Latham Group, Inc. cash flow to debt ratio of 16.51% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Latham Group, Inc.'s free cash flow has decreased 36.77% from $41.19M last year to $26.05M, signaling decreasing performance

Latham Group, Inc.'s debt to equity ratio is 0.76, which means that the company's assets are unhealthy financed, signaling financial risk.

Latham Group, Inc.'s debt has decreased relative to shareholder equity from 0.80 last year to 0.76 today, signaling strengthened financials

Latham Group, Inc. has a net debt to EBITDA ratio of 2.65x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Latham Group, Inc.'s interest coverage ratio is 1.27, which means that the company struggles to meet interest obligations, signaling financial risk.

Latham Group, Inc.'s profit margin has increased (-126.30%) in the last year from -3.51% to 0.92%, signaling increasing performance

Latham Group, Inc.'s short-term assets of $219.00M exceed its short-term liabilities of $79.14M

Latham Group, Inc.'s return on assets of 0.62% is lower than the 5.00% threshold, indicating inefficient asset utilization

Latham Group, Inc.'s return on equity of 1.31%, is lower than 15.00%, indicating bad performance

Latham Group, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Latham Group, Inc. had positive net income in only 1 out of 5 years, indicating unstable earnings

Latham Group, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Latham Group, Inc. has a free cash flow yield of 3.03%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Latham Group, Inc.'s yearly earnings has increased -162.28% since last year from $-17.86M to $11.12M, signaling increasing performance

Latham Group, Inc.'s yearly revenue has increased 7.35% since last year from $508.52M to $545.91M, signaling increasing performance

ROIC 2.07% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Latham Group, Inc.'s 3-year revenue CAGR of -7.77% is negative, indicating declining revenue over the past 3 years

Latham Group, Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Latham Group, Inc. had positive ROE in only 1 out of 5 years, indicating inconsistent returns on equity

Latham Group, Inc. is overvalued relative to its fair value price of 1.91 based on Discounted Cash Flow model

Latham Group, Inc. has an earnings yield of 0.62%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Latham Group, Inc. is overvalued relative to its fair value price of 5.30 based on EBITDA multiple model

Latham Group, Inc. has an EV/EBITDA ratio of 12.12x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Latham Group, Inc. has insufficient data to evaluate this check.

Latham Group, Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Latham Group, Inc. has a price-to-book ratio of 2.09x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Latham Group, Inc. has a price-to-sales ratio of 1.49x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue