Leslie's, Inc. (LESL) Analysis

This report is auto-generated by an AI stock research platform for informational purposes only. The content is for general information and research reference, and does not constitute financial advice. Data may lag or be incomplete. Always conduct your own research and consult qualified professionals before making any financial decisions. # [Qiltrack AI] Leslie's Inc (LESL) 3-Minute Overview > **💡 One-Sentence Summary** > > Simply put, Leslie’s is a niche retail chain selling pool and spa supplies in the U.S., and right now the story is less about steady quality and more about whether a beaten-down business is finally stabilizing after a very rough stretch. > **📍 Basic Profile** > > Market Cap **$0.01 billion** · Retail · NASDAQ NMS - GLOBAL MARKET · Price **$3.50** > **⚡ 3 Things You Should Know** > > 1. 📈 Violent rebound, but from a very low base: The stock just exploded higher after Q2 2026 revenue beat expectations, comp sales rose 6.6%, and management reiterated guidance—so the market is suddenly repricing the idea that Leslie’s may be surviving, not thriving. > > 2. ⚠️ The core business still looks financially strained: Net margin is **-22.69%**, operating margin is **-16.39%**, and interest coverage is negative, which basically means the company is not currently earning enough to comfortably support its debt load. > > 3. 🏷️ Cheap-looking multiples can be misleading here: A **0.011x P/S** screens absurdly low, but with no positive PE and recent earnings misses, this isn’t a classic bargain bin setup—it’s a turnaround bet where the market is pricing in real business risk. > **🎯 Quick Health Check** > > | Dimension | Rating | Details | > |-----------|--------|---------| > | Profitability | Weak👎 | Net margin -22.69%, currently loss-making | > | Growth Rate | Slow🐢 | 3-year revenue growth -7.36%, though latest quarter improved | > | Financial Health | Tight🧡 | Current ratio 1.42, quick ratio 0.49, negative interest coverage | > | Valuation | Cheap | PE [Data unavailable], PS 0.011x | ### 📋 Layer 2: 2-Minute Deep Dive #### 📊 How Does This Company Make Money? **Business Model in One Sentence:** Pool and spa care products are sold to residential customers and pool professionals, making money through retail product sales and related maintenance categories. **Revenue Breakdown:** | Business | Share | Trend | Comment | |----------|-------|-------|---------| | Pool & spa supplies retail | [Data unavailable] | → | Main business, tied to installed pool base and seasonal spending | | Professional / maintenance-related sales | [Data unavailable] | ↑ | Recent customer count and traffic gains suggest better demand momentum | **Profitability Metrics:** | Metric | Value | Ranking | Interpretation | |--------|-------|---------|----------------| | Gross Margin | 35.04% | Average | Gross margin is still decent for a specialty retailer, so the main issue is below gross profit line | | Net Margin | -22.69% | Below Average | The company is losing money after operating costs and financing burden | | ROE | 6.09% | Average | Positive ROE looks better than underlying earnings, but it does not override the current loss profile | --- #### 📈 How's the Growth? **Growth Assessment:** Slowing, with early signs of stabilization | Metric | Latest | vs Last Year | Trend | |--------|--------|--------------|-------| | Revenue Growth | 4.3% | [Data unavailable] | Improving | | Profit Growth | [Data unavailable] | [Data unavailable] | Still weak | **Growth Quality:** > What’s interesting is the latest quarter looks better on the top line: sales rose 4.3%, comp sales rose 6.6%, and customer count was up 8%. That suggests demand improved in a real way, not just through accounting noise. The catch is profits are still under pressure, so this looks like early operational stabilization rather than a clean turnaround. --- #### 💰 Financial Health Check **One Sentence:** This looks like someone whose paycheck has started improving a bit, but they still have too much debt and not enough cushion in the checking account. | Metric | Value | Safe Zone | Assessment | |--------|-------|-----------|------------| | Debt Ratio | [Data unavailable] | <60% safe | [Data unavailable] | | Current Ratio | 1.42 | >1.5 healthy | ⚠️Tight | | Cash Flow | Positive (cash flow/share 0.54) | >0 | ✅Positive | --- #### 🏷️ Is It Expensive Now? **Price Position (based on 52-week range):** - 52-Week Low: $0.87 - 52-Week High: $18.56 - Current: $3.50, Near the low | Position Range | Cheap Zone | Fair Zone | Pricey Zone | |----------------|------------|-----------|-------------| | Criteria | 0-33% | 33-66% | 66-100% | | **Current** | ●(14.9% position) | | | **Valuation Comparison:** | Comparison | Current | Reference | Assessment | |------------|---------|-----------|------------| | vs Own History | PE [Data unavailable] | 5-year avg [Data unavailable] | [Data unavailable] | | vs Peers | PE [Data unavailable] | Industry avg [Data unavailable] | [Data unavailable] | **What the Current Valuation is Betting On:** > Basically, the stock price is saying the market still has serious doubts, even after the rebound. At this level, investors are betting that the latest traffic and comp-sales recovery is real enough to keep the business afloat and maybe rebuild margins—but not yet pricing in a full return to healthy profitability. --- #### 📰 Any Recent News? | Date | Event | Impact | |------|-------|--------| | 2026-05-13 | Leslie’s reported Q2 2026 results: sales +4.3%, comp sales +6.6%, customer count +8%, and reiterated full-year guidance | Positive — suggests operating momentum improved and management did not cut outlook | | 2026-05-14 | Stock surged more than 100% after revenue beat and traffic gains | Positive — shows sentiment was extremely bearish and got squeezed higher on better-than-feared results | | 2026-05-14 | Wolfe Research maintained Outperform and raised target to $3 | Mildly Positive — some analysts are getting more constructive, though targets still imply caution | | 2026-05-06 | Mizuho maintained Neutral and lowered target to $3.5 | Neutral — even after improvement, Wall Street is not treating this as a clean recovery story yet | ### 📊 Layer 3: Want More? 3-Minute Complete Analysis #### I. Detailed Financial Data **Profitability Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Gross Margin | 35.04% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Net Margin | -22.69% | [Data unavailable] | [Data unavailable] | ↓ | | ROE | 6.09% | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Revenue Growth | 4.3% latest quarter / 3Y CAGR -7.36% | [Data unavailable] | [Data unavailable] | ↓ | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | EPS Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | --- #### II. Earnings Track Record **Last 4 Quarters vs Expectations:** | Quarter | EPS Expected | EPS Actual | Surprise | |---------|--------------|------------|----------| | 2026-03-31 | -4.60 | -5.36 | -16.58% Miss 😟 | | 2025-12-31 | -4.36 | -5.24 | -20.30% Miss 😟 | | 2025-09-30 | 1.33 | 0.09 | -93.23% Miss 😟 | | 2025-06-30 | 5.71 | 4.00 | -29.95% Miss 😟 | **Earnings Trend Interpretation:** Four straight misses is worth noting. In other words, even when revenue starts improving, the company has not been reliably converting that into earnings. That usually means either the cost structure is still messy, financing costs are heavy, or the business is more fragile than the top line alone suggests. --- #### III. What the Market Thinks **Analyst Ratings:** | Rating | Count | Percentage | |--------|-------|------------| | Strong Buy/Buy | 6 firms | 54.5% | | Hold | 5 firms | 45.5% | | Sell | 0 firms | 0.0% | **Target Price:** $3.00 ~ $3.50 (visible recent targets) **vs Current Price:** Roughly in line to slight downside/upside depending on analyst **Insider Activity:** Net mixed activity in past 3 months > Most of the filings shown are option-related grants/exercises (`M`) and tax-related disposals (`F`), not aggressive open-market buying. One separate recent news item mentioned a director purchase, which is more encouraging, but based on the transaction list alone I wouldn’t read this as a strong insider conviction signal yet. --- #### IV. Key Risk Alerts **3 Risks to Watch:** 1. **Balance sheet / debt risk:** Negative interest coverage means operating earnings are not currently covering interest costs → If this continues, refinancing pressure or tighter financial flexibility could become a real problem. 2. **Turnaround risk:** The latest quarter improved, but 3-year revenue growth is still negative and margins remain deeply in the red → If this recovery fades after one good quarter, the stock could give back a lot of its rebound. 3. **Volatility / sentiment risk:** Beta is 1.52 and the stock just moved more than 100% in a day → If you buy this, you’re not buying stability; sharp swings on earnings and guidance are part of the package. ### 🎬 Summary & Next Steps > **📝 Three-Sentence Summary** > > **What it is:** Leslie’s is a specialty pool-and-spa retailer trying to prove it can stabilize after a prolonged downturn. > > **Key strength:** The latest quarter finally showed some encouraging signs—better traffic, higher comp sales, a revenue beat, and reaffirmed guidance. > > **Key risk:** The company is still unprofitable with weak interest coverage, so this remains a fragile turnaround story rather than a healthy retailer trading cheaply. --- > **🔍 Want to Learn More?** > > • Want to know if this company has a strong moat? → Try【Buffett Mode】for deeper analysis > > • Want to check for hidden landmines? → Try【Muddy Mode】for risk screening > > • Is this a growth stock? 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