Latham Group, Inc. (SWIM) AI Stock Analysis
SWIM AI stock analysis summary
AI ResearchLatham Group, Inc. (SWIM) designs and distributes in-ground residential swimming pools, pool covers, and pool liners. After revenue contractions in FY2023 and FY2024, the company returned to positive top-line growth of 7.4% in FY2025 and delivered $11.1M in net income. Over the trailing twelve months, revenue reached $576.6M with an operating margin of 14.1%, while carrying net debt of $267.5M.
- Market cap
- $720.0M
- Revenue (TTM)
- $576.6M
- P/E
- 122.4x
- 1Y return
- -17.7% S&P 500 16.8%
- Avg. target
- $8.53 39.3% vs last close
Bull case
- Annual revenue rebounded 7.4% in FY2025 to $545.9M, lifting net income back into positive territory at $11.1M.
- The company generated $26.0M of free cash flow in FY2025, supporting a healthy current ratio of 2.16 as of June 30, 2026.
- Analyst estimates call for 34.7% EPS growth in FY2026 to $0.21, accompanied by a mean price target of $8.53.
Bear case
- Trailing P/E sits at an elevated 122.4x against trailing twelve-month profit margins of just 0.9%.
- Total debt stands at $311.0M against $43.5M in cash, leaving net debt at $267.5M as of June 30, 2026.
- SWIM has underperformed broader markets with a 1-year return of -17.7% and a 5-year decline of 53.6%.
What Latham does
Headquartered in Latham, New York, Latham Group, Inc. specializes in the design, production, and distribution of in-ground residential swimming pools across North America, Australia, and New Zealand. Its product portfolio features premium in-ground pools, pool covers, and pool liners for residential homeowners. Originally known as Latham Topco, Inc. before rebranding in March 2021, the company was founded in 2018 and operates through a network of distributors and service providers to supply customizable and durable swimming pool solutions.
Growth and profitability
Latham Group generated $545.9M in FY2025 revenue, representing 7.4% growth compared to declines of 18.6% in FY2023 and 10.2% in FY2024. Gross margin improved to 33.4% in FY2025 from 30.2% in FY2024, and operating margin rose to 5.6%. FY2025 net income reached $11.1M with EPS of $0.11, following a net loss of $17.9M in FY2024. Over the trailing twelve months, revenue totaled $576.6M with a profit margin of 0.9% and EPS of $0.05. In the latest quarter ended June 30, 2026, quarterly revenue grew 14.4% year-over-year, while quarterly earnings declined 16.5%.
Balance sheet and cash flow
As of June 30, 2026, Latham Group held $43.5M in cash and short-term investments against total debt of $311.0M, resulting in net debt of $267.5M. Shareholders' equity stood at $411.4M, with a debt-to-equity ratio of 0.76 and a current ratio of 2.16. In FY2025, the business generated $51.4M in operating cash flow and $26.0M in free cash flow after funding $25.4M in capital expenditures. Share count increased by 6.5% over 5 years.
Valuation and performance
At $6.12 per share, Latham Group has a market capitalization of $720.0M and an enterprise value of $1.01B. The stock trades at a trailing price-to-earnings ratio of 122.4x, well above the 24.8x median of its US-listed Industrials peers. Its price-to-sales ratio of 1.2x and EV-to-EBITDA of 11.8x compare to sector peer medians of 1.5x and 13.9x, respectively. Over the past year, SWIM fell 17.7%, trailing the S&P 500 (SPY) return of 16.8%, and is down 53.6% over five years compared to an 83.0% gain for the index.
What analysts expect
Wall Street analysts hold 3 Strong Buy, 0 Buy, 2 Hold, 1 Sell, and 1 Strong Sell ratings on SWIM. The mean price target is $8.53, which is 39.3% above the October 16, 2026 closing price of $6.12. For the fiscal year ending December 31, 2026, analysts estimate revenue of $607.9M and EPS of $0.21, reflecting projected EPS growth of 34.7%. For the following fiscal year, 4 analysts project revenue of $644.4M and EPS of $0.30. Latham Group beat EPS estimates in 1 of the last 4 quarters, with next earnings scheduled for November 3, 2026.
Key risks and what to watch
- Quarterly earnings fell 16.5% year-over-year in the quarter ended June 30, 2026, reflecting potential bottom-line volatility.
- Latham Group has beaten EPS estimates in only 1 of the last 4 quarters.
- With a beta of 1.66, the stock exhibits substantially higher price volatility than the broader equity market.
- Carrying $311.0M of total debt creates ongoing leverage risks if residential pool demand slows.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SWIM AI stock analysis
This page is an AI-written research summary of Latham Group, Inc. (SWIM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SWIM income statement, SWIM balance sheet, SWIM key metrics, SWIM analyst forecast, SWIM chart. See the SWIM stock overview for the latest quote and news.
SWIM AI stock analysis FAQ
What is Latham Group's core business?
Latham Group designs, manufactures, and distributes in-ground residential swimming pools, pool covers, and pool liners across North America, Australia, and New Zealand.
Does SWIM pay a dividend?
Latham Group does not currently pay a dividend to common shareholders.
What is Latham Group's debt load?
As of June 30, 2026, Latham Group reported total debt of $311.0M and cash and short-term investments of $43.5M, resulting in net debt of $267.5M.
What are analysts forecasting for Latham Group's earnings?
For the fiscal year ending December 31, 2026, consensus estimates expect EPS of $0.21 on revenue of $607.9M. For the following fiscal year, 4 analysts estimate EPS will increase 42.1% to $0.30 on $644.4M in revenue.