From Seekingalpha · Daniel Jones · · 40s
Latham Group: Cheap Stock for Winter Play
Latham Group's cheap stock offers a winter play despite market headwinds.
In brief
Latham Group's cheap stock offers a winter play despite market headwinds. Latham Group remains a buy with strong market share and revenue growth despite profit compression. Originally reported by Seekingalpha.
Latham Group market position
Latham Group holds 50% North American fiberglass pool market share with strong recurring revenue streams.
Recent financial performance
Recent acquisitions and price increases drove double-digit revenue growth despite near-term profit compression.
Updated financial guidance
Management raised full-year revenue guidance to $600, $620 million and EBITDA to $110, $120 million.
Valuation and outlook
SWIM trades at a notable discount to peers with expected Q3 results showing further revenue and profit gains.
What it means
Latham Group remains a buy with strong market share and revenue growth despite profit compression.
