PRIMO BRANDS CORP (PRMB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRMB - US7416231022 - Common Stock
15.69 USD
+0.06 (+0.38%)
15.69 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PRMB. 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
PRMB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRMB has a worse Return On Assets (-0.15%) than 63.64% of its industry peers.
Looking at the Return On Equity, with a value of -0.52%, PRMB is doing worse than 63.64% of the companies in the same industry.
With a Return On Invested Capital value of 4.74%, PRMB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for PRMB is significantly above the industry average of 11.60%.
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
PRMB has a Operating Margin of 11.08%. This is in the lower half of the industry: PRMB underperforms 60.61% of its industry peers.
PRMB's Operating Margin has improved in the last couple of years.
PRMB has a worse Gross Margin (31.47%) than 87.88% of its industry peers.
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.
Compared to 5 years ago, PRMB has more shares outstanding
PRMB has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that PRMB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PRMB (0.86) is worse than 72.73% of its industry peers.
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.
The Debt to FCF ratio of PRMB (14.85) is worse than 72.73% of its industry peers.
A Debt/Equity ratio of 1.59 is on the high side and indicates that PRMB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.59, PRMB is doing worse than 84.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 14.85 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.56
WACC8.43%
2.3 Liquidity
A Current Ratio of 1.02 indicates that PRMB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.02, PRMB is doing worse than 69.70% of the companies in the same industry.
PRMB has a Quick Ratio of 1.02. This is a bad value and indicates that PRMB is not financially healthy enough and could expect problems in meeting its short term obligations.
PRMB has a Quick ratio (0.86) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.86 |
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%17.14%
Revenue 1Y (TTM)-20.37%
Revenue growth 3Y35.45%
Revenue growth 5Y23.47%
Sales Q2Q%245.35%
3.2 Future
PRMB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.81% yearly.
The Revenue is expected to grow by 2.17% on average over the next years.
EPS Next Y46.11%
EPS Next 2Y33.44%
EPS Next 3Y28.15%
EPS Next 5Y16.81%
Revenue Next Year-0.58%
Revenue Next 2Y1.71%
Revenue Next 3Y2.4%
Revenue Next 5Y2.17%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.18, PRMB is valued correctly.
81.82% of the companies in the same industry are more expensive than PRMB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, PRMB is valued a bit cheaper.
With a Price/Forward Earnings ratio of 9.44, the valuation of PRMB can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PRMB is valued cheaper than 84.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRMB to the average of the S&P500 Index (36.56), we can say PRMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 9.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRMB is valued a bit cheaper than 78.79% of the companies in the same industry.
PRMB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PRMB is cheaper than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.96 | ||
| EV/EBITDA | 8.78 |
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 28.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y33.44%
EPS Next 3Y28.15%
5. Dividend
5.1 Amount
PRMB has a Yearly Dividend Yield of 2.56%.
In the last 3 months the price of PRMB has falen by -37.51%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.06, PRMB pays a bit more dividend than its industry peers.
PRMB's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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.
The dividend of PRMB decreased 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 2Y33.44%
EPS Next 3Y28.15%
15.69
+0.06 (+0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners104.11%
Inst Owner Change4.7%
Ins Owners0.12%
Ins Owner Change9.12%
Market Cap5.81B
Revenue(TTM)5.15B
Net Income(TTM)-16.40M
Analysts80
Price Target28.32 (80.5%)
Short Float %4.46%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend2.28
Dividend Growth(5Y)56.9%
DP-4178.05%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.43%
Min EPS beat(2)-15.56%
Max EPS beat(2)10.71%
EPS beat(4)2
Avg EPS beat(4)-2.15%
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)-4.29%
Min Revenue beat(2)-6.48%
Max Revenue beat(2)-2.1%
Revenue beat(4)0
Avg Revenue beat(4)-6.03%
Min Revenue beat(4)-13.38%
Max Revenue beat(4)-2.1%
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)-20.04%
PT rev (3m)-22.22%
EPS NQ rev (1m)-23.21%
EPS NQ rev (3m)-23.8%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)-6.34%
Revenue NQ rev (3m)-6.73%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 9.44 | ||
| P/S | 1.13 | ||
| P/FCF | 16.96 | ||
| P/OCF | 8.41 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.78 |
EPS(TTM)1.19
EY7.58%
EPS(NY)1.66
Fwd EY10.59%
FCF(TTM)0.93
FCFY5.9%
OCF(TTM)1.87
OCFY11.89%
SpS13.91
BVpS8.53
TBVpS-9.47
PEG (NY)0.29
PEG (5Y)N/A
Graham Number15.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | -0.52% | ||
| ROCE | 6% | ||
| ROIC | 4.74% | ||
| ROICexc | 4.96% | ||
| ROICexgc | 18.53% | ||
| OM | 11.08% | ||
| PM (TTM) | N/A | ||
| GM | 31.47% | ||
| FCFM | 6.65% |
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-Score5
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.59 | ||
| Debt/FCF | 14.85 | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 56.02% | ||
| Cap/Sales | 6.76% | ||
| Interest Coverage | 1.15 | ||
| Cash Conversion | 57.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 0.86 |
F-Score5
WACC8.43%
ROIC/WACC0.56
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%17.14%
EPS Next Y46.11%
EPS Next 2Y33.44%
EPS Next 3Y28.15%
EPS Next 5Y16.81%
Revenue 1Y (TTM)-20.37%
Revenue growth 3Y35.45%
Revenue growth 5Y23.47%
Sales Q2Q%245.35%
Revenue Next Year-0.58%
Revenue Next 2Y1.71%
Revenue Next 3Y2.4%
Revenue Next 5Y2.17%
EBIT growth 1Y-91.15%
EBIT growth 3Y67.36%
EBIT growth 5Y41.97%
EBIT Next Year122.72%
EBIT Next 3Y38.03%
EBIT Next 5Y21.86%
FCF growth 1Y40.93%
FCF growth 3Y42.64%
FCF growth 5Y15.11%
OCF growth 1Y93.04%
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 7 / 10 to PRIMO BRANDS CORP (PRMB). This can be considered as Undervalued.
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 46.11% in the next year.