Definitive Analysis
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Pool Corporation (POOL)

Company Dividend Discount ModelIndustry: Industrial - DistributionSector: Industrials

Valuation Snapshot

Stable Growth$257.14 - $682.13$393.20
Multi-Stage$180.19 - $196.64$188.27
Blended Fair Value$290.73
Current Price$310.07
Upside-6.24%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS16.48%16.93%4.784.454.013.182.452.231.851.541.321.15
YoY Growth--7.27%11.18%25.96%30.08%9.74%20.66%19.65%16.64%15.38%14.67%
Dividend Yield--1.50%1.11%1.17%0.75%0.71%1.13%1.10%1.06%1.11%1.31%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)412.12
(-) Cash Dividends Paid (M)184.12
(=) Cash Retained (M)228.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)82.4251.5130.91
Cash Retained (M)228.00228.00228.00
(-) Cash Required (M)-82.42-51.51-30.91
(=) Excess Retained (M)145.58176.49197.09
(/) Shares Outstanding (M)37.5937.5937.59
(=) Excess Retained per Share3.874.695.24
LTM Dividend per Share4.904.904.90
(+) Excess Retained per Share3.874.695.24
(=) Adjusted Dividend8.779.5910.14
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$257.14$393.20$682.13
Upside / Downside-17.07%26.81%119.99%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)412.12438.90467.43497.82530.17564.63581.57
Payout Ratio44.68%53.74%62.81%71.87%80.94%90.00%92.50%
Projected Dividends (M)184.12235.87293.57357.78429.10508.17537.96

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)214.17216.20218.23
Year 2 PV (M)242.04246.65251.30
Year 3 PV (M)267.84275.53283.36
Year 4 PV (M)291.68302.89314.43
Year 5 PV (M)313.65328.80344.52
PV of Terminal Value (M)5,444.895,707.885,980.94
Equity Value (M)6,774.277,077.957,392.79
Shares Outstanding (M)37.5937.5937.59
Fair Value$180.19$188.27$196.64
Upside / Downside-41.89%-39.28%-36.58%

High-Yield Dividend Screener

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