Pool

Put this one on your radar for further research and due diligence..

$POOL (-1,07 %) is a high quality compounder, that reinvests its free cash flow aggressively into acquisitions and expansion of its existing revenue streams and into others, many of which are vertically integrated and interconnected.

One of my favourite compunder stocks: $POOL (-1,07 %)

Since nobody has ever talked about this stock in this forum, I'll gladly do it.

This company is a constructor of pools (home pools and professional polls) and a reseller of pool equipment products across the world.

• ROIC of over 20%
• ROE over 35%
• Share buyback between 1 and 2% a year
• Dividend growth of over 9% a year with a payout ratio under 40%
• Half of the revenue comes from recurring revenue, the other half is linked to the construction of new pools
• The revenue decreasing in the last quarters is due to the less constructions of pools due to higher interests rates
• Free cash flow is increasing fast year over year (over 85% increase last year)
• Free cash flow margin of 15%
• Total assets > Total liabilities
• P/E of 23 and P/FCF under 15
• This company outperformed the SP500