# Latham Group (SWIM.US)

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

Analysis as of: 2026-10-16T07:32:11.791Z. Financial observations: FY2019–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $6.25 per share; close as of 2026-10-15.

Estimated value: low $0.76 per share, central $0.83 per share, high $0.92 per share. Buy at or below the central value $0.83 per share. Valuation as of 2026-10-16T07:32:11.791Z; scenarios are not confidence intervals.

Expected annual return: 3.6% at the stated quote. About 3.6% 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: fail

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

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 8 years

- Years with declining revenue: 2

- Years with a net loss: 4

- Operating margin variation: 1.03×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.08×

- FY2020: 0.10×

- FY2021: -0.06×

- FY2022: 0.04×

- FY2023: 0.03×

- FY2024: 0.04×

- FY2025: 0.06×

- LTM to Jun 2026: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.5%

- ROIC, second-lowest year: 2.6%

- Typical minus recent gross margin: -1.6 pp

- Typical gross margin (annual median): 31.7%

- Recent gross margin (lower of latest and 3-year median): 33.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.3%

- ROIC including acquisitions, ten-year median: 1.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: 9.7%

- FY2020: 8.5%

- FY2021: -6.2%

- FY2022: 3.4%

- FY2023: 2.6%

- FY2024: 3.0%

- FY2025: 5.1%

- LTM to Jun 2026: 3.7%

### economics: fail

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $70M

- Net income, five-year total: -$9.5M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.6 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$5.7M

- FY2023: $5.2M

- FY2024: $6.5M

- FY2025: $37M

- LTM to Jun 2026: $27M

### management: fail

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.5% vs 3.0%

- Per-share earnings: 0.08 to -0.02 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 3.2%

- Diluted shares, 5-year annual growth: 3.2%

- Per-share value change: -$0.10

- Per-share value, starting three-year median: $0.08

- Per-share value, ending three-year median: -$0.02

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 29.4%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 8.5%

- ROIC, last three-year median: 3.0%

Chart: Earnings per share; fiscal year observations.

- FY2019: $0.08

- FY2020: $0.16

- FY2021: -$0.56

- FY2022: -$0.05

- FY2023: -$0.02

- FY2024: -$0.15

- FY2025: $0.09

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -4.9%

- Receivables to sales index (DSRI): 1.34×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 18.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.62×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.04×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -5.4%

- FY2020: -7.3%

- FY2021: -12.1%

- FY2022: -4.4%

- FY2023: -14.2%

- FY2024: -10.0%

- FY2025: -4.9%

## Holders

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

## Price story

Down 76% since Nov 2021 · sales +5.6%

Story as of 2026-10-16T09:59:38.969Z; price observation 2026-10-15.

Price needs cash profits to grow 31.9% a year for ten years

### Sales · FY2025–2026

sales +5.6%; source https://www.sec.gov/Archives/edgar/data/1833197/000183319726000017/swim-20251231.htm; observed 2026-03-04.

- FY2019: $318M 

- FY2020: $403M 

- FY2021: $630M 

- FY2022: $696M 

- FY2023: $566M 

- FY2024: $509M 

- FY2025: $546M 

- FY2026: $577M 

### Gross margin · FY2026

gross margin 33.4%; source https://www.sec.gov/Archives/edgar/data/1833197/000183319726000017/swim-20251231.htm; observed 2026-03-04.

- FY2019: 30.9% 

- FY2020: 35.4% 

- FY2021: 32.4% 

- FY2022: 31.1% 

- FY2023: 27.0% 

- FY2024: 30.2% 

- FY2025: 33.4% 

- FY2026: 33.4% 

## Owner memo

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

### How it makes money

Operates in building products & equipment; annual sales are USD 545.9 million.

- Source: https://www.sec.gov/Archives/edgar/data/1833197/000183319726000017/swim-20251231.htm (filed 2026-03-04); FY2025: revenue 545912000; grossProfit 182088000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 27% to 33.4% during 2023–25; it earns 3.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2023: grossProfit / revenue = 27%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2024: grossProfit / revenue = 30.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1833197/000183319726000017/swim-20251231.htm (filed 2026-03-04); FY2025: grossProfit / revenue = 33.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); 8-year return on capital observations [[2019,0.09712359533188245],[2020,0.08541491477613752],[2021,-0.0619678034819938],[2022,0.034163432438491285],[2023,0.02557614990114313],[2024,0.02952520683633449],[2025,0.05135687679242569],[2026,0.03677645462767561]]; median 0.03546994353308345. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 13.3% of cash earnings; paid dividends in 3 of 7 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2019: growth capex 0; upkeep 8165000; cash acquisitions 20214000; owner earnings 20951000. Growth capex plus acquisitions / owner earnings = 0.9648226814949167.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2020: growth capex 0; upkeep 16264000; cash acquisitions 74736000; owner earnings 25084000. Growth capex plus acquisitions / owner earnings = 2.9794291181629724.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2023: growth capex 0; upkeep 33189000; cash acquisitions 0; owner earnings 5174000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); FY2024: growth capex 0; upkeep 20116000; cash acquisitions 64527000; owner earnings 6470000. Growth capex plus acquisitions / owner earnings = 9.973261205564143.

- Source: https://www.sec.gov/Archives/edgar/data/1833197/000183319726000017/swim-20251231.htm (filed 2026-03-04); FY2025: growth capex 0; upkeep 25385000; cash acquisitions 4934000; owner earnings 37093000. Growth capex plus acquisitions / owner earnings = 0.13301701129593185.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); Dividend observations: [[2019,200000],[2020,582000],[2021,110033000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 6.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-10); SWIM.US SharesStats.PercentInsiders = 6.6610000000000005 percentage points; cache date 2026-10-10.

### What the price says

The price assumes cash profits grow 31.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-04); Ten-year compound average after fade. Initial solved rate 0.45712248932143595. Price 6.25; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2021-04: $26.00 per share

- 2021-05: $31.06 per share

- 2021-06: $31.96 per share

- 2021-07: $27.28 per share

- 2021-08: $21.97 per share

- 2021-09: $16.40 per share

- 2021-10: $15.40 per share

- 2021-11: $25.77 per share

- 2021-12: $25.03 per share

- 2022-01: $16.68 per share

- 2022-02: $17.49 per share

- 2022-03: $13.24 per share

- 2022-04: $12.00 per share

- 2022-05: $9.51 per share

- 2022-06: $6.93 per share

- 2022-07: $5.49 per share

- 2022-08: $5.71 per share

- 2022-09: $3.59 per share

- 2022-10: $4.42 per share

- 2022-11: $3.45 per share

- 2022-12: $3.22 per share

- 2023-01: $4.40 per share

- 2023-02: $3.18 per share

- 2023-03: $2.86 per share

- 2023-04: $2.41 per share

- 2023-05: $3.60 per share

- 2023-06: $3.71 per share

- 2023-07: $3.94 per share

- 2023-08: $3.70 per share

- 2023-09: $2.80 per share

- 2023-10: $2.29 per share

- 2023-11: $2.26 per share

- 2023-12: $2.63 per share

- 2024-01: $2.53 per share

- 2024-02: $3.39 per share

- 2024-03: $3.96 per share

- 2024-04: $2.80 per share

- 2024-05: $3.86 per share

- 2024-06: $3.03 per share

- 2024-07: $3.64 per share

- 2024-08: $6.25 per share

- 2024-09: $6.80 per share

- 2024-10: $6.50 per share

- 2024-11: $6.63 per share

- 2024-12: $6.96 per share

- 2025-01: $7.30 per share

- 2025-02: $5.91 per share

- 2025-03: $6.43 per share

- 2025-04: $5.47 per share

- 2025-05: $5.65 per share

- 2025-06: $6.38 per share

- 2025-07: $6.78 per share

- 2025-08: $8.03 per share

- 2025-09: $7.61 per share

- 2025-10: $7.25 per share

- 2025-11: $7.15 per share

- 2025-12: $6.35 per share

- 2026-01: $6.29 per share

- 2026-02: $6.71 per share

- 2026-03: $5.37 per share

- 2026-04: $6.07 per share

- 2026-05: $5.28 per share

- 2026-06: $6.47 per share

- 2026-07: $5.36 per share

- 2026-08: $7.07 per share

- 2026-09: $6.23 per share

- 2026-10: $6.25 per share

## Annual estimated value (USD per share)

- FY2023: low $1.31 per share, central $1.38 per share, high $1.47 per share

- FY2024: low $0.84 per share, central $0.90 per share, high $0.98 per share

- FY2025: low $0.96 per share, central $1.02 per share, high $1.10 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/1833197/000183319726000017/swim-20251231.htm); period 2025-12-31, filed 2026-03-04.

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.