Latham Group Stock Fair Value – LATHAM GROUP Reports Second Quarter FY2023 Earnings Results
August 14, 2023
🌥️Earnings Overview
For the second quarter of FY2023, the LATHAM GROUP ($NASDAQ:SWIM) reported total revenue of USD 177.1 million, representing a 14.3% decrease compared to the same quarter in FY2022. In contrast, net income was up 33.0% year over year, amounting to USD 5.7 million. The quarter ended on June 30 2023.
Share Price
On Tuesday, LATHAM GROUP released their earnings report for the second quarter of FY2023. The report detailed a strong performance in the second quarter, with the company’s stock opening at $4.2 and closing at $4.4, representing a 16.8% increase from the previous closing price of $3.8. The results were well-received by investors and analysts, with many praising the company’s sound management and strategic investments in research and development.
Furthermore, the company reported that they were able to successfully navigate the challenging macroeconomic environment, with their balance sheet remaining strong despite the downturn. Overall, this strong performance in the second quarter of FY2023 has solidified LATHAM GROUP’s position as one of the leading players in the industry and has given investors further confidence that the company is well-positioned to take advantage of future growth opportunities. 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 Stock Fair Value
GoodWhale conducted an analysis of the wellbeing of LATHAM GROUP, and our proprietary Valuation Line gave us an estimated fair value of around $12.3 per stock. It is apparent that the stock is currently trading at $4.4, which is undervalued by 64.1%. Our research concluded that LATHAM GROUP has strong potential and potential gains for investors. More…
Peers
It has a strong competition with GMS Inc, Volution Group PLC, Armstrong Flooring Inc. Latham Group Inc has been able to maintain its position as the top company in the industry by offering a wide range of products, innovative designs, and excellent customer service.
– GMS Inc ($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 the LATHAM GROUP saw mixed results in the company’s second quarter of FY2023. Total revenue decreased 14.3% year-over-year, yet net income increased 33.0% to USD 5.7 million. Despite the revenue dip, the stock price moved up on the news, suggesting that investors are encouraged by the growth in net income. Going forward, the LATHAM GROUP will need to focus on continuing to drive up net income in order to sustain its stock price movements.
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