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Latham Group, Inc.

Rank #334Value

SWIM · Nasdaq · Industrials

Latham Group, Inc. (SWIM) — Rank #334 by gross profitability (GP/assets 0.21) · ROE 2.7% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0001833197 · all metrics point-in-time as of the filing date.

About

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand.

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The company offers in-ground swimming pools, including fiberglass and packaged pools; and covers, such as automatic safety and all-season pool covers; and liners. It sells its products directly to dealers and distributors who warehouse the products and sell to dealers under the Latham, The Pool Company brand name, as well as sub-brands comprising Narellan, CoverStar, Radiant, and GLI brands. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc.

was founded in 1956 and is headquartered in Latham, New York.

Industry
Building Products & Equipment
Sector
Industrials
State
NY
Filer Category
Emerging growth company
Fiscal Year End
December 31

Price History

SWIM-71.5% · -22.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$737.05M

P/E (annual)

69.6

P/S (annual)

1.4

P/B

1.8

P/OCF (annual)

11.6

Shareholder Yield

-3.8%

Employees

1,900

Industry

Building Products & Equipment

Exchange

Nasdaq

Signal Flags

4 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Quality Profile

Profitability

1/1 pass
GP / assets
0.21
Return on equity
2.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.09
Current ratio
2.16×
Net cash
-$236.33M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.7%

Growth

1/2 pass
Revenue growth
7.4%
Piotroski F-Score
8 / 9
Share dilution
3.8%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

7.5%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 3.8% — per-share value needs a total required return of 11.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 8.9%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

3.2%

r = 10% (base)

7.5%

r = 12%

11.3%

Net debt / market cap: 31.5%— material leverage inflates the implied growth read.

Base FCF: $38M3Y mean FCF: $54.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

80.0xCheap
80.0xmed 100.6x201.3x

P / S

Price / revenue per share

1.6xFair
0.6xmed 1.7x4.8x

P / B

Price / book value per share

2.1xFair
0.9xmed 2.2x7.9x

P / GP

Price / gross profit per share

4.7xFair
2.0xmed 5.6x15.6x

P / FCF

Price / free cash flow per share

22.7xFair
4.2xmed 29.0x204.4x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.21

Primary signal (Novy-Marx).

4th of 6 SIC 30 peers

Return on equity

2.7%

Gross margin

33.4%

5th of 6 SIC 30 peers

Revenue growth (YoY)

7.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-7.8%

Revenue CAGR (5Y)

6.2%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.09

3rd of 6 SIC 30 peers (best = lowest)

Current ratio

2.16×

2nd of 6 SIC 30 peers

Quick ratio

1.24×

Net cash

-$236.33M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$38.05M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.42

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.7%

Stock-based comp intensity.

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Startup
Decline
Value
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