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Latham Group
(NASDAQ:SWIM)
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Rating:63Neutral
Price Target:
$7.50
▲(36.36% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by improving financial performance and cash generation alongside constructive technical momentum. The latest earnings call reinforces the recovery with raised guidance and strong demand indicators, partially offset by near-term margin pressures. The largest drag is valuation, with an extremely high P/E and no dividend yield provided, limiting upside unless profitability expands meaningfully.
Positive Factors
Raised Growth Guidance
Higher guidance, supported by 14% Q2 sales growth and strong organic expansion, indicates improving demand and potential share gains. Sustained execution could strengthen Latham’s revenue base and operating scale over the next several quarters.
Negative Factors
Fragile Profitability
Thin earnings and low returns indicate that Latham’s recovery has not yet translated into robust shareholder economics. Limited profit buffers leave results vulnerable to weaker demand, production inefficiencies and moderate cost increases.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised Growth Guidance
Higher guidance, supported by 14% Q2 sales growth and strong organic expansion, indicates improving demand and potential share gains. Sustained execution could strengthen Latham’s revenue base and operating scale over the next several quarters.
Read all positive factors
Latham Group Key Performance Indicators (KPIs)
Any
Revenue by Product Line
Shows how sales are split across Latham’s product lines (for example, pool shells, equipment, filtration systems, and renovation services). Reveals which businesses drive growth and profitability, highlights where margins are strongest, and signals how diversified the company’s revenue base is. A shift toward higher-margin lines or services can improve earnings, while heavy reliance on one product increases exposure to seasonality, housing-market swings, and supply-chain disruption.
Shows how sales are split across Latham’s product lines (for example, pool shells, equipment, filtration systems, and renovation services). Reveals which businesses drive growth and profitability, highlights where margins are strongest, and signals how diversified the company’s revenue base is. A shift toward higher-margin lines or services can improve earnings, while heavy reliance on one product increases exposure to seasonality, housing-market swings, and supply-chain disruption.
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The Fly
The FlyLatham Group (SWIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$839.99M
Dividend YieldN/A
Average Volume (3M)618.71K
Price to Earnings (P/E)152.8
Beta (1Y)1.38
Revenue Growth10.50%
EPS GrowthN/A
CountryUS
Employees1,900
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.05
Shares Outstanding117,646,090
10 Day Avg. Volume843,640
30 Day Avg. Volume618,711
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)1.82
Price to Sales (P/S)1.35
P/FCF Ratio28.39
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$7.41Price Target Upside34.77% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.19
Revenue Forecast (FY)$606.16M
Latham Group Business Overview & Revenue Model
Company Description
Latham Group, Inc. is a company that focuses on the creation, manufacturing, and distribution of residential in-ground swimming pools. Its market presence spans North America, Australia, and New Zealand. The firm's product range encompasses variou...
How the Company Makes Money
Latham Group makes money primarily by selling in-ground swimming pool products to trade customers (e.g., independent dealers, pool builders/installers, and related distributors) rather than directly to most end consumers. Its core revenue stream i...
Latham Group Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed a positive operational and demand story: strong top-line growth (14% YoY), robust in-ground/fiberglass momentum, improved consumer demand KPIs, and upgraded full-year guidance. Management acknowledged short-term margin pressure from an unexpectedly rapid Q2 ramp, higher SG&A from growth investments, FX losses and transportation headwinds, but expects most ramp costs to be recaptured and sees continued upside from strategic initiatives (Sand States expansion, lean programs, M&A optionality). Given the outsized revenue and organic growth, raised guidance, and management’s plan to recover temporary inefficiencies, positives meaningfully outweigh the near-term challenges.Positive Updates
Strong Top-Line Growth
Net sales of $197.0M in Q2 2026, up 14% YoY from $173.0M; organic growth 10% and 4% of growth from the Freedom Pools acquisition completed Feb 2026.
Negative Updates
Gross Margin Contraction
Gross margin declined to 35.5% in Q2, down 160 basis points YoY. Company reported ~$2.8M of incremental ramp-up costs creating ~140 bps headwind; a portion expected to be recovered in H2.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Net sales of $197.0M in Q2 2026, up 14% YoY from $173.0M; organic growth 10% and 4% of growth from the Freedom Pools acquisition completed Feb 2026.
