Leslies Inc (LESL, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $1.25 billion. The current price of $6.78 reflects a 3.67% gain over the past week and an impressive 23.27% gain over the past three months. According to GF Value, the stock is currently significantly undervalued at $21.06, compared to a past GF Value of $21.86. This marks a shift from a previous valuation that suggested investors should think twice, as it was considered a possible value trap.
Introduction to Leslies Inc
Leslies Inc is a leading direct-to-consumer pool and spa care brand in the United States. The company offers a wide range of products for residential and commercial pools, including chemicals, equipment, cleaning and maintenance tools, and safety products. With a focus on the U.S. market, Leslies Inc has established itself as a go-to brand for pool and spa care needs. 
Assessing Profitability
Leslies Inc boasts a Profitability Rank of 7/10, indicating a strong position within its industry. The company's operating margin stands at 7.04%, outperforming 67.18% of its peers. While the Return on Equity (ROE) data is not applicable, the Return on Assets (ROA) is at 2.47%, which is better than 52.28% of peers. Furthermore, the Return on Invested Capital (ROIC) is at a healthy 8.69%, surpassing 70.34% of competitors. Over the past decade, Leslies Inc has maintained profitability for six years, demonstrating its resilience and operational efficiency. 
Growth Trajectory of Leslies Inc
The company's Growth Rank is also impressive at 7/10. Leslies Inc has seen a 3-Year Revenue Growth Rate per Share of 9.60%, outpacing 66.28% of its industry peers. The 5-Year Revenue Growth Rate per Share is even more robust at 12.80%, better than 78.97% of peers. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is modest at 0.97%, which still ranks better than 22.69% of peers. The 3-Year EPS without NRI Growth Rate shows a decline of -12.60%, but the 5-Year EPS without NRI Growth Rate has surged by 47.90%, indicating significant improvement and better performance than 93.75% of peers. 
Key Shareholders in Leslies Inc
John Rogers (Trades, Portfolio) is the leading shareholder with 24,987,417 shares, accounting for 13.58% of the company's share percentage. PRIMECAP Management (Trades, Portfolio) holds 976,800 shares, representing 0.53%, while HOTCHKIS & WILEY owns 960,810 shares, or 0.52%. These significant holders play a crucial role in the company's stock performance and can influence its strategic direction.
Competitive Landscape
When compared to its competitors, Leslies Inc holds its ground with a market cap of $1.25 billion. Olaplex Holdings Inc (OLPX, Financial) has a slightly higher market cap of $1.43 billion, while Petco Health and Wellness Co Inc (WOOF, Financial) and ARKO Corp (ARKO, Financial) have market caps of $741.029 million and $922.793 million, respectively. This positioning reflects Leslies Inc's solid standing within the retail - cyclical industry.
Conclusion
In summary, Leslies Inc's stock performance and valuation indicate a company that is significantly undervalued, with a recent surge in stock price suggesting a positive market reassessment. The company's profitability and growth metrics are strong, particularly in comparison to industry peers. The influence of significant shareholders cannot be overlooked, as they may impact future performance and strategic decisions. Finally, when juxtaposed with its competitors, Leslies Inc demonstrates a competitive edge in the market, which could bode well for future growth and profitability.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
