PRIMO BRANDS CORP (PRMB) Stock Fundamental Analysis
NYSE:PRMB - New York Stock Exchange, Inc. - US7416231022 - Common Stock - Currency: USD
Overall PRMB gets a fundamental rating of 3 out of 10. We evaluated PRMB against 33 industry peers in the Beverages industry. PRMB may be in some trouble as it scores bad on both profitability and health. PRMB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PRMB had negative 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.
Each year in the past 5 years PRMB had a positive operating cash flow.
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 72.73% of its industry peers.
Looking at the Return On Equity, with a value of -0.49%, PRMB is doing worse than 72.73% of the companies in the same industry.
PRMB has a worse Return On Invested Capital (4.66%) than 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRMB is significantly above the industry average of 11.44%.
The 3 year average ROIC (57.52%) for PRMB is well above the current ROIC(4.66%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | -0.49% | ||
| ROIC | 4.66% |
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 in line with its industry, outperforming 48.48% of the companies in the same industry.
PRMB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.47%, PRMB is not doing good in the industry: 84.85% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of PRMB has declined.
| 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
PRMB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 1.42, we must say that PRMB is in the distress zone and has some risk of bankruptcy.
PRMB has a Altman-Z score of 1.42. This is in the lower half of the industry: PRMB underperforms 66.67% of its industry peers.
PRMB has a debt to FCF ratio of 22.50. This is a negative value and a sign of low solvency as PRMB would need 22.50 years to pay back of all of its debts.
PRMB has a Debt to FCF ratio of 22.50. This is in the lower half of the industry: PRMB underperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.49 is on the high side and indicates that PRMB has dependencies on debt financing.
PRMB has a Debt to Equity ratio of 1.49. This is in the lower half of the industry: PRMB underperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 22.5 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.53
WACC8.84%
2.3 Liquidity
PRMB has a Current Ratio of 1.07. This is a normal value and indicates that PRMB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.07, PRMB is doing worse than 66.67% of the companies in the same industry.
PRMB has a Quick Ratio of 1.07. This is a bad value and indicates that PRMB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.87, PRMB perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.87 |
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%N/A
Revenue 1Y (TTM)-20.37%
Revenue growth 3Y35.45%
Revenue growth 5Y23.47%
Sales Q2Q%1.63%
3.2 Future
PRMB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.88% yearly.
Based on estimates for the next years, PRMB will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y71.31%
EPS Next 2Y42.82%
EPS Next 3Y32.88%
EPS Next 5YN/A
Revenue Next Year3.17%
Revenue Next 2Y3.66%
Revenue Next 3Y3.81%
Revenue Next 5YN/A
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
PRMB reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 17.37 indicates a rather expensive valuation of PRMB.
Based on the Price/Forward Earnings ratio, PRMB is valued a bit cheaper than 69.70% of the companies in the same industry.
PRMB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PRMB.
PRMB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.52 | ||
| EV/EBITDA | 17.31 |
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.
A more expensive valuation may be justified as PRMB's earnings are expected to grow with 32.88% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.82%
EPS Next 3Y32.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, PRMB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.90, PRMB has a dividend in line with its industry peers.
With a Dividend Yield of 1.22, PRMB pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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
The earnings of PRMB are negative and hence is the payout ratio. PRMB will probably not be able to sustain this dividend level.
PRMB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-3900%
EPS Next 2Y42.82%
EPS Next 3Y32.88%
33.07
+0.24 (+0.73%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change43.42%
Ins OwnersN/A
Ins Owner Change3.34%
Market Cap12.45B
Analysts82.86
Price Target44.03 (33.14%)
Short Float %3.05%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend2.28
Dividend Growth(5Y)56.9%
DP-3900%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.88%
Min EPS beat(2)-29.19%
Max EPS beat(2)25.43%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-7.76%
Min Revenue beat(2)-13.38%
Max Revenue beat(2)-2.14%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)N/A
EPS NQ rev (1m)2.38%
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.55%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-1.52%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.37 | ||
| P/S | 2.42 | ||
| P/FCF | 55.52 | ||
| P/OCF | 27.99 | ||
| P/B | 3.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.31 |
EPS(TTM)-0.05
EYN/A
EPS(NY)1.9
Fwd EY5.76%
FCF(TTM)0.6
FCFY1.8%
OCF(TTM)1.18
OCFY3.57%
SpS13.69
BVpS8.85
TBVpS-9.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.15% | ||
| ROE | -0.49% | ||
| ROCE | 5.9% | ||
| ROIC | 4.66% | ||
| ROICexc | 4.89% | ||
| ROICexgc | 18.1% | ||
| OM | 11.08% | ||
| PM (TTM) | N/A | ||
| GM | 31.47% | ||
| FCFM | 4.35% |
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%
ROICexcg growth 3Y16.74%
ROICexcg 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 | 1.49 | ||
| Debt/FCF | 22.5 | ||
| Debt/EBITDA | 5.05 | ||
| Cap/Depr | 53.3% | ||
| Cap/Sales | 4.28% | ||
| Interest Coverage | 1.41 | ||
| Cash Conversion | 45.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.42 |
F-Score3
WACC8.84%
ROIC/WACC0.53
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%N/A
EPS Next Y71.31%
EPS Next 2Y42.82%
EPS Next 3Y32.88%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.37%
Revenue growth 3Y35.45%
Revenue growth 5Y23.47%
Sales Q2Q%1.63%
Revenue Next Year3.17%
Revenue Next 2Y3.66%
Revenue Next 3Y3.81%
Revenue Next 5YN/A
EBIT growth 1Y-91.15%
EBIT growth 3Y67.36%
EBIT growth 5Y41.97%
EBIT Next Year139.12%
EBIT Next 3Y39.93%
EBIT Next 5YN/A
FCF growth 1Y86.21%
FCF growth 3Y42.64%
FCF growth 5Y15.11%
OCF growth 1Y52.14%
OCF growth 3Y22.06%
OCF growth 5Y13.61%