Pool Corporation Stock Beneish M Score

POOL Stock  USD 375.50  3.64  0.96%   
This module uses fundamental data of Pool to approximate the value of its Beneish M Score. Pool M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Pool Piotroski F Score and Pool Altman Z Score analysis.
  
At this time, Pool's Net Debt To EBITDA is quite stable compared to the past year. Interest Debt Per Share is expected to rise to 32.60 this year, although the value of Debt To Equity will most likely fall to 0.83. At this time, Pool's Stock Based Compensation To Revenue is quite stable compared to the past year. EV To Sales is expected to rise to 3.17 this year, although the value of Free Cash Flow Yield will most likely fall to 0.03.
At this time, it appears that Pool is an unlikely manipulator. The earnings manipulation may begin if Pool's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Pool executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Pool's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.77
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.73

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Pool Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Pool's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables360.1 M342.9 M
Sufficiently Up
Slightly volatile
Total Revenue5.8 B5.5 B
Sufficiently Up
Slightly volatile
Total Assets3.6 B3.4 B
Sufficiently Up
Slightly volatile
Total Current Assets1.9 B1.8 B
Sufficiently Up
Slightly volatile
Non Current Assets Total1.7 B1.6 B
Sufficiently Up
Slightly volatile
Property Plant Equipment233.9 M222.8 M
Sufficiently Up
Slightly volatile
Selling General Administrative952.2 M906.9 M
Sufficiently Up
Slightly volatile
Total Current Liabilities809.3 M770.8 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total1.4 B1.3 B
Sufficiently Up
Slightly volatile
Net Debt1.4 B1.3 B
Sufficiently Up
Slightly volatile
Short Term Debt133.8 M127.4 M
Sufficiently Up
Slightly volatile
Long Term Debt1.1 BB
Sufficiently Up
Slightly volatile
Operating Income784.5 M747.1 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities932.6 M888.2 M
Sufficiently Up
Slightly volatile
Long Term Investments1.4 M1.3 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.220.2996
Way Down
Very volatile

Pool Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Pool's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Pool in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Pool's degree of accounting gimmicks and manipulations.

About Pool Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

42.15 Million

At this time, Pool's Depreciation And Amortization is quite stable compared to the past year.

Pool Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Pool. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables226.5M289.2M376.6M351.4M342.9M360.1M
Total Revenue3.2B3.9B5.3B6.2B5.5B5.8B
Total Assets1.5B1.7B3.2B3.6B3.4B3.6B
Total Current Assets973.6M1.1B1.8B2.0B1.8B1.9B
Net Debt661.2M589.7M1.4B1.6B1.3B1.4B
Short Term Debt68.1M72.8M80.8M100.5M127.4M133.8M
Long Term Debt499.7M404.1M1.2B1.4B1.0B1.1B
Operating Income341.2M464.0M832.8M1.0B747.1M784.5M
Investments(42.3M)(146.3M)(849.6M)(50.9M)(70.9M)(74.4M)

About Pool Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Pool Corporation's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Pool using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Pool Corporation based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Pool Investors Sentiment

The influence of Pool's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Pool. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Pool's public news can be used to forecast risks associated with an investment in Pool. The trend in average sentiment can be used to explain how an investor holding Pool can time the market purely based on public headlines and social activities around Pool Corporation. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Pool's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Pool's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Pool's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Pool.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Pool in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Pool's short interest history, or implied volatility extrapolated from Pool options trading.

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When determining whether Pool is a strong investment it is important to analyze Pool's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Pool's future performance. For an informed investment choice regarding Pool Stock, refer to the following important reports:
Check out Pool Piotroski F Score and Pool Altman Z Score analysis.
You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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When running Pool's price analysis, check to measure Pool's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pool is operating at the current time. Most of Pool's value examination focuses on studying past and present price action to predict the probability of Pool's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pool's price. Additionally, you may evaluate how the addition of Pool to your portfolios can decrease your overall portfolio volatility.
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Is Pool's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pool. If investors know Pool will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pool listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.27)
Dividend Share
4.3
Earnings Share
13.34
Revenue Per Share
143.179
Quarterly Revenue Growth
(0.09)
The market value of Pool is measured differently than its book value, which is the value of Pool that is recorded on the company's balance sheet. Investors also form their own opinion of Pool's value that differs from its market value or its book value, called intrinsic value, which is Pool's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pool's market value can be influenced by many factors that don't directly affect Pool's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pool's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pool is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pool's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.