PRIMO BRANDS CORP (PRMB) Stock Fundamental Analysis
USA - NYSE:PRMB - US7416231022 - Common Stock
22.56 USD
+0.23 (+1.03%)
22.56 USD
0 (0%)
Taking everything into account, PRMB scores 3 out of 10 in our fundamental rating. PRMB was compared to 33 industry peers in the Beverages industry. PRMB has a bad profitability rating. Also its financial health evaluation is rather negative. PRMB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PRMB had positive earnings in the past year.
In the past year PRMB had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PRMB reported negative net income in multiple years.
In the past 5 years PRMB always reported a positive cash flow from operatings.
1.2 Ratios
PRMB's Return On Assets of -0.15% is on the low side compared to the rest of the industry. PRMB is outperformed by 69.70% of its industry peers.
With a Return On Equity value of -0.51%, PRMB is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
PRMB has a Return On Invested Capital of 4.68%. This is in the lower half of the industry: PRMB underperforms 69.70% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRMB is significantly above the industry average of 10.75%.
The 3 year average ROIC (57.52%) for PRMB is well above the current ROIC(4.68%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | -0.51% | ||
| ROIC | 4.68% |
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
Looking at the Operating Margin, with a value of 11.08%, PRMB is doing worse than 63.64% of the companies in the same industry.
PRMB's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PRMB is creating value.
The number of shares outstanding for PRMB has been increased compared to 1 year ago.
PRMB has more shares outstanding than it did 5 years ago.
PRMB has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that PRMB is in the distress zone and has some risk of bankruptcy.
PRMB's Altman-Z score of 1.07 is on the low side compared to the rest of the industry. PRMB is outperformed by 72.73% of its industry peers.
PRMB has a debt to FCF ratio of 20.82. This is a negative value and a sign of low solvency as PRMB would need 20.82 years to pay back of all of its debts.
PRMB has a worse Debt to FCF ratio (20.82) than 72.73% of its industry peers.
PRMB has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
PRMB has a worse Debt to Equity ratio (1.55) than 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 20.82 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.55
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.06 indicates that PRMB should not have too much problems paying its short term obligations.
The Current ratio of PRMB (1.06) is worse than 69.70% of its industry peers.
PRMB has a Quick Ratio of 1.06. This is a bad value and indicates that PRMB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.88, PRMB is in line with its industry, outperforming 57.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Revenue for PRMB has decreased by -20.37% in the past year. This is quite bad
The Revenue has been growing by 23.47% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%38.46%
Revenue 1Y (TTM)-20.37%
Revenue growth 3Y35.45%
Revenue growth 5Y23.47%
Sales Q2Q%-3.85%
3.2 Future
The Earnings Per Share is expected to grow by 28.22% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.41% on average over the next years.
EPS Next Y46.45%
EPS Next 2Y33.57%
EPS Next 3Y28.22%
EPS Next 5YN/A
Revenue Next Year-0.52%
Revenue Next 2Y1.72%
Revenue Next 3Y2.41%
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings ratio is 19.96, which indicates a rather expensive current valuation of PRMB.
The rest of the industry has a similar Price/Earnings ratio as PRMB.
PRMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
PRMB is valuated correctly with a Price/Forward Earnings ratio of 13.55.
Based on the Price/Forward Earnings ratio, PRMB is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
PRMB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 13.55 |
4.2 Price Multiples
PRMB's Enterprise Value to EBITDA is on the same level as the industry average.
PRMB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.45 | ||
| EV/EBITDA | 12.13 |
4.3 Compensation for Growth
PRMB's 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 28.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y33.57%
EPS Next 3Y28.22%
5. Dividend
5.1 Amount
PRMB has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
PRMB's Dividend Yield is comparable with the industry average which is at 3.05.
Compared to the average S&P500 Dividend Yield of 2.30, PRMB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
On average, the dividend of PRMB grows each year by 56.90%, which is quite nice.
PRMB does not have a reliable dividend history as it only pays dividend since a couple or years.