Read all positive updates
Company Guidance
Latham raised its full‑year 2026 guidance, moving the midpoint of net sales growth to 11.7% (from 9%) and the midpoint of adjusted EBITDA growth to 15.2% (from 12.7%), citing Q2 results that included net sales of $197.0M (+14% YoY: +10% organic, +4% from the Freedom Pools acquisition), in‑ground pool sales of $96.0M (+23% YoY, +14% organic), cover sales of $41.0M (+10%), liner sales of $60.0M (+6%), gross profit of $70.0M (+9.6%) with gross margin at 35.5% (‑160 bps), adjusted EBITDA margin of 22.6% (vs. 23.1% LY), and net income of $13.0M ($0.11/share); management expects to recapture the majority of the ~$2.8M Q2 ramp‑up costs (a ~140‑bp gross‑margin headwind) over the next two quarters, reiterated capex (Q2 $6M; H1 $28.1M), noted the $17M Freedom Pools deal, reported total debt of $280M (net leverage 2.2 targeting <2.0 by year‑end), and flagged mitigation actions—pricing and a freight surcharge—for Middle East‑driven commodity/transportation pressures.Latham Group Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 576.64M | 545.91M | 508.52M | 566.49M | 695.74M | 630.46M |
| Gross Profit | 192.48M | 182.09M | 153.74M | 152.94M | 216.47M | 204.16M |
| EBITDA | 85.91M | 90.65M | 60.55M | 61.61M | 79.62M | 3.13M |
| Net Income | 5.33M | 11.12M | -17.86M | -2.39M | -5.69M | -62.35M |
Balance Sheet | ||||||
| Total Assets | 860.37M | 823.22M | 794.21M | 835.00M | 869.68M | 794.48M |
| Cash, Cash Equivalents and Short-Term Investments | 43.48M | 71.04M | 56.40M | 102.76M | 32.63M | 43.95M |
| Total Debt | 311.02M | 311.44M | 310.83M | 333.12M | 352.19M | 280.41M |
| Total Liabilities | 448.94M | 417.36M | 406.99M | 435.80M | 486.89M | 440.84M |
| Stockholders Equity | 411.43M | 405.86M | 387.22M | 399.20M | 382.79M | 353.64M |
Cash Flow | ||||||
| Free Cash Flow | 37.02M | 26.05M | 41.19M | 83.18M | -7.38M | 8.71M |
| Operating Cash Flow | 68.12M | 51.43M | 61.31M | 116.37M | 32.31M | 33.69M |
| Investing Cash Flow | -45.34M | -30.32M | -84.64M | -31.73M | -45.02M | -108.20M |
| Financing Cash Flow | -7.12M | -6.97M | -22.02M | -13.88M | 3.77M | 60.02M |
Latham Group Technical Analysis
Positive
5.50
Price Trends
6.34
Positive
5.94
Positive
6.20
Positive
Market Momentum
0.28
Positive
57.52
Neutral
29.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWIM, the sentiment is Positive. The current price of 5.5 is below the 20-day moving average (MA) of 6.92, below the 50-day MA of 6.34, and below the 200-day MA of 6.20, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 57.52 is Neutral, neither overbought nor oversold. The STOCH value of 29.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWIM.
Latham Group Risk Analysis
Latham Group disclosed 35 risk factors in its most recent earnings report. Latham Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Latham Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $861.03M | 12.69 | 13.43% | 2.63% | 1.79% | 36.42% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $839.99M | 152.79 | 1.31% | ― | 10.50% | ― | |
62 Neutral | $689.00M | 20.91 | 5.86% | ― | 0.26% | -22.34% | |
57 Neutral | $656.33M | -359.87 | -0.31% | ― | 2.13% | -107.14% | |
52 Neutral | $1.37B | -159.76 | -0.96% | ― | 14.47% | -220.54% | |
49 Neutral | $915.80M | -3.58 | -35.45% | 1.72% | 14.25% | -1038.06% |
* Industrials Sector Average
SWIM
Latham Group
7.12
-0.95
-11.77%
APOG
Apogee
40.86
-1.99
-4.64%
BXC
Bluelinx Holdings
82.77
0.00
0.00%
ROCK
Gibraltar Industries
46.33
-17.73
-27.68%
NX
Quanex
19.82
-1.14
-5.42%
JBI
Janus International Group
5.07
-5.34
-51.30%
Latham Group Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Latham Group Refinances Capital Structure with New Credit Facilities
Positive
Aug 21, 2026
On August 20, 2026, Latham Group subsidiaries entered into a new senior secured credit agreement providing a $75 million multicurrency revolving credit facility and a $300 million U.S. dollar term loan. Proceeds were used that day to fully repay a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.