| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 36.17 | 124 |
| Intrinsic value (DCF) | 6.31 | -61 |
| Graham-Dodd Method | 4.99 | -69 |
| Graham Formula | 7.65 | -53 |
Hayward Holdings, Inc. (NYSE: HAYW) is a leading designer, manufacturer, and marketer of high-performance pool equipment and automation systems, serving residential and commercial markets globally. Founded in 1925 and headquartered in Charlotte, North Carolina, Hayward specializes in energy-efficient pool solutions, including pumps, filters, heaters, LED lighting, IoT-enabled controls, and water sanitization products. The company operates primarily in North America and Europe, distributing its products through specialty distributors, retailers, and buying groups. As a key player in the $10+ billion global pool equipment industry, Hayward leverages its strong brand reputation, technological innovation, and sustainability focus to maintain market leadership. With increasing demand for smart, energy-saving pool solutions, Hayward is well-positioned in the growing residential pool maintenance and automation sector, benefiting from trends in outdoor living and home improvement.
Hayward Holdings presents a compelling investment case as a market leader in the resilient pool equipment industry, supported by strong brand recognition and recurring revenue from replacement demand. The company's focus on IoT-enabled automation and energy-efficient solutions aligns with sustainability trends, providing a competitive edge. However, risks include cyclical exposure to the housing and discretionary spending markets, as well as supply chain and input cost pressures. With a market cap of ~$2.94B, no dividend payout, and moderate leverage (total debt of $975M against $197M cash), Hayward offers growth potential but remains sensitive to macroeconomic conditions affecting consumer spending on pool installations and upgrades.
Hayward maintains a strong competitive position in the pool equipment market through its comprehensive product portfolio, technological leadership in automation, and established distribution network. The company's focus on IoT integration (through its OmniLogic and ProLogic systems) provides differentiation in the growing smart pool equipment segment. Hayward's vertical integration strategy, with in-house manufacturing of key components, enhances quality control and margins compared to competitors relying on third-party suppliers. The company benefits from high brand loyalty among pool professionals, with 80% of its sales coming from replacement/upgrade markets, creating stable recurring revenue. However, Hayward faces intensifying competition in the value segment from Asian manufacturers and must continue innovating to justify its premium positioning. Geographic concentration in North America (~75% of sales) presents both stability and growth limitation compared to more globally diversified peers. The company's recent investments in variable-speed pumps and salt chlorination systems position it well for regulatory trends favoring energy efficiency but require ongoing R&D spending to maintain technological leadership.