SWIMLatham Group, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (5.1×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SWIM?
Latham Group, Inc. earns 3.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.4 points below what the capital costs: growth destroys value
- Operating margin
- 5.1%
Operating margin · Building Products & Equipment median 9.3% · 12 months to Q2 2026
- Cash conversion
- 5.11×
Cash conversion · 2.04× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.13%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 9.9% |
| FY2021 | −5.7% |
| FY2022 | 4.3% |
| FY2023 | 2.9% |
| FY2024 | 3.6% |
| FY2025 | 5.6% |
Details›
- Gross margin12 months to Q2 2026
- 33%
- Operating margin12 months to Q2 2026
- 5.1%
- Net margin12 months to Q2 2026
- 0.92%
- Free cash flow margin
- 8.5%
- Revenue, trailing twelve months
- $577M
- Free cash flow, trailing twelve months
- $49M
- Net income, trailing twelve months
- $5.3M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Building Products & Equipment
Ranks #13 of 19 by RyuScore