Company Overview
Leslie's, Inc. operates as a direct-to-consumer pool and spa care brand within the United States, focusing on the marketing and sale of pool and spa supplies, along with related products and services. The company also offers a variety of maintenance items essential for pool and spa owners, including chemicals, equipment and parts, and cleaning accessories. This business falls under the Consumer Cyclical sector and the Specialty Retail industry, classifications that indicate the company's performance is closely tied to discretionary consumer spending and seasonal weather patterns. The organization employs a workforce of 3,790 individuals to support its extensive distribution network and brand operations. With a market capitalization of $9.50M and annual revenue of $1.21B, Leslie's, Inc. presents a significant disparity between its revenue generation and its total equity value. This valuation profile suggests the market is pricing the company based on its cash flow generation and asset base rather than traditional earnings multiples, reflecting a complex financial position where revenue scale does not directly correlate with a standard market cap valuation.
Financial Health
The company reported revenue of $1.21B over the trailing twelve months, yet it recorded a net income of $-275,376,992, revealing a severe cost structure where expenses significantly exceed earnings before taxes. Despite the substantial net loss, the company maintains an EBITDA of $38.39M, indicating that operating cash generation remains positive even after accounting for significant non-operating costs or financial charges. Free cash flow stands at $33.00M, which provides a measure of financial flexibility by showing the cash remaining after capital expenditures, allowing the company to manage obligations without relying solely on external financing. Profitability is constrained by wide margins: the gross margin is 34.5%, while the operating margin is -37.8% and the profit margin is -22.7%. The negative operating and profit margins demonstrate that after deducting operating expenses and interest, the company is currently incurring losses on its core operations relative to sales. Liquidity is supported by a cash balance of $3.62M against total debt of $1.02B, creating a situation where the company holds minimal cash relative to its debt obligations. The current ratio of 1.42 indicates that the company possesses 1.42 dollars of current assets for every dollar of current liabilities, suggesting a moderately healthy short-term liquidity position despite the debt load. Return on Equity is N/A due to the company's negative equity position, while Return on Assets sits at 0.4%, reflecting very low efficiency in generating profit from its asset base.
Valuation Assessment
The P/E Ratio (TTM) is N/A because the company reports a net loss, while the Forward P/E is -2.23, a negative multiple that implies future earnings expectations are also currently negative or that the market is not pricing in immediate profitability. The price-to-book ratio is -0.02, indicating that the market capitalization is effectively zero or negative relative to the book value, which suggests the market is discounting the company heavily due to its lack of retained earnings or negative equity. The price-to-sales ratio is 0.01, which is an extremely low multiple compared to the $1.21B in revenue, suggesting the market values the company at a fraction of its sales volume. The EV/EBITDA stands at 26.77, offering an alternative valuation metric that suggests the company is trading at a premium relative to its earnings before interest, taxes, depreciation, and amortization, a common scenario for firms with high debt loads or negative earnings. The stock has a 52-week high of $19.20 and a 52-week low of $0.87, illustrating extreme volatility in its trading range over the past year. Given the low market cap of $9.50M, the current trading price is likely situated well below the 52-week high, reflecting the market's skepticism regarding the company's ability to return to profitability. The beta of 1.31 indicates that the stock is more volatile than the broader market, moving 31% more than the average stock during periods of market fluctuation.
Growth & Income
Revenue growth (YoY) is -16.0%, showing a contraction in sales, while earnings growth (YoY) is N/A due to the recent losses, preventing a direct comparison of earnings velocity against revenue decline. The absence of a positive earnings growth rate implies that the company is currently in a restructuring or transition phase rather than a period of expansion. As a non-dividend payer, the company does not distribute dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the company retains all cash flows to address its debt or operational needs rather than paying shareholders. The overall growth and income profile is characterized by significant revenue contraction and a complete lack of dividend income, positioning the stock as a high-risk speculative investment rather than an income-generating asset.