2024-07-10 19:19:56 ET
Summary
- Pool Corp faces rapidly declining revenues and earnings as the Covid surge of at-home leisure fades.
- Yet, it trades at multiples well above all peers and at a high multiple to peak earnings.
- The company faces increasing headwinds, 17 of which are discussed.
There have been 13 articles written about Pool Corporation ( POOL ) in Seeking Alpha in the past year. The last 12 either had sell or hold ratings. Being a contrarian, I tend to go the opposite direction of the market. But after taking a hard look, it's clear that my fellow authors have been right, and will likely continue to be right.
There is nothing wrong with POOL as a company or with its management. The issue is an excessive valuation going into a period of declining results after a Covid-induced surge. The most important section of this report is the valuation section. I will compare POOL to its peers and make adjustments to reach a valuation. But also take a hard look at the 17 headwinds facing this company....
Read the full article on Seeking Alpha
For further details see:
Time To Get Out Of The Pool Corp