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-4040.24%
EPS Next 2Y33.57%
EPS Next 3Y28.22%
22.56
+0.23 (+1.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners104.11%
Inst Owner Change0.86%
Ins Owners0.12%
Ins Owner Change1.96%
Market Cap8.43B
Revenue(TTM)5.15B
Net Income(TTM)-16399999.999999998
Analysts81.05
Price Target35.42 (57%)
Short Float %5.13%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend2.28
Dividend Growth(5Y)56.9%
DP-4040.24%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.93%
Min EPS beat(2)-15.56%
Max EPS beat(2)25.43%
EPS beat(4)2
Avg EPS beat(4)-1%
Min EPS beat(4)-29.19%
Max EPS beat(4)25.43%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.31%
Min Revenue beat(2)-6.48%
Max Revenue beat(2)-2.14%
Revenue beat(4)1
Avg Revenue beat(4)-4.96%
Min Revenue beat(4)-13.38%
Max Revenue beat(4)2.15%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-16.32%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)-23.48%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-14.56%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-5.39%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.96 | ||
| Fwd PE | 13.55 | ||
| P/S | 1.64 | ||
| P/FCF | 34.45 | ||
| P/OCF | 16.98 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.13 |
EPS(TTM)1.13
EY5.01%
EPS(NY)1.67
Fwd EY7.38%
FCF(TTM)0.65
FCFY2.9%
OCF(TTM)1.33
OCFY5.89%
SpS13.79
BVpS8.69
TBVpS-9.26
PEG (NY)0.43
PEG (5Y)N/A
Graham Number14.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | -0.51% | ||
| ROCE | 5.93% | ||
| ROIC | 4.68% | ||
| ROICexc | 4.89% | ||
| ROICexgc | 17.96% | ||
| OM | 11.08% | ||
| PM (TTM) | N/A | ||
| GM | 31.47% | ||
| FCFM | 4.75% |
ROA(3y)1.7%
ROA(5y)0.27%
ROE(3y)4.23%
ROE(5y)0.54%
ROIC(3y)57.52%
ROIC(5y)35.76%
ROICexc(3y)68.43%
ROICexc(5y)42.36%
ROICexgc(3y)205.58%
ROICexgc(5y)128.38%
ROCE(3y)72.92%
ROCE(5y)45.42%
ROICexgc growth 3Y16.74%
ROICexgc growth 5Y13.72%
ROICexc growth 3Y16.69%
ROICexc growth 5Y10.93%
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%
F-Score3
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 20.82 | ||
| Debt/EBITDA | 4.65 | ||
| Cap/Depr | 49.44% | ||
| Cap/Sales | 4.89% | ||
| Interest Coverage | 1.28 | ||
| Cash Conversion | 45.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.07 |
F-Score3
WACC8.48%
ROIC/WACC0.55
Cap/Depr(3y)75.48%
Cap/Depr(5y)72.25%
Cap/Sales(3y)5.32%
Cap/Sales(5y)6.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)N/A
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%38.46%
EPS Next Y46.45%
EPS Next 2Y33.57%
EPS Next 3Y28.22%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.37%
Revenue growth 3Y35.45%
Revenue growth 5Y23.47%
Sales Q2Q%-3.85%
Revenue Next Year-0.52%
Revenue Next 2Y1.72%
Revenue Next 3Y2.41%
Revenue Next 5YN/A
EBIT growth 1Y-91.15%
EBIT growth 3Y67.36%
EBIT growth 5Y41.97%
EBIT Next Year122.72%
EBIT Next 3Y38.03%
EBIT Next 5YN/A
FCF growth 1Y62.52%
FCF growth 3Y42.64%
FCF growth 5Y15.11%
OCF growth 1Y64.15%
OCF growth 3Y22.06%
OCF growth 5Y13.61%
PRIMO BRANDS CORP / PRMB FAQ
Can you provide the ChartMill fundamental rating for PRIMO BRANDS CORP?
ChartMill assigns a fundamental rating of 3 / 10 to PRMB.
Can you provide the valuation status for PRIMO BRANDS CORP?
ChartMill assigns a valuation rating of 5 / 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.
What is the financial health of PRIMO BRANDS CORP (PRMB) stock?
The financial health rating of PRIMO BRANDS CORP (PRMB) is 1 / 10.
What is the expected EPS growth for PRIMO BRANDS CORP (PRMB) stock?
The Earnings per Share (EPS) of PRIMO BRANDS CORP (PRMB) is expected to grow by 46.45% in the next year.