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Pool Corporation Declares a Dividend of $0.31 Per Share

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Price movement

Pool Corporation (POOL) has a market capitalization of $4.2 billion. It fell by 0.13% to close at $102.28 per share on July 29, 2016.

The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.0%, 12.0%, and 27.5%, respectively, on the same day. POOL is trading 5.1% above its 20-day moving average, 9.8% above its 50-day moving average, and 20.6% above its 200-day moving average.

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Related ETFs and peers

The SPDR S&P 400 Mid-Cap Growth ETF (MDYG) invests 0.57% of its holdings in Pool. The ETF tracks a market cap–weighted index of growth companies selected from the S&P 400. The YTD price movement of MDYG was 9.4% on July 29.

The Vanguard Small-Cap ETF (VB) invests 0.10% of its holdings in Pool. The ETF tracks the CRSP US Small Cap Index. The market cap–weighted index includes the bottom 2%–15% of the investable universe.

The market capitalizations of Pool’s competitors are as follows:

  • Home Depot (HD) — $172.4 billion
  • Beacon Roofing Supply (BECN) — $2.8 billion

Pool declared a dividend

Pool Corporation has declared a quarterly cash dividend of $0.31 per share on its common stock. The dividend will be paid on August 24, 2016, to shareholders of record on August 10, 2016.

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Performance of Pool in 2Q16

Pool reported 2Q16 net sales of $918.9 million, a rise of 7.9% compared to net sales of $851.9 million in 2Q15. The company’s gross profit margin and operating income rose by 1.1% and 10.3%, respectively, in 2Q16 over 2Q15.

Its net income and EPS (earnings per share) rose to $85.4 million and $1.98, respectively, in 2Q16, compared to $77.9 million and $1.75, respectively, in 2Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $150.3 million in 2Q16, a rise of 10.6% over 2Q15.

Pool’s cash and cash equivalents fell by 21.3%, and its product inventories rose by 4.2% in 2Q16 over 2Q15. Its current ratio fell to 2.3x, and its debt-to-equity ratio rose to 3.5x in 2Q16, compared to a current ratio and a debt-to-equity ratio of 2.6x and 3.3x, respectively, in 2Q15. Pool has projected EPS in the range of $3.30–$3.45 for 2016.

In the next article, we’ll discuss WestRock (WRK).

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