Pool Corporation Intrinsic Value Calculation – AIG Reduces Stake in Pool Corporation
June 21, 2023
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Recently, American International Group Inc. (AIG) has reduced its ownership of Pool Corporation ($NASDAQ:POOL) (POOL). POOL is a leading distributor of swimming pool supplies, equipment, and related leisure products in North America. It offers a variety of products, such as cleaning and maintenance equipment, swimming pool chemicals, recreational equipment, outdoor living products, and more. The company is also involved in the sale of chemicals, accessories, and other products through its online store. Prior to AIG’s reduction of its stake in POOL, the company had held a significant portion of the company’s stock. By reducing its ownership, AIG has enabled other investors to gain a piece of the company.
Despite this reduction, AIG is still one of the largest shareholders of POOL Corporation. The move to reduce AIG’s stake in POOL came as part of a larger strategy to diversify its investments. With this new strategy, AIG has been able to spread its investments across various industries, thus providing it with more stable returns. The reduction of its ownership in POOL is only one example of how the company has been able to diversify its portfolio.
Share Price
While the change in AIG’s stake was subtle, it may nonetheless signal a shift in the company’s investor profile and could have an effect on the stock’s performance in the future. Given the marginal increase in stock price on Monday, it appears that investors have taken the news positively. Going forward, it will be interesting to see if POOL CORPORATION can capitalize on this slight increase and sustain its gains in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pool Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 5.97k | 667.8 | 11.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pool Corporation. More…
| Operations | Investing | Financing |
| 796.17 | -59.27 | -745.89 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pool Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.86k | 2.61k | 31.61 |
Key Ratios Snapshot
Some of the financial key ratios for Pool Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.1% | 39.4% | 15.7% |
| FCF Margin | ROE | ROA |
| 12.5% | 47.4% | 15.1% |
Analysis – Pool Corporation Intrinsic Value Calculation
We at GoodWhale have been closely analyzing the fundamentals of POOL CORPORATION and are pleased to report a fair value of around $463.8 for the stock. This was determined by our proprietary Valuation Line, which employs a comprehensive analysis of the company’s financials, market metrics, and industry data. At present, POOL CORPORATION is trading at $327.4, representing an undervaluation of 29.4%. We believe that this discrepancy presents a significant buying opportunity for investors. More…
Peers
The company operates in over 30 countries and serves more than 3,000 retail customers. Pool Corp’s main competitors are Leslies Inc, Dam Sen Water Park Corp, and Tandem Group PLC.
– Leslies Inc ($NASDAQ:LESL)
Leslies Inc is a pool and spa company that has a market cap of 2.38B as of 2022. The company has a Return on Equity of -51.73%. The company has been in business for over 60 years and has a strong brand presence in the pool and spa industry. The company has a diversified product portfolio that includes above-ground pools, inground pools, spas, and pool and spa chemicals. The company operates in North America, Europe, and Asia Pacific.
– Dam Sen Water Park Corp ($HOSE:DSN)
The Tandem Group is a holding company for a number of businesses which are active in the design, development and manufacture of products for the cycling and leisure industries. Its core businesses are CycleOps, a US designer and manufacturer of indoor bike trainers and related cycling accessories, and Infinity Cycles, one of the UK’s leading multi-channel cycle retailers. The company also has a 50% interest in Madison, a leading UK-based cycling and tri-sport distributor and retailer.
The Tandem Group’s market capitalisation is 13.55M as of 2022. The company has a Return on Equity of 9.17%.
The Tandem Group is a holding company for businesses which design, develop, and manufacture products for the cycling and leisure industries. The company has two core businesses: CycleOps, a US designer and manufacturer of indoor bike trainers and related cycling accessories; and Infinity Cycles, one of the UK’s leading multi-channel cycle retailers. The company also has a 50% interest in Madison, a leading UK-based cycling and tri-sport distributor and retailer.
Summary
Pool Corporation is an American company that specializes in the distribution of pool and spa products. Recently, American International Group Inc. (AIG) has reduced their equity stake in Pool Corporation. Investors should be aware of Pool Corporation’s financials, as well as their competition in the industry. They should also consider the company’s long-term prospects and take into account any macroeconomic factors that could affect the stock price.
Additionally, investors should look closely at Pool Corporation’s management team and assess their ability to lead the company into the future. In conclusion, investors should carefully evaluate all these factors before making an investment decision.
