PRIMO BRANDS CORP (PRMB) Stock Fundamental Analysis
USA - NYSE:PRMB - US7416231022 - Common Stock
15.53 USD
-0.11 (-0.7%)
15.53 USD
0 (0%)
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. A decent growth rate in combination with a cheap valuation! Better keep an eye on PRMB.
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.
In multiple years PRMB reported negative net income over the last 5 years.
Each year in the past 5 years PRMB had a positive operating cash flow.
1.2 Ratios
PRMB has a Return On Assets of -0.15%. This is in the lower half of the industry: PRMB underperforms 63.64% of its industry peers.
With a Return On Equity value of -0.52%, PRMB is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
PRMB has a Return On Invested Capital of 4.74%. This is in the lower half of the industry: PRMB underperforms 66.67% of its industry peers.
PRMB had an Average Return On Invested Capital over the past 3 years of 57.52%. This is significantly above the industry average of 10.84%.
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
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.
PRMB has a worse Gross Margin (31.47%) than 87.88% of its industry peers.
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.
PRMB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PRMB has a worse debt to assets ratio.
2.2 Solvency
PRMB has an Altman-Z score of 0.86. This is a bad value and indicates that PRMB is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.86, PRMB is doing worse than 75.76% of the companies in the same industry.
The Debt to FCF ratio of PRMB is 14.85, which is on the high side as it means it would take PRMB, 14.85 years of fcf income to pay off 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.
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
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.02 indicates that PRMB should not have too much problems paying its short term obligations.
PRMB has a Current ratio of 1.02. This is in the lower half of the industry: PRMB underperforms 69.70% of its industry peers.
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.
The Quick ratio of PRMB (0.86) 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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.76% yearly.
The Revenue is expected to grow by 3.05% on average over the next years.
EPS Next Y46.11%
EPS Next 2Y33.44%
EPS Next 3Y28.15%
EPS Next 5Y20.76%
Revenue Next Year-0.58%
Revenue Next 2Y1.71%
Revenue Next 3Y2.4%
Revenue Next 5Y3.05%
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
Based on the Price/Earnings ratio of 13.05, the valuation of PRMB can be described as correct.
81.82% of the companies in the same industry are more expensive than PRMB, based on the Price/Earnings ratio.
PRMB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
PRMB is valuated reasonably with a Price/Forward Earnings ratio of 9.35.
84.85% of the companies in the same industry are more expensive than PRMB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.98. PRMB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
PRMB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PRMB is cheaper than 75.76% 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 | 16.93 | ||
| EV/EBITDA | 8.81 |
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 28.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y33.44%
EPS Next 3Y28.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.45%, PRMB has a reasonable but not impressive dividend return.
In the last 3 months the price of PRMB has falen by -37.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
PRMB's Dividend Yield is a higher than the industry average which is at 3.05.
PRMB's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of PRMB is nicely growing with an annual growth rate of 56.90%!
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
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-4178.05%
EPS Next 2Y33.44%
EPS Next 3Y28.15%
15.53
-0.11 (-0.7%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners104.11%
Inst Owner Change5.48%
Ins Owners0.12%
Ins Owner Change9.12%
Market Cap5.80B
Revenue(TTM)5.15B
Net Income(TTM)-16.40M
Analysts80
Price Target32.98 (112.36%)
Short Float %4.46%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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)-4.26%
Min Revenue beat(2)-6.48%
Max Revenue beat(2)-2.05%
Revenue beat(4)0
Avg Revenue beat(4)-6.01%
Min Revenue beat(4)-13.38%
Max Revenue beat(4)-2.05%
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)-6.89%
PT rev (3m)-22.09%
EPS NQ rev (1m)-14.32%
EPS NQ rev (3m)-23.82%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-14.76%
Revenue NQ rev (1m)-3.43%
Revenue NQ rev (3m)-5.87%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 9.35 | ||
| P/S | 1.13 | ||
| P/FCF | 16.93 | ||
| P/OCF | 8.4 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.81 |
EPS(TTM)1.19
EY7.66%
EPS(NY)1.66
Fwd EY10.7%
FCF(TTM)0.92
FCFY5.91%
OCF(TTM)1.85
OCFY11.91%
SpS13.79
BVpS8.46
TBVpS-9.39
PEG (NY)0.28
PEG (5Y)N/A
Graham Number15.05
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
WACC8.5%
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 5Y20.76%
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 5Y3.05%
EBIT growth 1Y-91.15%
EBIT growth 3Y67.36%
EBIT growth 5Y41.97%
EBIT Next Year122.72%
EBIT Next 3Y38.03%
EBIT Next 5Y23.8%
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.