Latham Group Inc. Common Stock (SWIM)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and can defend their turf. Latham sells in-ground residential pools, covers, and liners under brands like Latham and Narellan. It sells through dealers and distributors, but this is a building-products business, and the numbers show why caution is warranted. In fiscal Q2 2026, the quarter ended 2026-06-27, revenue was $197.5M and net income was $12.8M, or $0.11 diluted EPS. A year earlier, fiscal Q2 2025 revenue was $172.6M and net income was $16.0M, so sales rose while profit fell. Fiscal Q1 2026 was a loss: revenue of $117.3M and a net loss of $8.5M. Full-year fiscal 2025 produced revenue of $545.9M and net income of $11.1M, after a fiscal 2024 net loss of $17.9M, so the Lynch TURNAROUND label is fair. Financial health is mixed: FairStock calculates D/E of 0.76, an Altman Z-score of 1.37, and a Piotroski F-score of 8/9. Free cash flow is $37.0M, a 5.2% yield. At the 2026-10-13 close of $6.09, FairStock's P/E is 121.8, P/B is 1.80, and Graham Number is $1.98, leaving a -207.58% margin of safety. ROE is only 1.32% and ROCE is 2.59%. I see a modestly improving company, not a bargain by the numbers. The price already discounts a lot; I would want tangible improvement in returns and cash generation before calling it compelling.

In plain English: Latham makes in-ground swimming pools, pool covers, and liners and sells them through dealers and distributors. It lost money in 2023 and 2024, returned to a small profit in 2025, and was profitable again in its latest quarter, though profit fell from a year earlier. At the current price, the shares look expensive compared with the company's small profit and what it owns, even though cash flow is positive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-27) · fiscal Q1 2026 10-Q (period ended 2026-03-28) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer