Pool Corp Stock Story

POOL

Stock

USD 384.27 8.96 2.39%

Macroaxis Story

Royal Caribbean would recover faster from the new pull down as its shares price went up 9.57% to Pool Corp's 10.98%As many rational traders are trying to avoid consumer cyclical space, it makes sense to summarize Pool Corp a little further and understand how it stands against Royal Caribbean and other similar entities. We are going to summarize some of the competitive aspects of both Pool Corp and Royal.

Published over two weeks ago

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Will Royal Caribbean (NYSE:RCL) and Pool Corp (NASDAQ:POOL) deliver in August?

By analyzing existing basic indicators between Pool Corp and Royal, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Royal with a short position in Pool Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Pool Corp has an asset utilization ratio of 604.69 percent. This denotes that the company is making $6.05 for each dollar of assets. An increasing asset utilization means that Pool Corp is more efficient with each dollar of assets it utilizes for everyday operations.

Will Royal Caribbean (NYSE:RCL) and Pool Corp (NASDAQ:POOL) deliver in August?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Pool Corp or Newell is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Pool Corp dividends

A dividend is the distribution of a portion of Pool Corp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Pool Corp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Pool Corp one year expected dividend income is about $2.17 per share.

Pool Corp Dividend Yield is relatively stable at the moment as compared to the past year. The company's current value of Dividend Yield is estimated at 0.0159. Dividends per Basic Common Share is expected to hike to 1.15 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (61.7 M).

	Last Reported	Projected for 2022
Payment of Dividends and Other Cash Distributions	-57.2 M	-61.7 M
Dividend Yield	0.0126	0.0159
Dividends per Basic Common Share	1.07	1.15

Investing in dividend-paying stocks, such as Pool Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Pool Corp must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Pool Corp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Pool Corp's Liquidity

Pool Corp financial leverage refers to using borrowed capital as a funding source to finance Pool Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pool Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Pool Corp's total debt and its cash.

Correlation Between Pool Corp and Newell Brands

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Pool Corp together with similar or unrelated positions with a negative correlation. For example, you can also add Newell Brands to your portfolio. If Newell Brands is not perfectly correlated to Pool Corp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Pool Corp for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between POOL and NWL for more information.

A Deeper look at Pool Corp

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Pool Corp revenue. Based on the latest financial disclosure, Pool Corp reported 5.65 B of revenue. This is 20.76% lower than that of the Consumer Cyclical sector and 107.67% higher than that of the Leisure industry. The revenue for all United States stocks is 40.12% higher than that of Pool Corp. As for Royal Caribbean we see revenue of 1.53 B, which is 43.76% lower than that of the Leisure

	Pool Corp	5.65 Billion
	Sector	2.72 Billion
	Royal	1.53 Billion

5.7 B

Pool Corp

2.7 B

Sector

1.5 B

Royal

Does Pool Corp have anything more to reveal in July?

New potential upside is at 4.7. Pool Corp exhibits very low volatility with skewness of -0.22 and kurtosis of 0.06. However, we advise investors to further study Pool Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pool Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Pool Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Pool Corp Implied Volatility

Pool Corp's implied volatility exposes the market's sentiment of Pool Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Pool Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Pool Corp stock will not fluctuate a lot when Pool Corp's options are near their expiration.

The Bottom Line

While some companies in the leisure industry are either recovering or due for a correction, Pool Corp may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 21st of July 2022, our primary 90 days buy-or-sell advice on the company is Hold. We believe Pool Corp is currently undervalued with very small probability of financial unrest for the next two years.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Pool Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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