May 28, 2025 a 03:30 am
📊 POOL: Dividend Analysis - Pool Corporation
Pool Corporation, a solid player in the consumer discretionary sector, offers investors a moderate dividend yield of 1.55%. With a substantial 22-year history of consistent dividend payments and no recent cuts or suspensions, it represents a reliable income source for long-term investors. However, its market conditions and growth prospects in the swimming pool industry should be closely monitored.
🗣️ Overview
Pool Corporation operates within the consumer discretionary sector, offering a dividend yield of 1.55%. The company's current dividend per share stands at 4.73 USD, supported by a robust 22-year dividend history without any recent cuts.
| Metric | Value |
|---|---|
| Sector | Consumer Discretionary |
| Dividend Yield | 1.55% |
| Current Dividend per Share | 4.73 USD |
| Dividend History | 22 years |
| Last Cut or Suspension | None |
📉 Dividend History
The historical dividend payments underscore Pool Corporation's commitment to shareholder returns. The company's long track record of uninterrupted dividends is a testament to its financial health and discipline.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.45 |
| 2024 | 4.7 |
| 2023 | 4.3 |
| 2022 | 3.8 |
| 2021 | 2.98 |
📈 Dividend Growth
Pool Corporation's dividend growth highlights its ability to enhance shareholder value over time. The dividend growth rates of the past 3 and 5 years demonstrate the company’s commitment to growing returns for its investors.
| Time | Growth |
|---|---|
| 3 years | 16.40% |
| 5 years | 17.48% |
The average dividend growth is 17.48% over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
The payout ratio provides insight into the sustainability of the company's dividend payments relative to its earnings and cash flow. A balanced payout ratio ensures that dividends are sustainable and not overly reliant on one financial metric.
| Key Figure | Ratio |
|---|---|
| EPS-based | 43.29% |
| Free Cash Flow-based | 36.62% |
The EPS payout ratio of 43.29% and the free cash flow ratio of 36.62% indicate a healthy balance, suggesting that Pool Corporation maintains a sustainable dividend payment strategy.
✅ Cashflow & Capital Efficiency
Analyzing free cash flow and earnings yield is crucial for understanding the company's liquidity and ability to fund dividends without hampering growth. Efficient capital allocation is vital for sustaining long-term investor returns.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.63% | 5.37% | 3.70% |
| Earnings Yield | 3.35% | 3.39% | 6.28% |
| CAPEX to Operating Cash Flow | 9.02% | 6.77% | 8.99% |
| Stock-based Compensation to Revenue | 0.36% | 0.35% | 0.24% |
| Free Cash Flow / Operating Cash Flow Ratio | 90.98% | 93.23% | 91.00% |
With a strong free cash flow yield and efficient capital allocation, Pool Corporation maintains solid cash flow stability and capital efficiency, ensuring sustainable growth.
📊 Balance Sheet & Leverage Analysis
A thorough evaluation of leverage ratios and liquidity metrics provides insight into the firm's financial health and risk level. Strong balance sheet fundamentals support growth without exerting excessive leverage pressure.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.99 | 1.04 | 1.34 |
| Debt-to-Assets | 0.38 | 0.40 | 0.47 |
| Debt-to-Capital | 0.50 | 0.51 | 0.57 |
| Net Debt to EBITDA | 1.80 | 1.65 | 1.52 |
| Current Ratio | 2.05 | 2.36 | 2.99 |
| Quick Ratio | 0.52 | 0.58 | 0.63 |
| Financial Leverage | 2.64 | 2.61 | 2.89 |
The company displays stable leverage with manageable debt metrics, supporting its financial stability and liquidity without excessive risk.
🏦 Fundamental Strength & Profitability
Profitability metrics, such as return on equity and margins, reflect the firm's operational efficiency and ability to generate returns on shareholders' capital. Pool Corporation’s strong fundamentals indicate its consistent earnings power.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 34.11% | 39.86% | 60.59% |
| Return on Assets | 12.89% | 15.26% | 20.99% |
| Net Margin | 8.18% | 9.44% | 12.11% |
| EBIT Margin | 11.62% | 13.47% | 16.60% |
| EBITDA Margin | 12.48% | 14.20% | 17.23% |
| Gross Margin | 29.66% | 29.96% | 31.29% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
With high profitability ratios, Pool Corporation maximizes its operational efficiency, delivering robust returns to shareholders.
📜 Price Development
🔍 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 36/40
✅ Rating
Pool Corporation presents a compelling dividend profile with stable payments, moderate growth, and strong financial health. It offers a dependable investment for income-focused investors seeking continuous returns, backed by efficient capital management and stable fiscal strategies. A highly recommended choice for a balanced dividend portfolio.