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Is this Large Market Cap Stock target price reasonable for Pool Corp. (NASDAQ:POOL)?

The company in question is, Pool Corp. (NASDAQ:POOL) currently with a stock price of 93.56 (0.73% today). The market cap for Pool Corp. is 3916.75, and is in the sector Consumer Goods, and Sporting Goods industry. The target price for Pool Corp. is 105.4. Currently Pool Corp. is trading with a P/E of 28.01, and a forward P/E of 24.16. Average volume for Pool Corp. is 264.17 and so far today it is 59094.

Performance in the last year for Pool Corp. has been 27.53%. For EPS growth, Pool Corp. has seen a growth of 19.10%, and is looking to grow in the next year to 12.00%. More long term stats show that EPS growth has been 20.30% over the last five years and could be 15.00% for the next five years. Pool Corp. has seen sales growth quarter over quarter at 7.90%, with EPS growth quarter over quarter at 13.00%. The 20-day simple moving average is -3.98%, with the 200-day simple moving average coming to 4.71%.

Since the IPO date for Pool Corp. on the 10/13/1995, Pool Corp. has seen performance year to date to be 16.10%. With Pool Corp. trading at 93.56, the dividend yield is 1.34%, and the EPS is 3.32.

So could Pool Corp., be undervalued? Well as said before P/E is 28.01. The PEG is 1.87, P/S is 1.57 and the P/B is at 14.67. The P/cash is 128, with P/free cash flow at 37.66.

Pool Corp. ability to deal with debt shows that the current ratio is 2.3, and the quick ratio is 1. This is with long term debt/equity at 1.86, and total debt/equity at 1.88.

In terms of margins, Pool Corp. has a gross margin of 28.70%, an operating margin of 9.80% and a profit margin of 5.80%.Payout ratio for Pool Corp. is 24.40%. Return on assets come to 13.50% with return on investment coming to 23.30%.

Insider ownership for Pool Corp., is at 1.10% and institutional ownership comes to 94.30%. Outstanding shares are at 42.17. While shares float is 40.15. The float short is currently 2.27%, and short ratio is 3.45.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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