Hayward Holdings Inc. Common Stock (HAYW)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• Generates $175 million in annual free cash flow (5.2% yield on market cap)
• Solid return on equity of 10.1% above cost of capital

AI Analysis

Hayward Holdings Inc. Common Stock is a small-cap industrials company valued at $3.4 billion. The business generates $1.1 billion in annual revenue with a 6.1% net margin and $175 million in free cash flow. From a quality standpoint, Hayward shows Altman Z-Score of 2.1 in the grey zone and adequate 10% ROE. On valuation, the stock is reasonably priced at 22.5x earnings, with trades above its Graham Number with a negative 46% margin. Growth dynamics show revenue growing at 6.8% and profit growth of 25.0%. Our composite FairStock Score of 58/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $175 million in annual free cash flow (5.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer