Pool (POOL) Q2 Results Put Fair Value Back In Focus

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Pool (POOL) released second quarter 2026 results on 23 July, reporting sales of US$1,822.94 million and net income of US$188.09 million, alongside an update on its long running share repurchase program.

See our latest analysis for Pool.

Pool's latest quarterly update lands after a tough stretch for shareholders, with the share price down 16.35% year to date and the 1 year total shareholder return declining 37.08% despite a 4.09% gain on the day of the results.

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Pool now trades at a sizeable discount to both analyst targets and an estimated intrinsic value after a long share price slide. Is the market being too harsh on a slow growing business, or are the worries about returns warranted?

Most Popular Narrative: 24.9% Undervalued

Pool's most followed valuation narrative places fair value at $255.91 per share, comfortably above the last close of $192.16. This frames the current discount in the context of modest forecast growth and steady margins.

Expansion of private label offerings (especially chemicals), alongside supply chain and digital platform investments (e.g., POOL360), are driving margin-enhancing product mix and operational efficiencies, supporting gross and net margin improvement over time.

Read the complete narrative.

Want to see how a relatively modest growth outlook still supports a higher value for Pool? The narrative focuses on margin resilience, steady cash generation and a higher future earnings multiple. The key is how these ingredients are combined over time, not any single forecast line item.

Result: Fair Value of $255.91 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Pool's reliance on mature North American housing cycles and inflation pressure on costs could still challenge the margin and earnings assumptions behind this undervalued narrative.

Find out about the key risks to this Pool narrative.

Another View on Pool's Valuation

The DCF based fair value implies Pool is trading 29.4% below an estimate of its future cash flow value at $272.31 per share. That points to an undervalued stock even though the P/E ratio of 17.6x sits above both industry and peer averages. Which signal do you trust more?

Our DCF model is only as useful as the assumptions behind it, so it is worth understanding how the cash flows and discount rate come together in this case. Look into how the SWS DCF model arrives at its fair value.

Story Continues

POOL Discounted Cash Flow as at Jul 2026

Next Steps

Given the mix of caution and optimism around Pool in this update, this is a good time to review the underlying data yourself and decide how you feel about the company. To help frame both sides of the story, take a look at the 3 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include POOL.

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