PRIMO BRANDS CORP (PRMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRMB - US7416231022 - Common Stock
19.26 USD
+0.21 (+1.1%)
19.18 USD
-0.08 (-0.42%)
PRMB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. PRMB has a bad profitability rating. Also its financial health evaluation is rather negative. PRMB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- PRMB had positive earnings in the past year.
- PRMB had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: PRMB reported negative net income in multiple years.
- Each year in the past 5 years PRMB had a positive operating cash flow.
1.2 Ratios
- PRMB has a worse Return On Assets (-0.15%) than 66.67% of its industry peers.
- PRMB has a Return On Equity of -0.52%. This is in the lower half of the industry: PRMB underperforms 66.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.74%, PRMB is doing worse than 66.67% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PRMB is significantly above the industry average of 11.45%.
- The 3 year average ROIC (57.52%) for PRMB is well above the current ROIC(4.74%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | -0.52% | ||
| ROIC | 4.74% |
ROA(3y)1.7%
ROA(5y)0.27%
ROE(3y)4.23%
ROE(5y)0.54%
ROIC(3y)57.52%
ROIC(5y)35.76%
1.3 Margins
- With a Operating Margin value of 11.08%, PRMB is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of PRMB has grown nicely.
- Looking at the Gross Margin, with a value of 31.47%, PRMB is doing worse than 87.88% of the companies in the same industry.
- PRMB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.08% | ||
| PM (TTM) | N/A | ||
| GM | 31.47% |
OM growth 3Y23.56%
OM growth 5Y14.98%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-17.39%
GM growth 5Y-11.84%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PRMB is creating value.
- The number of shares outstanding for PRMB has been increased compared to 1 year ago.
- The number of shares outstanding for PRMB has been increased compared to 5 years ago.
- PRMB has a worse debt/assets ratio than last year.
2.2 Solvency
- PRMB has an Altman-Z score of 0.95. This is a bad value and indicates that PRMB is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.95, PRMB is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- PRMB has a debt to FCF ratio of 14.85. This is a negative value and a sign of low solvency as PRMB would need 14.85 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 14.85, PRMB is doing worse than 72.73% of the companies in the same industry.
- A Debt/Equity ratio of 1.59 is on the high side and indicates that PRMB has dependencies on debt financing.
- PRMB has a worse Debt to Equity ratio (1.59) than 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 14.85 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.55
WACC8.61%
2.3 Liquidity
- PRMB has a Current Ratio of 1.02. This is a normal value and indicates that PRMB is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of PRMB (1.02) is worse than 69.70% of its industry peers.
- A Quick Ratio of 0.86 indicates that PRMB may have some problems paying its short term obligations.
- PRMB has a Quick ratio of 0.86. This is in the better half of the industry: PRMB outperforms 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 29.35% over the past year.
- Measured over the past years, PRMB shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.13% on average per year.
- PRMB shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.37%.
- Measured over the past years, PRMB shows a very strong growth in Revenue. The Revenue has been growing by 23.47% on average per year.
EPS 1Y (TTM)29.35%
EPS 3Y18.42%
EPS 5Y27.13%
EPS Q2Q%17.14%
Revenue 1Y (TTM)-20.37%
Revenue growth 3Y35.45%
Revenue growth 5Y23.47%
Sales Q2Q%245.35%
3.2 Future
- Based on estimates for the next years, PRMB will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.37% on average per year.
- Based on estimates for the next years, PRMB will show a small growth in Revenue. The Revenue will grow by 2.18% on average per year.
EPS Next Y39.76%
EPS Next 2Y21.07%
EPS Next 3Y22.32%
EPS Next 5Y19.37%
Revenue Next Year-2.39%
Revenue Next 2Y-0.66%
Revenue Next 3Y0.78%
Revenue Next 5Y2.18%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 16.18, the valuation of PRMB can be described as correct.
- PRMB's Price/Earnings ratio is a bit cheaper when compared to the industry. PRMB is cheaper than 69.70% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, PRMB is valued a bit cheaper.
- PRMB is valuated correctly with a Price/Forward Earnings ratio of 14.13.
- PRMB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PRMB is cheaper than 75.76% of the companies in the same industry.
- PRMB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.18 | ||
| Fwd PE | 14.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PRMB is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, PRMB is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.82 | ||
| EV/EBITDA | 9.83 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- PRMB's earnings are expected to grow with 22.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)0.6
EPS Next 2Y21.07%
EPS Next 3Y22.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.16%, PRMB has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.73, PRMB pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PRMB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
- On average, the dividend of PRMB grows each year by 56.90%, which is quite nice.
- PRMB has been paying a dividend for over 5 years, so it has already some track record.
- PRMB has decreased its dividend recently.
Dividend Growth(5Y)56.9%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- PRMB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- PRMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-4178.05%
EPS Next 2Y21.07%
EPS Next 3Y22.32%
PRIMO BRANDS CORP / PRMB FAQ
Can you provide the ChartMill fundamental rating for PRIMO BRANDS CORP?
ChartMill assigns a fundamental rating of 4 / 10 to PRMB.
What is the valuation status of PRIMO BRANDS CORP (PRMB) stock?
ChartMill assigns a valuation rating of 6 / 10 to PRIMO BRANDS CORP (PRMB). This can be considered as Fairly Valued.
What is the profitability of PRMB stock?
PRIMO BRANDS CORP (PRMB) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for PRMB stock?
The Earnings per Share (EPS) of PRIMO BRANDS CORP (PRMB) is expected to grow by 39.76% in the next year.
Is the dividend of PRIMO BRANDS CORP sustainable?
The dividend rating of PRIMO BRANDS CORP (PRMB) is 3 / 10 and the dividend payout ratio is -4178.05%.