Breaking Down Latham Group, Inc. (SWIM) Financial Health: Key Insights for Investors

Are you keeping a close watch on Latham Group Inc. (SWIM) and wondering about its financial stability? Despite a challenging market environment, the company's in-ground pool sales outperformed the U.S. pool market, with fiberglass pools representing 75% of sales in 2024, up from 73% in 2023. For the full year 2024, the company reported net sales of $508.5 million, a net loss of $17.9 million, and an adjusted EBITDA of $80.2 million. Want to dive deeper into these figures and understand what they mean for investors? Keep reading to uncover key insights into SWIM's financial health.

Latham Group, Inc. (SWIM) Revenue Analysis

Understanding Latham Group, Inc. (SWIM)'s revenue streams involves examining its primary sources, growth rates, and segment contributions. A detailed look into these aspects provides key insights for investors.

Primary Revenue Sources:

Latham Group, Inc. primarily generates revenue through:

• Sale of in-ground swimming pools
• Sale of pool covers
• Other related products

Year-over-Year Revenue Growth Rate:

Analyzing the historical revenue trends reveals the year-over-year growth rate. For instance, in 2023, Latham Group reported net sales of $621.4 million, a decrease of 26.4% compared to $844.4 million in 2022. The company's financial performance in 2024 will be crucial to understanding its recovery and growth trajectory. Factors such as market demand, economic conditions, and strategic initiatives influence these fluctuations.

Contribution of Different Business Segments to Overall Revenue:

To dissect the overall revenue, it's important to consider the performance of its main segments:

The relative contribution of each segment to the total revenue offers insights into the company's strengths and areas needing improvement.

Analysis of Significant Changes in Revenue Streams:

Significant changes in revenue streams often stem from strategic shifts, market dynamics, or external factors. For example, the 26.4% decrease in net sales in 2023 was primarily due to a 28% decrease in unit volume, partially offset by a 2% increase in net average selling price. Furthermore, inflationary pressures and rising interest rates also played a role in reduced consumer spending on discretionary items like swimming pools.

For additional details, refer to Breaking Down Latham Group, Inc. (SWIM) Financial Health: Key Insights for Investors.

Latham Group, Inc. (SWIM) Profitability Metrics

Analyzing Latham Group, Inc. (SWIM)'s profitability involves scrutinizing its gross profit, operating profit, and net profit margins to understand its financial health and operational efficiency. Examining these metrics over time and comparing them against industry averages provides valuable insights for investors. For a deeper understanding of who is investing in Latham Group, Inc. (SWIM), check out: Exploring Latham Group, Inc. (SWIM) Investor Profile: Who’s Buying and Why?

To effectively evaluate Latham Group, Inc. (SWIM)'s profitability, consider the following key areas:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). It reflects the company's efficiency in managing production costs.
• Operating Profit Margin: This metric reveals the percentage of revenue left after deducting both COGS and operating expenses. It showcases the company's profitability from its core business operations before considering interest and taxes.
• Net Profit Margin: Representing the bottom line, this ratio shows the percentage of revenue remaining after all expenses, including interest and taxes, have been deducted. It provides a comprehensive view of the company's overall profitability.

Analyzing trends in these profitability metrics over several periods can highlight improvements or declines in Latham Group, Inc. (SWIM)'s financial performance. Comparing these ratios with industry averages offers context, helping investors understand whether the company is performing above or below its peers.

Operational efficiency plays a crucial role in driving profitability. Effective cost management and favorable gross margin trends are indicators of a well-run company. Monitoring these aspects can provide insights into Latham Group, Inc. (SWIM)'s ability to control costs and maximize profits.

To provide a clearer picture, a detailed table summarizing Latham Group, Inc. (SWIM)'s key profitability ratios is essential. While specific figures require up-to-date financial data, the following table illustrates a potential structure for presenting this information:

By examining these metrics and trends, investors can gain a comprehensive understanding of Latham Group, Inc. (SWIM)'s financial health and make informed decisions.

Latham Group, Inc. (SWIM) Debt vs. Equity Structure

Understanding how Latham Group, Inc. (SWIM) finances its growth involves analyzing its debt and equity structure. This includes assessing the levels of long-term and short-term debt, evaluating the debt-to-equity ratio, and noting any recent financing activities. The balance between debt and equity is crucial for financial stability and growth.

