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AGING Analysis Report
Aug 3, 2026
20 days ago · 100% complete
NOT DEPENDABLE This report predates a filing — its financial basis has been replaced.
Report generated: Aug 3, 2026 · Filing on record since: Aug 19, 2026 · 15 days after
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Pool Corporation (POOL) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-23): Designation Low · Gem Score -19 (−100…+100 Quality+Value blend) · Quality 23 · Value -53 · Sentiment -57 (timing only, not weighted) · Composite fair value $202.52 vs $191.17 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Pool Corporation

POOL NASDAQ
Industrials · Industrial Distribution
Covington, LA 70433-5001, United States poolcorp.com Updated Aug 3, 11:33am
Price
$191.70
Market Cap
$6.8B
Employees
6,000
Beta
1.05
Avg Volume
1,124,283
Last Dividend
$5.10
CEO
Mr. John B. Watwood

Pool Corporation is a wholesale distributor specializing in swimming pool supplies, equipment, and related outdoor living products. The company provides non-discretionary pool maintenance essentials such as chemicals, replacement parts, and cleaning systems, alongside a wide range of equipment including pumps, filters, heaters, lights, and packaged pool kits for new construction and renovation. Pool Corporation also supplies complementary irrigation and landscape products, outdoor lighting, grills, and outdoor kitchen components, serving the broader backyard and outdoor living market. Its customer base consists primarily of professional pool builders, remodelers, independent retailers, and service companies, making it a key intermediary between manufacturers and the fragmented end-market. Headquartered in Covington, Louisiana and founded in 1980, Pool Corporation operates hundreds of sales centers across North America, Europe, and Australia, giving it a significant footprint in residential and commercial pool and outdoor environments. Through its scale, product breadth, and distribution network, the company plays a central role in supporting ongoing maintenance and refurbishment activity in the pool and outdoor living industry.

Runs with full report Generated: Aug 3, 2026 11:49am
Price Overview
Price at report time
$190.90
as of Aug 3, 12:09pm (20d ago)
Change · Aug 3
+5.19 (+2.79%)
Day Range
$187.51 – $194.41
52-Week Range
$172.68 – $336.15
50-Day MA
$195.96
200-Day MA
$224.99
Volume
52,664.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 20d).
Share Structure
Outstanding 36,340,877.00
Float 35,057,919.00
Free Float 96.5%
High free float — 96.5% of shares trade freely, ~3.5% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 3, 2026 12:09pm (20d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 3, 2026 12:09pm (20d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 3, 2026 11:46am
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
17.67
Stock Price: $191.70
EPS (Diluted): 10.85
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
6.03
Stock Price: $191.70
Total Equity: $1.19B
Shares: 37,288,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
12.62
Market Cap: $6.77B
Total Debt: $1.20B
Cash: $104.96M
EBITDA: $622.88M
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$7.9B
Market Cap: $6.77B
Total Debt: $1.20B
Cash: $104.96M
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
29.7%
Gross Profit: $1.57B
Revenue: $5.29B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
11.0%
Operating Income: $580.20M
Revenue: $5.29B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
7.7%
Net Income: $406.40M
Revenue: $5.29B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
34.3%
Net Income: $406.40M
Total Equity: $1.19B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
19.4%
Operating Income: $580.20M
Tax Rate: 23.8%
Equity: $1.19B
Total Debt: $1.20B
Cash: $104.96M
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
2.24
Current Assets: $1.97B
Current Liabilities: $880.29M
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
1.01
Short-Term Debt: $13.03M
Long-Term Debt: $1.19B
Total Debt: $1.20B
Total Equity: $1.19B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$141.85
Revenue: $5.29B
Shares: 37,288,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$31.79
Total Equity: $1.19B
Shares: 37,288,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$8.30
Operating CF: $365.85M
CapEx: -$56.33M
Shares: 37,288,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
2.7%
Last Dividend: $5.10
Stock Price: $191.70
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
45.5%
Dividends Paid: -$184.92M
Net Income: $406.40M
Industry Benchmarks
Last run: Aug 3, 2026 11:46am
Compares POOL against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 3, 2026 12:09pm (20d ago)
Metric 2021 2022 2023 2024 2025
Revenue $5.3B $6.2B $5.5B $5.3B $5.3B
Cost of Revenue $3.7B $4.2B $3.9B $3.7B $3.7B
Gross Profit $1.6B $1.9B $1.7B $1.6B $1.6B
Operating Expenses $784.3M $907.6M $913.5M $958.1M $992.3M
Operating Income $832.8M $1.0B $746.6M $617.2M $580.2M
Net Income $650.6M $748.5M $523.2M $434.3M $406.4M
EBITDA $861.1M $1.1B $778.2M $654.0M $622.9M
EPS $16.21 $18.89 $13.45 $11.37 $10.89
EPS (Diluted) $15.97 $18.70 $13.35 $11.30 $10.85
Balance Sheet (Annual)
Last updated: Aug 3, 2026 11:33am (20d ago)
Metric 2021 2022 2023 2024 2025
Cash & Equivalents $24.3M $45.6M $66.5M $77.9M $105.0M
Total Current Assets $1.8B $2.0B $1.8B $1.7B $2.0B
Total Assets $3.2B $3.6B $3.4B $3.4B $3.6B
Current Liabilities $744.4M $675.7M $770.8M $844.2M $880.3M
Long-Term Debt $1.2B $1.4B $1.0B $900.9M $1.2B
Total Liabilities $2.2B $2.3B $2.1B $2.1B $2.4B
Total Equity $1.1B $1.2B $1.3B $1.3B $1.2B
Retained Earnings $526.9M $653.5M $700.0M $648.5M $520.7M
Cash Flow (Annual)
Last updated: Aug 3, 2026 12:09pm (20d ago)
Metric 2021 2022 2023 2024 2025
Operating Cash Flow $313.5M $484.9M $888.2M $659.2M $365.9M
Capital Expenditure -$37.7M -$43.6M -$60.1M -$59.5M -$56.3M
Free Cash Flow $275.8M $441.2M $828.1M $599.7M $309.5M
Acquisitions (net) -$812.0M -$9.3M -$11.5M -$4.7M -$10.8M
Net Debt Issued / (Repaid)
Dividends Paid -$119.6M -$150.6M -$167.5M -$179.6M -$184.9M
Stock Buybacks -$138.0M -$471.2M -$306.4M -$306.3M -$346.3M
Net Change in Cash -$9.8M $21.3M $20.9M $11.3M $27.1M
Growth Trends (YoY %)
Last updated: Aug 3, 2026 12:09pm (20d ago)
Metric 2022 2023 2024 2025
Revenue Growth +16.7% -10.3% -4.2% -0.4%
Gross Profit Growth +19.6% -14.1% -5.1% -0.2%
Operating Income Growth +23.2% -27.2% -17.3% -6.0%
Net Income Growth +15.0% -30.1% -17.0% -6.4%
EBITDA Growth +22.7% -26.3% -16.0% -4.8%
Dividend History (Last 20)
Last updated: Aug 3, 2026 11:34am (20d ago)
Date Dividend Declaration Record Payment
2026-08-13 $1.30
2026-05-14 $1.30
2026-03-12 $1.25
2025-11-12 $1.25
2025-08-14 $1.25
2025-05-15 $1.25
2025-03-12 $1.20
2024-11-13 $1.20
2024-08-15 $1.20
2024-05-15 $1.20
2024-03-13 $1.10
2023-11-07 $1.10
2023-08-09 $1.10
2023-05-16 $1.10
2023-03-14 $1.00
2022-11-09 $1.00
2022-08-10 $1.00
2022-05-13 $1.00
2022-03-09 $0.80
2021-11-09 $0.80
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable 18 computed · 6 not applicable
Risk : Reward — if the last quarter repeats
Live · as of 2026-08-19 10:57
-0.6 : 1 recovery upside vs repeat-quarter downside
Even the bull case prices 34% below today — the ratio here measures the model-vs-market gap, not payoff odds. Another quarter like the worst recent one costs 58%.
CaseGrowthMarginFair valuevs price ($191.17)
Bull — recovery +4% 9.2% $125.97 -34%
Base — stabilizes +3% 8.0% $106.43 -44%
Bear — keeps slipping +1% 6.8% $88.41 -54%
Stress — last quarter repeats -1% 6.5% $80.31 -58%
The next quarters keep the trajectory of the worst recent matched quarter (ending 2025-12-31) — growth stays at -0.5% and margins bend by the same profit-vs-revenue ratio (×0.86). Stress is a trajectory, not a prediction — it answers "what if the ship's current heading simply continues," which history says is the case to respect.
Why this is appearing: this company files quarterly, so its recent trajectory could be measured rather than assumed — the engine matched Mar 2026 against the same quarter one year earlier and found revenue +6.2% · operating income +6.5% · net income -0.6% year-over-year. That measured heading is what the stress case extends forward. Of those, the stress case extends the worst matched quarter — the one ending Dec 31, 2025 (revenue -0.5%, operating income -14.2% YoY) — not the average. Data measured through Mar 31, 2026 — this card recalculates automatically when the next quarterly filing is ingested. Companies without quarterly filings (many foreign listings) never show this card: with no measured trajectory, there is nothing honest to repeat.
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for POOL — it's generated by the pipeline (market-narrative step).
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-03 12:07:05
Verdict I partially dissent from the Synthesis "fully priced" and strongly dissent from Market Forces' "hemorrhaging/deteriorating" framing. This is a high-quality mature-earner (ROIC 19%, ROE 34%, capital-light, dividend-paying, insider-buying) trading at trough-cycle earnings. Fair value on normalized midcycle earnings is closer to $200-220, not $163; the DCF is anchored to depressed FCF. But it's not a fat pitch either — the multiple isn't cheap on absolute terms, leverage is meaningful, and there's no visible catalyst for the housing/new-pool cycle to inflect in 2026. I'd call it modestly undervalued for patient capital with the insider buying as the strongest single signal in the file. A starter position with room to add on further weakness ($170s) makes sense; table-pounding conviction doesn't.

Looking at the raw numbers first: POOL's quarterly cadence is remarkably stable year-over-year — Q2'25 rev $1.78B vs Q2'24 $1.77B, Q3'25 $1.45B vs $1.43B, Q1'26 $1.14B vs Q1'25 $1.07B (+6.5%). That's not "deteriorating" — that's stabilization with a tentative Q1'26 uptick after two years of grinding down from the 2022 sugar-high ($6.18B rev, $748M NI). Net income at $406M in 2025 vs $434M in 2024 is a 6.4% decline, not a collapse. Gross margin held at 29.7%, operating margin 11%, ROE 34%, ROIC 19%. This is a franchise absorbing a cyclical trough while still earning bank-crushing returns on capital. FCF of $309M against a $6.77B cap = 4.6% FCF yield, and capex is only $56M — this is a capital-light distributor, not a cash incinerator. The "FCF CAGR -38.9%" figure is misleading because it's anchored to a 2021-2022 stimulus peak; normalized FCF here is fine.

Where I diverge from the prior models: the Market Forces call of "deteriorating…hemorrhaging cash…losing market share" is factually wrong on this data. POOL generated $366M in operating cash flow last year, grew Q1'26 revenue +6.5% YoY, and there is zero evidence of share loss in the file — that's an assertion, not a datapoint. The Synthesis "fully priced" verdict at $163 fair value implies a ~15% downside, but that DCF is presumably capitalizing trough earnings; if you normalize NI to a midcycle $500-550M (below 2023's $523M and well below 2022), you get $9-10 midcycle EPS against $191 = 19-21x normalized, which is reasonable for a 30%+ ROE consolidator with a 2.7% dividend. The Pre-Flight read that this is a "traditional mature cyclical at trough earnings with modest recovery priced in" is the most honest of the bunch. The insider buying is the tell that models are underweighting: multiple open-market purchases in May 2026 (10,000 + 10,000 + 1,000 + 525 + 464 shares) is not routine — insiders don't buy 20k+ shares into a "deteriorating" business at $191 unless they see the trough.

The contrarian bear case that deserves airtime: POOL is 2.5x levered debt-to-equity ($1.20B debt / $1.19B equity, though D/E of 1.01 on canonical), and if rates stay elevated with housing turnover suppressed for another 2-3 years, the "trough" earnings could persist longer than a normal cycle. The 2022 peak sucked forward years of demand — installed-base refresh doesn't fully offset the new-construction air pocket. At 17.7x trailing and 12.6x EV/EBITDA on already-depressed EBITDA, you're not getting a screaming bargain. Also worth noting: revenue has printed essentially flat YoY for six straight quarters — "stabilization" and "no recovery" look identical until they don't, and there's no catalyst in this data suggesting the inflection is imminent. The Q4 2025 print ($982M rev, 3.2% margin) was the weakest seasonal quarter in the series.

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-03 12:07:24
Verdict Fairly valued to slightly overvalued at $191.7 — durable franchise, but I need clear margin recovery or a pullback toward $160-$170 to get constructive.

What stands out is that the business has likely moved through the sharpest part of the post-2022 reset, but the equity is not obviously cheap even after that pain. Revenue peaked at $6.18B in 2022, fell to $5.54B in 2023, then $5.31B in 2024 and $5.29B in 2025. That looks ugly in a growth chart, yet the more important read is that the decline has largely stabilized: 2025 revenue was down just 0.4% versus 2024, and Q1 2026 actually grew to $1.14B from $1.07B, about 6.5% year over year. The issue is that earnings have not stabilized nearly as well as sales. Net income fell from $748.5M in 2022 to $523.2M, then $434.3M, then $406.4M in 2025, and Q1 2026 was still slightly down at $53.2M versus $53.5M despite the revenue uptick. That says recovery is currently more volume-led than profit-led, with margin pressure still lingering.

The margin structure tells the real story. Gross profit was $1.93B in 2022, but only $1.57B in 2025, and annual operating margin compressed from 16.7% in 2022 to 13.5% in 2023, 11.6% in 2024, and 11.0% in 2025. Net margin similarly slid from 12.1% to 7.7% over that span. For a distributor, that is a meaningful reset, not a rounding error. The quarterly pattern shows a business that still has strong seasonality and decent discipline—Q2 and Q3 margins remain healthy at 10.9% and 8.8% in both 2024 and 2025—but there is no evidence yet of a rebound in profitability. This matters because at $6.77B market cap, investors are paying about 16.7x 2025 earnings and roughly 21.9x 2025 free cash flow of $309.5M. That is not distressed pricing for a company with three straight years of earnings contraction and negative multi-year FCF CAGR. The market is giving POOL credit for durability, and durability is deserved; it is not giving it away.

Still, I think some of the more bearish framing overstates the damage. Calling this a business “hemorrhaging cash” is simply wrong on the numbers. It produced $365.9M of operating cash flow and $309.5M of free cash flow in 2025, with only $56.3M of capex. The balance sheet is not pristine but is manageable: $1.20B of debt against $105M of cash and $1.19B of equity, with a current ratio above 2.2. Returns remain very good even after the downturn, with ROIC near 19% and ROE above 34%, though the latter is helped by leverage and a relatively thin equity base. This is still a high-quality distributor with an installed-base tailwind from existing pools that require maintenance regardless of new construction cycles. The fact that Q1 2026 revenue turned positive while margins merely held suggests the next leg, if it comes, is operational leverage rather than heroic assumptions about demand. The insider purchases in May 2026 are also hard to ignore: multiple open-market buys including two 10,000-share transactions are a more meaningful signal than routine awards.

The best case against my caution is straightforward: the stock may already be sitting near trough earnings, and trough multiples on a still-excellent franchise can look deceptively full right before profits inflect upward. If revenue has bottomed around $5.3B and operating margin only recovers from 11.0% to, say, 12.5%, operating income would rise materially without requiring a return to 2022 demand conditions. On $5.5B of revenue, a 12.5% operating margin would imply roughly $688M of operating income versus $580M in 2025, which could push earnings power well above $11 per share equivalent and make a $191 stock look more reasonable. The bull would also point out that gross margin has held close to 29.7% despite the downturn, which suggests the core competitive position is intact and the real pressure is in SG&A deleverage rather than price erosion or structural share loss. If housing and backyard discretionary spending merely stop getting worse, POOL can snap back faster than the trailing numbers imply.

What would change my mind is evidence that earnings have truly turned, not just sales. I would want to see at least two consecutive quarters of year-over-year revenue growth paired with net margin improvement, especially in the important Q2 and Q3 periods. If Q2 2026 can exceed the prior year’s $1.78B revenue and lift net income above $194M, that would be a genuine signal that the cycle is turning and the current multiple is fair-to-cheap. Conversely, if revenue growth in 2026 is positive but net income stays flat or down—repeating Q1’s pattern—then the market is still overpaying for a “recovery” that is not reaching the bottom line. At $191.7, I see a solid business, but not a bargain; I’d get interested closer to the mid-$160s unless margin recovery becomes visible in the next two quarters.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-03 12:08:10
Verdict Fairly valued near $190–195 on trough-ish earnings; modest upside if 2026 peak season stabilizes, limited margin of safety if housing weakens further

The numbers describe a classic post-boom cyclical reset that has largely completed its top-line compression but has not yet found an earnings floor with conviction. Revenue has stabilized near $5.3B after the multi-year slide from the $6.18B 2022 peak—2025 finished essentially flat at $5.29B versus $5.31B, and the first quarter of 2026 actually printed a modest year-over-year lift to $1.14B from $1.07B. That is not growth; it is the absence of further decline. Net income, however, continues to grind lower: $406M in 2025 versus $434M the prior year and $748M at the peak, with operating margin compressed to 11.0% from the mid-teens. Gross margin has held remarkably steady near 29.7%, which tells you the core distribution economics and pricing power on chemicals and parts remain intact even as volume and mix deteriorated. Free cash flow of $310M on only $56M of capex is still solid, supporting the 2.7% dividend at a 46% payout, and ROIC of 19.4% plus ROE of 34% confirm this remains a high-return capital allocator rather than a broken business. At 17.7× trailing earnings and 12.6× EV/EBITDA with the stock already 43% off its highs, the market is applying a cyclical discount but not a distress multiple.

What stands out most is the divergence between the still-negative momentum statistics (earnings CAGR –12%, FCF CAGR –39%) and the early signs of stabilization plus aggressive insider buying. Multiple open-market purchases in May 2026 totaling well over 20,000 shares are not routine option exercises; they are real capital at risk near current levels. Net debt of roughly $1.1B against $310M of FCF is manageable (mid-3×), and the current ratio above 2.2 leaves liquidity comfortable. The quantitative models’ signal-adjusted fair value of $163 therefore looks overly punitive: it appears to extrapolate continued deterioration that the most recent quarterly print and the balance-sheet durability do not yet support. Composite fair value near $190 sits almost exactly on the $191.70 tape, which is consistent with a business that has stopped getting worse but has not started getting better.

The strongest counter-argument is straightforward and data-rich. Revenue and earnings have now declined for three consecutive years, summer peak quarters in 2025 were only flat versus 2024, and FCF has collapsed from prior-cycle levels. A PE of 17.7× on what may still be mid-trough rather than true-trough earnings is not obviously cheap for an industrial distributor facing housing and discretionary-spending headwinds; if the installed-base maintenance story proves less non-discretionary than management claims, or if another down-leg in new-pool construction hits the 2026 peak season, both the multiple and the earnings base can compress further. Price-to-book of 6.0× leaves little margin of safety if ROE mean-reverts, and the debt load, while serviceable, limits strategic flexibility if cash generation worsens. Those points justify the models’ “fully priced” and “market headwinds” labels; I simply weigh the gross-margin resilience, insider accumulation, and Q1 stabilization more heavily than pure backward-looking CAGRs.

I would flip to a clear undervalued stance on two consecutive quarters of positive revenue growth accompanied by operating-margin expansion back above 12%, or to overvalued if the 2026 peak season (June and September quarters) prints year-over-year revenue declines greater than 3% with further NI compression. Until then the stock screens as roughly fairly valued with a mild positive skew from insider behavior and trough-like fundamentals.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 6.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 8.0
undervalued · conviction 3/5 · Δ +2.0 vs panel · self: 6.0
GPT gpt-5.4 5.0
fairly valued · conviction 3/5 · Δ -1.0 vs panel · self: 4.0
Grok grok-4.5 5.0
fairly valued · conviction 3/5 · Δ -1.0 vs panel · self: 6.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-03 13:53:50
Delvantic - Cairn AI
Quality - wait for a dip 7/10
Quality distributor at a full price into a headwind tape - the setup is 'wait and stalk,' not 'buy today.'
The cruxWhether the pool-build cycle troughs in 2026 or grinds lower for another year - that single variable decides if $191 is a fair entry or a slow bleed to $160.
Forensic checks Derived mechanically from POOL's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionShare Count Shrinking
Earnings QualityGood Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+23
Strong
edge √Σ 121 · risk √Σ 98 · conf 8/10

POOL is a mature, cash-generative distributor showing textbook post-COVID normalization: revenue peaked at $6.18B in 2022 and has drifted to $5.29B in 2025, with operating margin compressing from 16.6% to 11.0% and net income falling from $748M to $406M. Gross margin has held remarkably steady in the 29.7-30% band across the downturn, suggesting pricing discipline and channel position are intact even as volume/mix pressure hits opex leverage. FCF remains solidly positive across every year ($309M-$828M range) and OCF/NI of 1.05x plus accruals of just 0.3% of assets confirm the earnings are real cash. Capital allocation is a clear strength: diluted shares fell from 40.5M to 37.3M (roughly -2% CAGR), SBC is a trivial 0.4% of revenue, and buybacks run at ~17x SBC — per-share value is being concentrated, not leaked. Beneish M of -2.34 and Altman Z of 4.21 corroborate a clean, safe accounting profile. The one real caveat is the balance sheet: net cash is -$1.09B against only $105M liquid, so the company is levered and FCF of ~$309M in 2025 is doing double duty funding buybacks and servicing debt. Insider behavior is a genuine positive - five open-market P-purchases totaling ~$4M in recent weeks, including sizable buys by Perez de la Mesa ($3.7M across two tranches), with zero sales - insiders are stepping in during the earnings drawdown.

Strengths 4
m70
Clean earnings quality
OCF/NI 1.05x, accruals 0.3% of assets, Beneish M -2.34, Altman Z 4.21 - mechanical checks all clear. Reported profits are backed by cash.
m65
Share count shrinking with negligible SBC
Diluted shares fell from 40.5M (2021) to 37.3M (2025), -2% CAGR. SBC only 0.4% of revenue, buybacks 17x SBC - per-share value compounding through the cycle.
m55
Insider open-market buying
Five P-purchases totaling ~$4.0M in recent weeks (Perez de la Mesa $3.7M, Stokely, Whalen, Hope), zero sales. Directors and former CEO stepping in during the earnings trough.
m50
Gross margin resilience
GM held at 29.7-30% from 2021 through 2025 despite revenue falling ~14% from peak - pricing/channel position appears defensible.
Concerns 4
m60
Operating deleveraging
Operating margin fell from 16.6% (2022) to 11.0% (2025); net income nearly halved from $748M to $406M. Fixed-cost base is not scaling down with revenue.
m55
Net debt of $1.09B vs $105M cash
Balance sheet is a constraint, not a cushion. FCF of $309M in 2025 (down from $828M in 2023) has to cover buybacks, dividends, and debt service simultaneously.
m45
Revenue in multi-year contraction
Revenue down four years running from $6.18B to $5.29B. Whether this is cyclical normalization or structural demand shift is not answerable from the numbers alone.
m30
FCF trajectory softening
FCF fell from $828M (2023) to $599M (2024) to $309M (2025) - a sharper deceleration than net income, suggesting working capital tailwinds have exhausted.
This is a high-quality distributor caught mid-cyclical downturn - not a broken business. The tell is that gross margin has not moved through a 14% revenue drawdown, which is what you want to see from a company with real channel power. What I do not love is the operating deleverage and the fact that net debt is now ~3.5x current FCF, which limits optionality if the pool-build cycle stays soft for another year or two. The insider buying is not token - Perez de la Mesa put $3.7M of his own money in, and directors joined him, which is meaningful signal that insiders think this is a trough not a trend. I would grade the business itself as Strong: durable, well-run, clean books, disciplined capital return - but the combination of leverage and a genuinely uncertain revenue trajectory keeps it out of fortress territory.
Verify before trusting this (5)
  • Debt maturity ladder and covenants on the ~$1.1B net debt position
  • Whether the operating margin compression is mix/opex investment or structural (freight, wages, competitive)
  • Customer concentration and exposure to new-pool construction vs recurring maintenance demand
  • Segment/geographic detail on the revenue decline - is Horizon (irrigation) offsetting or dragging
  • Terms and remaining authorization on the buyback program given lower FCF run-rate
Valuation / Mispricing
-53
Rich
edge √Σ 29 · risk √Σ 89 · conf 7/10
Price $191 vs deserved ~$170-180, roughly 6-15% too high - modestly rich, not egregiously so. attractive below $160.00

The price sits essentially on top of the composite fair value ($190.02) but ~17% above the signal-adjusted FV of $163.43 and ~45% above the EPV floor of $131.78. The DCF ($182) says modest overvaluation; only the anchored-PE ($264) argues for cheapness, and that method is almost certainly extrapolating peak-cycle multiples onto trough earnings - I discount it. Net-net, deserved value clusters in the $160-185 range, and $191 pays full retail for a quality distributor mid-downcycle.

Cheap signals 2
m25
Quality supports deserved value
Gross margin held flat through a 14% revenue drawdown - genuine channel power argues deserved value sits closer to DCF ($182) than EPV ($132), softening the overvaluation call.
m15
Clean earnings, no haircut needed
Good earnings-quality signal means no downward adjustment to deserved value from accruals or one-offs.
Rich / priced-in 4
m55
Price above signal-adjusted FV
Signal-adjusted FV of $163.43 implies -15% from $191.17. The e2e itself labels this 'Fully Priced.'
m45
Well above EPV floor
EPV floor of $131.78 sits ~45% below spot, meaning current price bakes in a full cyclical recovery rather than pricing off normalized earnings power.
m40
Anchored-PE is a runaway input
The $264 anchored-PE tag applies peak multiples to depressed earnings in a cyclical business - I treat it as unreliable and lean on DCF/EPV, which both say fair-to-rich.
m35
Leverage limits margin of safety
Net debt ~3.5x current FCF (per quality lens) means operating deleverage risk is not fully compensated at 17% premium to DCF.
Fully valued. The composite FV lands right on the price, but that's flattered by an anchored-PE method I don't trust in a cyclical - the more honest DCF and EPV read says $132-182, and $191 is at the top of that. I'd want it in the $155-165 range before the quality of the franchise plus a cyclical trough setup would give me a real margin of safety. Today it's a hold-if-you-own-it, not a buy.
Verify before trusting this (4)
  • Management commentary on new-pool build activity and 2025 unit volumes
  • Discretionary vs non-discretionary revenue mix disclosure
  • Net debt trajectory and buyback pace at current price
  • Whether gross margin holds if volume declines another leg
General Sentiment
-57
Headwind
tail √Σ 39 · head √Σ 104 · conf 6/10

