ownership, the ease of pool maintenance and the many ways in which a pool and the surrounding spaces may be enjoyed beyond swimming. These programs include digital and media advertising, industry-oriented website development such as www.swimmingpool.com®, www.hottubs.com® and www.nptpool.com®, social media platforms and other digital marketing initiatives, including our all-inclusive Regal and E-Z Clor Pool Care mobile apps that enable at-home water testing. We use these programs and tools to educate consumers and lead prospective pool owners to our customers. We also promote the growth of our industry by offering a growing selection of energy-efficient and environmentally friendly products, which support sustainability and help pool owners save energy, water, time and money. Our environmentally friendly technology products include variable speed pumps, LED pool and hot tub lights and high-efficiency heat pumps. Our Horizon sales centers offer organic fertilizers, organic pesticides, and irrigation and drainage products that reduce water usage and soil erosion, allowing our customers and homeowners to have less of an impact on freshwater reserves.

We promote the growth of our customers’ businesses by offering the broadest product assortment through the largest number of conveniently located market-based sales centers and through comprehensive support programs that include promotional tools and marketing support to help our customers generate increased sales. We provide in-depth training that allows our customers

### What the price says

The price assumes cash profits grow 1.1% yearly over ten years; actual growth was 14.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate -0.008478889921295158. Price 169.12; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.700858034767978 → FY2025 10.772232353572194. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $92.58 per share

- 2016-11: $100.61 per share

- 2016-12: $104.34 per share

- 2017-01: $105.56 per share

- 2017-02: $114.71 per share

- 2017-03: $119.33 per share

- 2017-04: $119.62 per share

- 2017-05: $119.13 per share

- 2017-06: $117.57 per share

- 2017-07: $108.12 per share

- 2017-08: $99.69 per share

- 2017-09: $108.17 per share

- 2017-10: $120.78 per share

- 2017-11: $125.64 per share

- 2017-12: $129.65 per share

- 2018-01: $135.24 per share

- 2018-02: $138.03 per share

- 2018-03: $146.22 per share

- 2018-04: $138.81 per share

- 2018-05: $142.92 per share

- 2018-06: $151.50 per share

- 2018-07: $153.25 per share

- 2018-08: $164.26 per share

- 2018-09: $166.88 per share

- 2018-10: $145.75 per share

- 2018-11: $162.51 per share

- 2018-12: $148.65 per share

- 2019-01: $149.91 per share

- 2019-02: $159.54 per share

- 2019-03: $164.97 per share

- 2019-04: $183.74 per share

- 2019-05: $179.78 per share

- 2019-06: $191.00 per share

- 2019-07: $189.37 per share

- 2019-08: $196.38 per share

- 2019-09: $201.70 per share

- 2019-10: $207.40 per share

- 2019-11: $206.45 per share

- 2019-12: $212.38 per share

- 2020-01: $219.30 per share

- 2020-02: $210.96 per share

- 2020-03: $196.77 per share

- 2020-04: $211.66 per share

- 2020-05: $269.02 per share

- 2020-06: $271.87 per share

- 2020-07: $316.70 per share

- 2020-08: $327.84 per share

- 2020-09: $334.54 per share

- 2020-10: $349.83 per share

- 2020-11: $346.11 per share

- 2020-12: $372.50 per share

- 2021-01: $354.18 per share

- 2021-02: $334.77 per share

- 2021-03: $345.24 per share

- 2021-04: $422.52 per share

- 2021-05: $436.55 per share

- 2021-06: $458.66 per share

- 2021-07: $477.82 per share

- 2021-08: $494.30 per share

- 2021-09: $434.41 per share

- 2021-10: $515.16 per share

- 2021-11: $554.12 per share

- 2021-12: $566.00 per share

- 2022-01: $476.25 per share

- 2022-02: $458.58 per share

- 2022-03: $422.85 per share

- 2022-04: $405.22 per share

- 2022-05: $398.62 per share

- 2022-06: $351.23 per share

- 2022-07: $357.70 per share

- 2022-08: $339.19 per share

- 2022-09: $318.21 per share

- 2022-10: $304.23 per share

- 2022-11: $329.41 per share

- 2022-12: $302.33 per share

- 2023-01: $385.61 per share

- 2023-02: $356.86 per share

- 2023-03: $342.44 per share

- 2023-04: $351.32 per share

- 2023-05: $316.23 per share

- 2023-06: $374.64 per share

- 2023-07: $384.74 per share

- 2023-08: $365.60 per share

- 2023-09: $356.10 per share

- 2023-10: $315.77 per share

- 2023-11: $347.32 per share

- 2023-12: $398.71 per share

- 2024-01: $371.25 per share

- 2024-02: $398.12 per share

- 2024-03: $403.50 per share

- 2024-04: $362.53 per share

- 2024-05: $363.55 per share

- 2024-06: $307.33 per share

- 2024-07: $374.04 per share

- 2024-08: $351.62 per share

- 2024-09: $376.80 per share

- 2024-10: $361.64 per share

- 2024-11: $377.09 per share

- 2024-12: $340.94 per share

- 2025-01: $344.25 per share

- 2025-02: $347.00 per share

- 2025-03: $318.35 per share

- 2025-04: $293.14 per share

- 2025-05: $300.59 per share

- 2025-06: $291.48 per share

- 2025-07: $308.14 per share

- 2025-08: $310.71 per share

- 2025-09: $310.07 per share

- 2025-10: $267.06 per share

- 2025-11: $243.60 per share

- 2025-12: $228.75 per share

- 2026-01: $254.09 per share

- 2026-02: $227.18 per share

- 2026-03: $202.33 per share

- 2026-04: $213.32 per share

- 2026-05: $181.40 per share

- 2026-06: $214.90 per share

- 2026-07: $185.71 per share

- 2026-08: $186.52 per share

- 2026-09: $161.87 per share

- 2026-10: $160.60 per share

## Annual estimated value (USD per share)

- FY2016: low $36.01 per share, central $46.06 per share, high $53.82 per share

- FY2017: low $48.24 per share, central $70.37 per share, high $82.71 per share

- FY2018: low $57.77 per share, central $84.27 per share, high $99.05 per share

- FY2019: low $75.20 per share, central $109.70 per share, high $128.94 per share

- FY2020: low $109.39 per share, central $159.58 per share, high $187.57 per share

- FY2021: low $155.30 per share, central $226.55 per share, high $266.28 per share

- FY2022: low $214.42 per share, central $312.78 per share, high $367.65 per share

- FY2023: low $196.26 per share, central $286.30 per share, high $336.52 per share

- FY2024: low $191.88 per share, central $279.91 per share, high $329.01 per share

- FY2025: low $146.89 per share, central $167.43 per share, high $194.79 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/945841/000119312526074833/pool-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.