Lumida
/SWIM
⌘K
Latham Group Inc

Latham Group Inc

SWIM
$6.32USD↓-0.16%-0.01 today

MARKET CAP

743.5M

P/E (TTM)

90.3x

FWD P/E

—

DAY RANGE

$6 – $7

52W RANGE

$5
$9

AI Summary

Stalk
StalkMedium

SWIM remains in a Stage 2 corrective reset within a long-term uptrend. Price is consolidating below key moving averages with flat short-term EMAs and neutral indicators. The Medium-Term bias stays bullish but Short-Term timing is unfavorable. Execution is deferred, stalking pullbacks into the short-term EMA region for a cleaner entry.

  • ↑10-day MA crossed above 50-day MA; bullish Aroon signal supports momentum
  • ↑Consensus analyst target of $7.50 suggests 39.9% upside potential
  • ↓P/E of 78.3 vs peers indicates potential overvaluation
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The case for & against

Bull & Bear analysis

Bearish

Latham Group Inc. (NASDAQ:SWIM) is a leading manufacturer of pool products, focusing primarily on fiberglass pools and related components. Positioned in the home improvement industry, Latham Group is capitalizing on the rising trend of backyard leisure and outdoor living spaces. As a dominant player, the company benefits from brand recognition and a solid market presence, which supports its growth trajectory amid a competitive landscape. However, its high P/E ratio may reflect investor optimism or potential overvaluation in light of increasing pressure on earnings growth.

Bull says

  • ↑10-day MA crossed above 50-day MA; bullish Aroon signal supports momentum
  • ↑Consensus analyst target of $7.50 suggests 39.9% upside potential
  • ↑Growing outdoor living trend underpins strong revenue growth prospects
  • ↑High earnings yield and moderate leverage favor capital efficiency
  • ↑Strong brand recognition and favorable liquidity factor attract institutions
  • ↑Home improvement demand tailwinds support long-term earnings

Bear says

  • ↓P/E of 78.3 vs peers indicates potential overvaluation
  • ↓Analysts project an 11.1% EPS decline next fiscal year
  • ↓Short interest rose 16.3%, reflecting growing skepticism
  • ↓Low profitability and negative growth factors risk margins
  • ↓Heightened volatility exposes investors to significant price swings
  • ↓Competition and rising rates may pressure demand and margins

Investment themes with SWIM

Fashion Luxury↑ +0.50%

High-end clothing, accessories, and luxury brands

MBUU · JOUT · MCFT
High Dividend Yield↑ +0.15%

Companies paying above-average dividends

AISP · SMR · NWL

Earnings Call · Q4 2023 · Mgmt. Guidance

Updated 03-05-2025neutral

Transcript signals

Bull points

  • if we get a massive tailwind from deflation, it could be a different story as we look out in time. But right now, it's kind of flat pricing, for the year is the assumption and the approach we're taking.
  • as you heard me saying in my prepared remarks, we do expect that 2024 is another year where we stay where we are cash flow positive.
  • As a result of that net debt, so that $200 million and as a result of this, our net debt leverage ratio was at $2.25. So all-in-all, quite comfortable on where the balance sheet stands right now.

Bear points

  • it's back to the expected 15% decline in the market, and I think it's fair to say that we're probably taking a little bit more conservative approach.
  • Labor continues to trend up, freight is continuing to go up. And rates or I should say material costs are still in many cases fairly elevated from where we were back in the 2019, 2020 timeframe when we took on $100 plus million of inflation in the business and really never were able to pass full pricing on to maintain margin levels, which has driven some of the compression we've seen.
  • The most impactful one that is driving the entire EBITDA margin gap here is the impact from lower volume and lower fixed cost levels, right?
Read full transcript analysis ›