Latham Group, Inc.'s approach to financing its operations and growth is reflected in its debt levels. As of the fiscal year 2024, insights into their debt composition reveal:

• Long-term Debt: Details on Latham Group, Inc.'s long-term debt, which includes items like bonds and long-term loans, are essential for understanding its long-term financial obligations.
• Short-term Debt: An overview of the short-term debt, covering liabilities due within a year, such as short-term loans.

The debt-to-equity ratio is a key metric for evaluating Latham Group, Inc.'s financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A comparison of Latham Group, Inc.'s ratio to industry standards provides context on its financial risk relative to its peers. The debt-to-equity ratio can be calculated as follows:

Debt-to-Equity Ratio = Total Liabilities / Shareholder Equity

Recent financial activities, such as debt issuances, credit ratings, or refinancing, can significantly impact Latham Group, Inc.'s financial health. Keeping track of these activities offers insights into the company's strategies for managing its capital structure.

Balancing debt and equity is vital for sustainable growth. Excessive debt can increase financial risk, while relying solely on equity might limit growth opportunities. Evaluating how Latham Group, Inc. (SWIM) navigates this balance is essential for investors.

For more detailed insights into Latham Group, Inc.'s financial health, you can explore: Breaking Down Latham Group, Inc. (SWIM) Financial Health: Key Insights for Investors

Latham Group, Inc. (SWIM) Liquidity and Solvency

Analyzing Latham Group, Inc. (SWIM)'s financial health involves a close look at its liquidity and solvency, which are vital for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its capacity to meet long-term debts.

Here's a breakdown of key areas:

Assessing Latham Group, Inc.'s Liquidity:

• Current and Quick Ratios: These ratios provide insights into Latham Group, Inc.'s ability to cover its short-term liabilities with its current assets.
• Analysis of Working Capital Trends: Monitoring the trends in working capital (current assets minus current liabilities) helps in understanding the operational efficiency and short-term financial health of the company.
• Cash Flow Statements Overview: Examining the cash flow statements, particularly the operating, investing, and financing cash flow trends, offers a clear picture of how Latham Group, Inc. generates and uses cash.
• Potential Liquidity Concerns or Strengths: Identifying any potential red flags or positive indicators in Latham Group, Inc.'s liquidity position is crucial for risk assessment.

As of the fiscal year 2024, key financial figures provide a snapshot of Latham Group, Inc.'s financial status.

Latham Group, Inc. reported the following cash flow activities for the fiscal year 2024:

• Net cash provided by operating activities: $94.6 million
• Net cash used for investing activities: $23.9 million
• Net cash used for financing activities: $41.9 million

These figures highlight how Latham Group, Inc. is managing its cash. Operating activities are a strong source of cash, while investing and financing activities represent uses of cash. This mix is typical for a company that is investing in its future while managing its capital structure.

Here is a summary of Latham Group, Inc.'s cash flow statement for 2024:

Understanding who is investing in Latham Group, Inc. can provide additional context to these financial metrics. Learn more about the company's investor profile: Exploring Latham Group, Inc. (SWIM) Investor Profile: Who’s Buying and Why?

Latham Group, Inc. (SWIM) Valuation Analysis

Assessing whether Latham Group, Inc. (SWIM) is overvalued or undervalued involves examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, and analyst consensus.

Currently, up-to-date, specific valuation ratios such as P/E, P/B, and EV/EBITDA for Latham Group, Inc. (SWIM) as of 2024 are not available in the provided search results. To determine whether the stock is overvalued or undervalued, investors typically compare these ratios to industry averages and historical data for the company. A high P/E ratio, for instance, might suggest the stock is overvalued relative to its earnings, while a low P/B ratio could indicate undervaluation relative to its assets. Similarly, a high EV/EBITDA ratio could suggest overvaluation.

To gain a clearer picture of Latham Group, Inc.'s (SWIM) valuation, consider the following points:

• Stock Price Trends: Review the stock price trends over the last 12 months (or longer) to understand market sentiment and historical performance.
• Dividend Yield and Payout Ratios: As of now, Latham Group, Inc. (SWIM) does not offer dividends. Therefore, dividend yield and payout ratios are not applicable.
• Analyst Consensus: Check the analyst consensus on the stock (buy, hold, or sell) to gauge professional opinions on its valuation and future prospects.

For detailed financial data and ratios, investors should consult financial websites, analyst reports, and company filings. These resources provide the necessary information to conduct a thorough valuation analysis.

Understanding a company's mission, vision, and core values can also provide context for its strategic direction and long-term potential. More information can be found at: Mission Statement, Vision, & Core Values of Latham Group, Inc. (SWIM).

Latham Group, Inc. (SWIM) Risk Factors

Several factors, both internal and external, can significantly impact Latham Group, Inc.'s financial health. These include industry competition, regulatory changes, and overall market conditions. Understanding these risks is crucial for investors.

Industry Competition: The swimming pool industry is highly competitive. Latham Group, Inc. faces competition from other fiberglass pool manufacturers, as well as companies offering alternative pool types like concrete and vinyl liner pools. Increased competition could lead to pricing pressures and reduced market share.

Regulatory Changes: Changes in environmental regulations or building codes could increase the cost of manufacturing or installing fiberglass pools. For example, stricter regulations on volatile organic compounds (VOCs) used in the manufacturing process could require Latham Group, Inc. to invest in new equipment or processes.

Market Conditions: Economic downturns can significantly impact demand for swimming pools, as they are considered discretionary purchases. Rising interest rates can also make it more expensive for consumers to finance pool purchases, further dampening demand. Additionally, fluctuations in raw material costs, such as resin and fiberglass, can impact Latham Group, Inc.'s profitability.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: Supply chain disruptions and increased raw material costs can impact production and profitability. Labor shortages and increased labor costs can also pose challenges.
• Financial Risks: High levels of debt could limit Latham Group, Inc.'s financial flexibility and ability to invest in growth opportunities. Fluctuations in currency exchange rates can also impact earnings, particularly for companies with international operations.
• Strategic Risks: Failure to innovate and adapt to changing consumer preferences could lead to a loss of market share. Additionally, acquisitions and integrations can be risky and may not always achieve the desired results.

Mitigation strategies and plans are often detailed in company filings. These may include:

• Diversifying the supply chain to reduce reliance on single suppliers.
• Implementing cost-saving measures to improve profitability.
• Investing in research and development to develop new and innovative products.
• Carefully evaluating potential acquisitions and integrations.

Understanding these risks and mitigation strategies is essential for investors to assess Latham Group, Inc.'s long-term financial health and potential for growth. More information about Latham Group, Inc. can be found here: Mission Statement, Vision, & Core Values of Latham Group, Inc. (SWIM).

Latham Group, Inc. (SWIM) Growth Opportunities

Latham Group, Inc. (SWIM) is focused on several key strategies to drive future growth, including product innovation, strategic acquisitions, and market expansion. These initiatives aim to strengthen its position in the pool industry and capitalize on increasing demand for fiberglass pools.

Key growth drivers for Latham Group, Inc. (SWIM):

• Product Innovations: Latham consistently invests in R&D to introduce new and improved pool designs and technologies.
• Market Expansions: Focus on expanding its geographic presence, particularly in underpenetrated markets, to capture additional market share.
• Strategic Acquisitions: Pursuing acquisitions to consolidate the market, expand its product offerings, and gain access to new technologies or distribution channels.

Future revenue growth projections and earnings estimates for Latham Group, Inc. (SWIM) will depend on several factors, including the overall health of the housing market, consumer spending on leisure activities, and the company's ability to execute its growth strategies effectively.

Strategic initiatives and partnerships that may drive future growth:

• Dealer Network Expansion: Latham focuses on strengthening its relationships with dealers and expanding its network to improve market reach and customer service.
• Digital Marketing Initiatives: Investment in digital marketing to generate leads, enhance brand awareness, and drive online sales.
• Partnerships and Alliances: Collaborating with other companies to offer complementary products or services and expand its market reach.

Latham Group, Inc. (SWIM) possesses several competitive advantages that position it for growth:

• Leading Market Position: As a leading manufacturer of fiberglass pools, Latham benefits from brand recognition, scale, and established relationships with dealers and distributors.
• Product Innovation: Continuous investment in R&D allows Latham to offer differentiated products and technologies that meet evolving customer needs.
• Operational Efficiency: Latham focuses on improving its manufacturing processes, supply chain management, and cost structure to enhance profitability and competitiveness.

Here is some additional information regarding Latham Group, Inc. (SWIM): Mission Statement, Vision, & Core Values of Latham Group, Inc. (SWIM).

To provide a clearer picture, let's look at potential financial projections. Please note that these are illustrative and based on general growth expectations, not specific company guidance for the 2024 fiscal year.

These projections assume a moderate growth rate, continued investment in R&D, and effective execution of strategic initiatives. Actual results may vary based on market conditions and company-specific factors.