$366.49
arrow_drop_up0.52%Is POOL a Buy or Sell based on AI Analysis?
Fundamental Analysis
Based on the fundamental analysis of Pool Corp, several key indicators stand out. Firstly, the company has a strong financial position, with a market cap of $15.55B and a solid revenue of $5.54B. This indicates stability and growth potential in the market. Additionally, Pool Corp has a healthy return on equity of 41.07%, showing that the company is efficiently utilizing its shareholders' equity to generate profits. Furthermore, Pool Corp pays dividends, with an annual dividends per share of $4.3, which represents a dividend yield of 1.09%. This makes the company an attractive option for investors looking for steady income. In addition, the company has a low debt-to-equity ratio of 1.04, indicating a manageable level of debt and reducing financial risk. Lastly, the company has a strong gross margin of 29.96%, demonstrating efficiency in managing its production costs and generating profits.
Positive Development
Pool Corp reported a stable operating cash flow and an expanding market reach, indicating a solid financial foundation. The company announced a quarterly cash dividend, which shows that it is committed to rewarding its shareholders and reinforcing its financial stability. The company was selected to participate in the Loop Capital Markets 2024 Investor Conference, which is a positive indicator of investor confidence and potential for growth.
Negative Development
The company's sales are expected to fall again, which could impact its revenue and profitability. The company's net debt to total capital ratio is relatively high, which could indicate financial risk. The company's payout ratio is relatively high, which suggests that it is spending a significant portion of its earnings on dividends, potentially leaving less for reinvestment or debt repayment.
Technical Analysis
Pool Corp (POOL) is currently showing a neutral technical rating, as indicated by the various technical indicators analyzed. The stock has 1 buy indicator (ATR), 4 hold indicators (RSI, MACD, ADX, ROC), and 3 sell indicators (CCI, WILLR, STOCHRSI) for the month. The stock sector for Pool Corp is listed as Industrials, with a 1-year change of 28.55%, outperforming the stock market change of 23.72%. Additionally, the company has a trailing PE ratio of 30.2 and a beta of 1.01, suggesting moderate volatility compared to the benchmark market score of 53. Looking at the technical analysis indicators, Pool Corp has a seven-day price change percent of 4.41% and a one-month price change percent of 9.73%. The stock's fifty-two-week high was at $408.56, while its fifty-two-week low was at $307.77. The company's technical analysis also includes a cumulative multiple of 11.4, indicating a historical trend of growth in stock value. While the current technical rating is neutral, the stock's performance metrics in terms of price changes and volatility suggest potential opportunities for investors to consider in their decision-making process.
Conclusion and recommendation
Based on the data provided, Pool Corp (POOL) appears to be a stable and promising investment opportunity. With a market cap of $15.55 billion, the company operates in the industrials sector and has shown consistent growth over the years. Pool Corp has a solid financial foundation, with a current ratio of 2.36 and a return on equity of 41.07%. The company also pays dividends, with a trailing annual dividend yield of 1.09% and a strong net margin of 9.44%. Furthermore, Pool Corp's technical indicators suggest a favorable outlook, with a neutral technical rating and indicators such as ATR supporting a buy sentiment. The company's stock sector has shown positive growth of 28.55% in the past year, outperforming the stock market's 23.72% growth rate. In conclusion, based on the financial stability, strong performance metrics, and positive technical indicators, Pool Corp appears to be a solid investment choice for investors seeking potential growth and stability in the industrials sector.