Latham Group Intrinsic Value Calculation – LATHAM GROUP Reports Positive Earnings Results for Second Quarter of FY 2023
August 27, 2023
☀️Earnings Overview
For the second quarter of fiscal year 2023, which ended on June 30, 2023, the LATHAM GROUP ($NASDAQ:SWIM) reported total revenue of USD 177.1 million, representing a decrease of 14.3% compared to the same quarter of the previous year. Net income for the period was USD 5.7 million, showing an improvement of 33.0% year over year.
Price History
On Tuesday, LATHAM GROUP reported positive earnings results for the second quarter of Fiscal Year 2023. The company’s stock opened at $4.2 and closed the day at $4.4, soaring by 16.8% from its previous closing price of 3.8. The company attributed this gain in profits mainly to increased efficiency in its operations and better cost management. The company also saw a substantial increase in sales volume for the quarter, particularly in its primary product lines.
LATHAM GROUP’s CEO stated that the company’s focus on developing new products and expanding its customer base has been particularly beneficial in driving profits during this fiscal year. Overall, the positive earnings results demonstrate that LATHAM GROUP is on track to deliver strong returns for the remainder of the year. The company will continue to focus on cost optimization and efficiency to ensure that it continues to generate strong profits and expand its customer base in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Latham Group. More…
| Total Revenues | Net Income | Net Margin |
| 612.17 | -15.81 | -2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Latham Group. More…
| Operations | Investing | Financing |
| 83.68 | -51.27 | -11.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Latham Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 871.14 | 484.94 | 3.37 |
Key Ratios Snapshot
Some of the financial key ratios for Latham Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 29.8% | 6.1% | 2.5% |
| FCF Margin | ROE | ROA |
| 6.1% | 2.5% | 1.1% |
Analysis – Latham Group Intrinsic Value Calculation
At GoodWhale, we take a deep dive into the financials of companies to provide a comprehensive valuation of stocks. Our analysis of LATHAM GROUP has revealed that its fair value is around $12.1. To arrive at this figure, we have used our proprietary Valuation Line. Currently, LATHAM GROUP is trading at $4.4, meaning it is undervalued by 63.7%. This presents investors with an opportunity to buy the stock at a discount and benefit from an increase in share price as its true value is recognized in the market. More…
Peers
It has a strong competition with GMS Inc, Volution Group PLC, Armstrong Flooring Inc. Latham Group Inc has been able to maintain its position as the top company in the industry by offering a wide range of products, innovative designs, and excellent customer service.
– GMS Inc ($NYSE:GMS)
GMS Inc is a leading global provider of integrated facility solutions. It has a market cap of 1.97B as of 2022 and a return on equity of 26.33%. The company provides a comprehensive range of services to customers in the commercial, industrial, institutional and governmental sectors. Services include janitorial, security, landscaping, maintenance, engineering, construction and project management.
– Volution Group PLC ($LSE:FAN)
Evoqua Water Technologies PLC provides water treatment solutions and services in the United States, Europe, the Middle East, Africa, Asia Pacific, and internationally. The company operates through Americas, Europe, and International segments. It offers a suite of product solutions to support its customers’ full water lifecycle needs, including water intake, desalination, wastewater treatment, water reuse, and industrial water treatment. The company also provides operations, maintenance, and service support for its customers through a global network of service technicians and mobile service assets. In addition, it offers mobile water and wastewater solutions for temporary or emergency needs. The company serves municipal, commercial, and industrial customers. Evoqua Water Technologies PLC was founded in 2008 and is headquartered in Warrendale, Pennsylvania.
Summary
Investors in Latham Group had a good day on the stock market as the company reported their second quarter earnings results for fiscal year 2023. Total revenue was reported at USD 177.1 million, a 14.3% decrease year over year. Despite the decrease in revenue, net income saw an impressive 33.0% increase, reaching USD 5.7 million as compared to the same quarter of the previous year. This strong earnings report indicates that the company is performing well and investors can look forward to future positive financial results.
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