PRIMO BRANDS CORP (PRMB) Stock Fundamental Analysis
NYSE:PRMB - New York Stock Exchange, Inc. - US7416231022 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to PRMB. PRMB was compared to 32 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
In the past year PRMB has reported negative net income.
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
With a Return On Assets value of -0.15%, PRMB is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
With a Return On Equity value of -0.49%, PRMB is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.66%, PRMB is doing worse than 71.88% 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 11.51%.
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
PRMB has a Operating Margin of 11.08%. This is comparable to the rest of the industry: PRMB outperforms 50.00% of its industry peers.
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 84.38% of the companies in the same industry.
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.
PRMB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PRMB has been increased compared to 5 years ago.
The debt/assets ratio for PRMB is higher compared to a year ago.
2.2 Solvency
PRMB has an Altman-Z score of 1.26. This is a bad value and indicates that PRMB is not financially healthy and even has some risk of bankruptcy.
PRMB has a Altman-Z score of 1.26. This is in the lower half of the industry: PRMB underperforms 65.63% 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 worse Debt to FCF ratio (22.50) than 65.63% 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 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 22.5 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.53
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.07 indicates that PRMB should not have too much problems paying its short term obligations.
PRMB has a worse Current ratio (1.07) than 68.75% of its industry peers.
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 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
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)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 31.93% yearly.
Based on estimates for the next years, PRMB will show a small growth in Revenue. The Revenue will grow by 3.71% on average per year.
EPS Next Y71.4%
EPS Next 2Y41.39%
EPS Next 3Y31.93%
EPS Next 5YN/A
Revenue Next Year3.04%
Revenue Next 2Y3.55%
Revenue Next 3Y3.71%
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 negative for PRMB. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 14.50 indicates a correct valuation of PRMB.
Based on the Price/Forward Earnings ratio, PRMB is valued a bit cheaper than 78.13% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRMB to the average of the S&P500 Index (36.21), we can say PRMB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRMB is on the same level as its industry peers.
PRMB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.42 | ||
| EV/EBITDA | 15.22 |
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 31.93% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.39%
EPS Next 3Y31.93%
5. Dividend
5.1 Amount
PRMB has a Yearly Dividend Yield of 1.39%.
Compared to an average industry Dividend Yield of 2.70, PRMB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, PRMB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
The dividend of PRMB is nicely growing with an annual growth rate of 56.90%!
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-3900%
EPS Next 2Y41.39%
EPS Next 3Y31.93%
27.05
-0.56 (-2.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners92.13%
Inst Owner Change1.06%
Ins Owners0.21%
Ins Owner Change1.95%
Market Cap10.18B
Analysts83.53
Price Target42.33 (56.49%)
Short Float %3.42%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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)-2.23%
PT rev (3m)-3.86%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)-0.05%
EPS NY rev (1m)0.21%
EPS NY rev (3m)2.6%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.5 | ||
| P/S | 1.98 | ||
| P/FCF | 45.42 | ||
| P/OCF | 22.9 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.22 |
EPS(TTM)-0.05
EYN/A
EPS(NY)1.87
Fwd EY6.9%
FCF(TTM)0.6
FCFY2.2%
OCF(TTM)1.18
OCFY4.37%
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 | 1.26 |
F-Score3
WACC8.78%
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 Y71.4%
EPS Next 2Y41.39%
EPS Next 3Y31.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.37%
Revenue growth 3Y35.45%
Revenue growth 5Y23.47%
Sales Q2Q%1.63%
Revenue Next Year3.04%
Revenue Next 2Y3.55%
Revenue Next 3Y3.71%
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%