Latest news with #PinchAPenny
Yahoo
13 hours ago
- Business
- Yahoo
3 Reasons to Buy Pool Corp. Stock Like There's No Tomorrow
Pool Corp. stock has been under pressure amid a slowdown in new pool construction. The company is leveraging its private label brands and Pool360 digital initiatives to drive growth and profitability. Strong company fundamentals and a positive long-term outlook keep shares positioned to rebound. 10 stocks we like better than Pool › Shares of Pool Corp. (NASDAQ: POOL) have been treading water, down about 12% year to date and near their lowest level since 2022. The pool supplies giant is attempting to swim against the current of a challenging economic environment, as shifting consumer spending trends pressure sales and earnings. Nevertheless, the recent sell-off in the stock could represent a great opportunity for investors to jump in and pick up the sunken pieces of this high-quality industry leader at a discount. Here are three reasons Pool Corp. stock is a fantastic addition to your portfolio today. Nothing beats the summer heat like diving into a cool, refreshing pool -- a backyard oasis for countless families and communities. Pool Corp. stands out as the world's largest pool supplies distributor, operating an extensive network of 448 sales centers across North America, Europe, and Australia. The company serves more than 125,000 customers, including professional builders and maintenance companies, as the go-to source for specialized equipment and materials. Pool Corp. also owns the Pinch A Penny retail franchise with approximately 300 locations. While demand for pool supplies has historically been tied to the construction and renovation of residential and commercial facilities, Pool Corp.'s true strength lies in its recurring business model. Recognizing that installed pools require consistent upkeep, including treatment chemicals and irrigation systems, 86% of the company's revenue flows from steady, predictable sales of these types of products. This entrenched leadership, built through deeply rooted customer relationships, positions Pool Corp. for long-term growth in a still-fragmented industry. Pool Corp.'s business model has proven highly successful, allowing it to acquire smaller competitors and consolidate market share. In the past five years, including a pandemic-era pool building boom, total revenue has increased at a 14% compound annual growth rate (CAGR) to $5.3 billion in 2024. Despite a sluggish housing market and slowdown in new pool construction, management is optimistic about growth driven by its expanding private-label business, which offers high-margin, proprietary products, and Pool360, a cutting-edge digital platform that enhances customer access to inventory and streamlines operations. The company's outlook underscores its strong fundamentals and operating resiliency. For 2025, Pool Corp. targets net sales to be "flat to slightly higher" year over year, with a full-year earnings-per-share (EPS) estimate of $11.08 to $11.58, representing a 3% increase at the midpoint compared to 2024. Pool Corp. continues to translate its strong free-cash-flow generation into a generous shareholder-friendly capital allocation strategy. Supported by a solid balance sheet, the company recently hiked its quarterly dividend payment by 4% to $1.25 per share, yielding about 1.3%. Pool Corp. has also upsized its share repurchasing authorization to $600 million, reinforcing its commitment to investors ahead of potentially stronger growth in the long run as operating conditions normalize. Given Pool Corp.'s underlying strengths and industry positioning, the stock commands a valuation premium relative to the broader market. Nevertheless, its current forward price-to-earnings (P/E) ratio of 27 is at a compelling discount to the stock's historical average P/E of closer to 30 going back 10 years. By this measure, Pool Corp. appears undervalued, with the assumption that its softer growth trends are temporary. A scenario where the housing market and pool construction improve or at least stabilize going forward, possibly propelled by subdued inflation and lower interest rates, could be the key for company results to outperform expectations. With the stock down 25% from its 52-week high, I believe now is a great time to start building a position in Pool Corp. shares within a diversified portfolio ahead of a rebound. Before you buy stock in Pool, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pool wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Dan Victor has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 3 Reasons to Buy Pool Corp. Stock Like There's No Tomorrow was originally published by The Motley Fool
Yahoo
21-02-2025
- Business
- Yahoo
Pool Corp (POOL) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic Growth
Full Year Revenue: $5.3 billion, down 4% from 2023. Gross Margin: 29.7% for the year, slightly lower due to weaker product mix. Operating Income: $617 million with an operating margin of 11.6%. Operating Cash Flow: $659 million. Diluted EPS: $11.30 per share, including a $0.23 ASU tax benefit. Fourth Quarter Revenue: $988 million, down 2% year-over-year. Fourth Quarter Gross Margin: 29.4%, a 10 bps improvement from the previous year. Fourth Quarter Operating Income: $60.7 million with an operating margin of 6.1%. Fourth Quarter Diluted EPS: $0.98 per share, including a $0.01 ASU tax benefit. Florida Sales Growth: 12% growth in the fourth quarter. Horizon Net Sales Decline: 6% for the full year and 4% for the fourth quarter. Europe Sales Decline: 9% for the full year and 5% in the fourth quarter. Chemical Sales Growth: 2% for the year and 8% in the fourth quarter. Building Materials Sales Decline: 10% for the full year and 8% in the fourth quarter. Equipment Sales: Flat for the year, up 6% in the fourth quarter. Commercial Pool Product Sales Growth: 9% for both the full year and fourth quarter. Pinch A Penny Retail Sales Growth: 4% for the year and 15% in the fourth quarter. POOL360 