Core Viewpoint - Pool Corp. is facing a challenging economic environment, with its stock down approximately 12% year to date, but this may present a buying opportunity for investors as it is a high-quality industry leader available at a discount [1]. Group 1: Company Overview - Pool Corp. is the world's largest pool supplies distributor, operating 448 sales centers across North America, Europe, and Australia, serving over 125,000 customers [5]. - The company owns the Pinch A Penny retail franchise, which has around 300 locations [5]. - Pool Corp.'s revenue is significantly driven by recurring sales, with 86% coming from consistent upkeep products for installed pools [6]. Group 2: Financial Performance - Over the past five years, Pool Corp. has achieved a 14% compound annual growth rate (CAGR) in total revenue, reaching $5.3 billion in 2024 [8]. - Despite a slowdown in new pool construction, management remains optimistic about growth from its expanding private-label business and the Pool360 digital platform [9][10]. - For 2025, Pool Corp. anticipates net sales to be "flat to slightly higher" year over year, with an earnings-per-share (EPS) estimate of $11.08 to $11.58, indicating a 3% increase at the midpoint compared to 2024 [10]. Group 3: Capital Allocation and Shareholder Returns - Pool Corp. has a strong free cash flow generation, allowing for a generous capital allocation strategy, including a recent 4% increase in its quarterly dividend to $1.25 per share, yielding about 1.3% [11]. - The company has also increased its share repurchase authorization to $600 million, demonstrating its commitment to shareholders [11]. Group 4: Valuation and Market Position - Pool Corp.'s current forward price-to-earnings (P/E) ratio is 27, which is a discount compared to its historical average P/E of around 30 over the past decade, suggesting the stock may be undervalued [12]. - A potential recovery in the housing market and pool construction, aided by subdued inflation and lower interest rates, could enhance company performance [14].

Valmont Industries (VMI) 2025 Conference June 11, 2025 04:45 PM ET Speaker0 Good afternoon, everyone. My name is David Kieran. I am part of the investment banking team at Wells Fargo Securities, and I'm pleased to be joined on the stage this afternoon with Valmont Industries, our time at the Wells Fargo Conference CFO, Executive Vice President and Chief Financial Officer, Tom Ligori and Senior Vice President of Investor Relations and Treasurer, Renee Campbell are here with us today. Thank you for joining us ...