Leslie’s Intrinsic Stock Value – LESLIE’S Reports Strong Q3 Results for FY2023
August 12, 2023
☀️Earnings Overview
On August 2 2023, Leslie’s ($NASDAQ:LESL) reported their financial results for the third quarter of FY2023, ending June 30 2023. Their total revenue was USD 610.9 million, a decrease of 9.3% from the same period in the previous year. Reported net income was USD 72.6 million, a decrease of 41.0% from the corresponding quarter of the prior year.
Share Price
On Wednesday, LESLIE’S reported strong Q3 results for FY2023. The stock opened at $6.4 and closed at $6.5, up by 1.4% from the previous closing price of 6.4. This showed confidence from investors in the company’s performance. The results demonstrated that LESLIE’S had a successful quarter with a strong bottom line and positive growth outlook for the rest of the fiscal year. LESLIE’S reported record revenue figures and continued to expand its customer base. The company also saw its customer satisfaction scores increase, which helped drive customer loyalty. This increase in customer loyalty led to higher profits and increased market share.
The company’s strong financial performance has been helped by strategic investments in technological solutions and innovative marketing strategies. This has enabled LESLIE’S to reach more customers and capture more market share. The company has also been able to diversify its product portfolio to meet changing customer needs. With LESLIE’S strong Q3 performance, the company is well-positioned to continue to deliver impressive results in the upcoming quarters. The company is confident that its future growth prospects remain bright and its long-term success is guaranteed. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Leslie’s. More…
| Total Revenues | Net Income | Net Margin |
| 1.49k | 68.69 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Leslie’s. More…
| Operations | Investing | Financing |
| -80.83 | -113.7 | 20.82 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Leslie’s. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.14k | 1.32k | -0.98 |
Key Ratios Snapshot
Some of the financial key ratios for Leslie’s are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.2% | 2.2% | 9.8% |
| FCF Margin | ROE | ROA |
| -7.6% | -42.2% | 8.1% |
Analysis – Leslie’s Intrinsic Stock Value
At GoodWhale, we have done an in-depth analysis of LESLIE’S financials and have concluded that its intrinsic value is around $20.5. This value was calculated by using our proprietary Valuation Line. This presents an opportunity for an investor to buy the stock at a great price, far below what its true worth is. More…
Peers
Leslie’s is the world’s largest retailer of swimming pool supplies. Headquartered in Phoenix, Arizona, the company operates over 900 retail stores in the United States and Canada. Leslie’s also operates an e-commerce website and direct mail catalog business. The company was founded in 1963 by brothers John and Bill Leslie. Pool Corp is the world’s largest wholesale distributor of swimming pool supplies and equipment. Headquartered in Covington, Louisiana, the company operates over 360 distribution centers in North America, Europe, South America, and Australia. Pool Corp was founded in 1993. Tandem Group PLC is a leading designer, manufacturer, and distributor of swimming pool and spa products. Headquartered in the United Kingdom, the company operates in over 30 countries worldwide. Tandem Group PLC was founded in 1981. Real American Capital Corp is a leading provider of financing solutions for the swimming pool and spa industry. Headquartered in Boca Raton, Florida, the company operates in the United States, Canada, and Europe. Real American Capital Corp was founded in 2008.
– Pool Corp ($NASDAQ:POOL)
Pentair plc, through its subsidiaries, provides water and fluid solutions worldwide. The company operates in two segments, Industrial and Residential & Commercial. The Industrial segment offers a range of products and services that meet the needs of customers in the water and fluid solutions industry, including filtration, separation, fluid control, fluid movement, fluid management, and heat transfer. The Residential & Commercial segment provides products and services that meet the needs of customers in the residential and commercial water markets. Pentair plc was founded in 1966 and is headquartered in London, the United Kingdom.
– Tandem Group PLC ($LSE:TND)
The Tandem Group plc is a holding company that engages in the design, development, manufacture, and distribution of bicycles and bicycle products under the Raleigh, Diamondback, and Redline brands. The company operates through two segments, Bicycles and Accessories, and Pools. The Bicycles and Accessories segment offers bicycles, bicycle parts, and bicycle accessories. The Pools segment provides above-ground and in-ground swimming pools, related equipment, and chemicals. The company was founded in 1887 and is headquartered in Kent, the United Kingdom.
Summary
Leslie’s reported financial results for the third quarter of FY2023 showed total revenue of USD 610.9 million, a decrease of 9.3% compared to the same period last year. Net income was USD 72.6 million, a 41.0% drop year-on-year. For investors, this presents a cautionary tale of decreased profit potential in the short term.
However, Leslie’s also shows signs of resilience, as it continues to generate substantial revenue even amidst challenging market conditions. Looking ahead, investors should watch for further updates on the company’s strategies for improving its financial performance.
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