Orders: Increased to 12.5% in the fourth quarter from 11% last year. New Locations: 10 new sales centers and 2 acquired, totaling almost 450 sales centers. Pinch A Penny Network: Added 11 new stores, totaling 295 stores. Inventory Reduction: $76 million reduction in inventory. Total Debt Reduction: $103 million, ending at $950 million. Shareholder Returns: $483 million returned through dividends and share repurchases. Warning! GuruFocus has detected 3 Warning Sign with POOL. Release Date: February 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pool Corp (NASDAQ:POOL) reported full-year revenue of $5.3 billion, slightly above their latest guidance, showcasing strong team execution. The company achieved a gross margin of 29.7% for 2024, indicating effective management despite a weaker product mix. POOL360 ecosystem and tools have shown significant traction, contributing to increased private label chemical sales. The company opened 10 new sales centers and added two through acquisitions, expanding their footprint to almost 450 sales centers. Commercial pool product sales grew by 9% for both the full year and the fourth quarter, highlighting successful investments in capabilities and market share growth. New pool construction declined by approximately 15% in 2024, with a 50% drop from the pandemic-driven peak, impacting overall sales. Fourth quarter sales were down 2% year-over-year, reflecting ongoing challenges in construction and renovation activities. Operating income for the fourth quarter decreased to $60.7 million from $79 million in the prior year, with a reduced operating margin of 6.1%. The company faces continued macroeconomic pressures, including high interest rates and inflation, which are expected to impact 2025 sales trends. Sales in Europe declined by 9% for the full year, indicating regional challenges and a need for improvement in international markets. Q: Can you discuss the impact of the POOL360 initiatives on your sales outlook for 2025? A: Peter Arvan, President and CEO, explained that POOL360 is gaining traction and plays a significant role in the maintenance portion of their business. The tools within POOL360, such as the private label chemicals, are expected to drive sales regardless of the construction and renovation environment. The ecosystem makes maintenance companies more efficient and encourages the use of proprietary products, which supports sales growth. Q: How is the Pinch A Penny business performing given the current macroeconomic pressures? A: Peter Arvan noted that there hasn't been a significant shift from professional service companies to DIY. Pinch A Penny's growth is attributed to providing a great customer experience, being well-stocked, and having the right technology. The focus remains on delivering an excellent customer experience to drive growth. Q: Why is the outlook for new pool construction units flat despite high interest rates and declining pool permits? A: Peter Arvan mentioned that dealer activity reports are positive, and while the first half of the year might be weaker, the second half is expected to be stronger. The sentiment from dealers suggests that the situation won't worsen, and they anticipate improvement in the latter part of the year. Q: What are the expectations for gross margin in 2025, considering product mix and competitive pressures? A: Melanie Hart, CFO, stated that the focus will be on supply chain improvements, increased private label sales, and pricing strategies to offset competitive pressures and product mix challenges. These efforts are expected to maintain or improve gross margins. Q: How is the company addressing competitive pressures and customer mix changes? A: Melanie Hart explained that private equity has entered the market, leading to growth in national accounts and consolidations. Pool Corp is focusing on serving these larger customers effectively, which is expected to improve market share and competitive positioning. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
19-02-2025
- Yahoo
Woman charged in check-cooking scheme pleads guilty, but strikes deal
TAMPA, Fla. (WFLA) — The central character in a Better Call Behnken investigation into a multi-county check cooking scheme has pleaded guilty to three related charges. But the victim who started this investigation says she's not happy with the result. Dying to serve: Dozens of recruits have died nationwide while training to become police officers Keelee Jayden Watkins has pleaded guilty to charges of grand theft, uttering forged bills, and criminal use of personal information. This is after our Better Call Behnken investigation exposed two altered checks to a local pinch a penny cashed in Keelee's name. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Court documents show her plea deal includes nearly $2,500 in restitution. But it also includes this: adjudication witheld. That means that even though she pleaded guilty to felonies, she will not be a convicted felon. One of the victims, Phyllis Faber, said she expressed her disappointment to the state attorney's office. 'They asked me what I thought of it and I said that I really didn't agree with it because she had already been slapped on the wrist a couple of times and so it was obvious to me that she wasn't going to stop, had no intention of stopping. So I felt whatever she deserved she should get,' she said. Our Better Call Behnken investigation into the Pinch A Penny checks led to the discovery that the Largo Police Department seized Keelee's car in January 2024, packed with hundreds of personal documents belonging to individuals and businesses, check paper, a printer, a metal grinder, ids, bank cards and checks. Faber said she was hopeful what happened to her would lead to more arrests, related to the contents found in Keelee's car, but that hasn't happened yet. 'I think there were three people in that car, so why aren't they, where are they, who are they?' she asked. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