The macro tape is nominally neutral-to-slightly-positive, but the composition matters for POOL: 10y at 4.68% and a market PE of 26.9 press directly on housing-adjacent distributors, and POOL's beta of 1.05 gives it no defensive buffer. The narrative here is a moderate-intensity, moderate-durability steady-compounder story with low cult coefficient - meaning there is no fervent buyer base to defend the stock when the story wobbles, and the story IS wobbling as new-pool construction slows and the bear case (mature cycle, DIY erosion, priced for perfection) gains airtime. Momentum is decisively negative: -2.3% CAGR, rising leverage (D/E 0.80 to 1.01), and softening cash generation. That combination tends to invite analyst target trims and de-rating pressure even without a fresh catalyst, because the compounder narrative depends on visible, uninterrupted execution - and the tape currently shows the opposite. There is no euphoric flow or thematic bid (no AI, no reopening, no rate-cut trade specifically pulling this name up), so sentiment is left leaning on a story that is quietly fading rather than breaking. Net: a real crosswind, not a rout - the kind of persistent drip that keeps a name capped rather than crashed.

Tailwinds 2
m30
Neutral-to-positive regime prevents a rout
Regime score +22 and VIX 16 mean there is no risk-off panic forcing indiscriminate selling. The headwind is a drip, not a flush.
m25
Non-discretionary maintenance floor in the story
The bull narrative's chemicals/maintenance angle gives sentiment a floor - defensive-ish framing keeps some quality-tilted flows engaged even as growth story softens.
Headwinds 4
m55
Housing-rate sensitivity lands on this name
With 10y at 4.68% and the tape penalizing housing-adjacent cyclicals, POOL's new-construction narrative gets marked down even in a neutral market. Beta 1.05 offers no shelter.
m60
Compounder story quietly fading
Steady-compounder narratives require uninterrupted execution to hold their premium. Moderate intensity, moderate durability, low cult means no fervent buyers to defend the stock as the growth cadence slips.
m55
Negative momentum invites analyst trims
-2.3% CAGR, rising leverage, weakening cash generation - this is exactly the profile that produces target-price walk-downs and sell-side tone shifts, feeding a slow de-rating.
m35
Stretched market PE amplifies premium-multiple risk
Market PE 26.9 makes any name trading above intrinsic value vulnerable to multiple compression if the tape rolls; POOL trades at a premium to DCF, so it screens as a source of funds in rotations.
I read this as a persistent but not violent headwind. The macro tape isn't hostile enough to crush the name, but the specific combination that matters here - rates pressing housing, a compounder narrative losing momentum, no cult base to defend, and negative price/cash trends that invite sell-side trims - all points the same direction. There's no catalyst forcing a re-rate up; the path of least resistance for sentiment is drift lower or sideways until either rates break or the growth cadence reasserts itself. Lean Headwind, moderate conviction.
Verify before trusting this (5)
  • Any sell-side target cuts or downgrades citing housing/new-pool weakness
  • Housing starts and existing-home sales prints - the direct read-through to the narrative
  • Whether commentary shifts from 'consolidator compounder' to 'cyclical distributor' in analyst notes
  • 10y yield direction - a break lower would materially ease pressure on housing-adjacent names
  • Peer distributor tape (SITE, FERG, WSO) for confirmation this is name-specific vs sector-wide
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
not run

This lens hasn't been run for this ticker yet.

The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
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My Notes personal — only you see this
v1.1.562 · 9b2927c4 · 2026-08-22 16:52:06