| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 71 | 15.9x | 17.8x | Top tier | |
Growth | 16 | 2.2% | 7.1% | Bottom tier | |
Quality | 70 | 15.5% | 4.5% | Top tier | |
Safety | 62 | 2.6x | 2.6x | Around median | |
Capital Return | 64 | 2.91% | 2.12% | Around median | |
Momentum | 9 | -36.2% | 2.9% | Bottom tier | |
Sentiment | 81 | 9 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Pool Corporation operates as a global distributor of swimming pool and outdoor living products, serving a professional base of builders, maintenance providers, and retailers through 455 locations. The company relies on sales of equipment, chemicals, and building materials, in addition to the Horizon irrigation and landscaping business, and benefits from recurring demand generated by maintenance and periodic renovation of the existing pool base. Sales are also supported by the POOL360 platform and proprietary and exclusive products, while the broad branch network, inventory availability, and technical expertise are key elements of its competitive offering.
In the second quarter of fiscal 2026, net sales increased 2% to $1.8 billion, including a 3% pricing contribution. Gross profit reached $541 million, up 1%, but gross margin declined 30 basis points to 29.7% due to higher inbound freight costs and customer mix, while adjusted operating income reached $276 million, with a margin of 15.1%. Adjusted net income increased 1% to $196 million, while reported net income declined 3% to $188 million, and reported diluted earnings per share remained unchanged at $5.17.
The mix in the second quarter of fiscal 2026 was varied: building materials grew 4% and equipment grew 3%, while chemicals declined 2% due to pricing, sales to retail customers fell 1%, and Pinch A Penny franchise sales were flat. Europe achieved 11% growth, and seasonal markets increased 6%, but sales in California, Texas, and Arizona declined by mid-single-digit percentages, and Florida declined 1%, with clear pressure from the Horizon business and weak residential projects. POOL360's share reached a record 18% of sales, reflecting growing use of the digital channel within the distribution network.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $216 within a wide range of $185 to $260, with a consensus rating of “Buy.” The average is approximately 36% below the 52-week high of $336.15, while the highest target also remains below that level, reflecting a reassessment related to weakness in new construction and discretionary spending and pressure from freight and customer mix on margins. The data do not include a valid comparable earnings multiple, so the stock's valuation here is based on the target range, the 52-week range of $172.68–$336.15, and adjusted earnings per share guidance for fiscal 2026 of $10.87–$11.17.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Pool Corporation relies on recurring demand for maintenance of the existing pool base, along with renovation work, new construction, and sales of equipment, chemicals, and building materials. In the second quarter of fiscal 2026, sales grew 2% to $1.8 billion, with a 3% pricing contribution. Building materials increased 4% and equipment grew 3%, while chemicals declined 2% due to pricing. For fiscal 2026, management expects low-single-digit growth with a pricing contribution of approximately 2%.
Gross margin was 29.7% in the second quarter of fiscal 2026, down 30 basis points from the comparable period. Higher inbound freight costs were the largest factor, as the company was unable to fully recover the increase through selling prices. A higher share of sales to larger customers also pressured the mix, while supply chain gains and proprietary products offset part of the impact. Accordingly, management expects fiscal 2026 margin to decline by approximately 30 basis points from the prior year.
POOL360 reached a record 18% of sales in the second quarter of fiscal 2026. During the July 23, 2026 call, management noted continued growth in integrations, including water testing and services. The company uses the platform together with training and digital tools to help professional customers and increase its share of their spending. The priority is to improve returns on existing technology investments instead of making significant new investments in the network.
New pool construction remained weak in the second quarter of fiscal 2026, and U.S. pool permits were down by low-single-digit percentages from the beginning of the year. Pressure was also concentrated in discretionary spending and year-round markets, where sales in California, Texas, and Arizona declined by mid-single-digit percentages and Florida declined 1%. Horizon faced additional pressure from slower residential projects and the timing of certain commercial projects. In contrast, seasonal markets grew 6% and Europe increased 11% during the same quarter.
On July 23, 2026, management reaffirmed the adjusted earnings per share range of $10.87–$11.17 for fiscal 2026. After accounting for $0.21 of one-time CEO transition costs, the reported diluted earnings per share range became $10.66–$10.96. The company also expects interest expense of $49 million to $51 million, a tax rate of approximately 25%, and average shares outstanding of approximately 36.4 million. The guidance assumes low-single-digit revenue growth and an annual decline of approximately 30 basis points in gross margin.
Inventory reached $1.4 billion on June 30, 2026, up 4%, and management said seasonal inventory levels had begun to decline as expected. Total debt reached $1.3 billion, and the leverage ratio was 1.78 times, within the target range of 1.5–2.0 times, while the average effective interest rate declined to 4.3%. The company expects operating cash flow for fiscal 2026 to equal approximately 100% of net income. Through June 30, 2026, it paid $93 million in dividends and repurchased approximately $86 million of shares, with $580 million remaining under the existing authorization.
