PRIMO BRANDS CORP (PRMB) Stock Fundamental Analysis
USA - NYSE:PRMB - US7416231022 - Common Stock
22.48 USD
+0.13 (+0.58%)
22.48 USD
0 (0%)
PRMB gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. PRMB has a medium profitability rating, but doesn't score so well on its financial health evaluation. PRMB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PRMB was profitable.
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's Return On Assets of -0.15% is on the low side compared to the rest of the industry. PRMB is outperformed by 65.63% of its industry peers.
PRMB has a worse Return On Equity (-0.51%) than 65.63% of its industry peers.
PRMB has a Return On Invested Capital of 4.68%. This is in the lower half of the industry: PRMB underperforms 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRMB is significantly above the industry average of 10.78%.
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
PRMB has a Operating Margin of 11.08%. This is comparable to the rest of the industry: PRMB outperforms 43.75% of its industry peers.
PRMB's Operating Margin has improved in the last couple of years.
PRMB's Gross Margin of 31.47% is on the low side compared to the rest of the industry. PRMB is outperformed by 87.50% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PRMB is creating value.
Compared to 1 year ago, PRMB has more shares outstanding
The number of shares outstanding for PRMB has been increased compared to 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 1.07. 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 1.07, PRMB is doing worse than 71.88% of the companies in the same industry.
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's Debt to FCF ratio of 20.82 is on the low side compared to the rest of the industry. PRMB is outperformed by 68.75% of its industry peers.
A Debt/Equity ratio of 1.55 is on the high side and indicates that PRMB has dependencies on debt financing.
The Debt to Equity ratio of PRMB (1.55) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 20.82 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.55
WACC8.57%
2.3 Liquidity
PRMB has a Current Ratio of 1.06. This is a normal value and indicates that PRMB is financially healthy and should not expect problems in meeting its short term obligations.
PRMB's Current ratio of 1.06 is on the low side compared to the rest of the industry. PRMB is outperformed by 68.75% of its industry peers.
A Quick Ratio of 0.88 indicates that PRMB may have some problems paying its short term obligations.
The Quick ratio of PRMB (0.88) is comparable to the rest of the 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
PRMB shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.47% yearly.
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
PRMB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.30% yearly.
PRMB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y46.81%
EPS Next 2Y33.1%
EPS Next 3Y28.3%
EPS Next 5YN/A
Revenue Next Year-0.19%
Revenue Next 2Y1.76%
Revenue Next 3Y2.41%
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 is valuated rather expensively with a Price/Earnings ratio of 19.89.
The rest of the industry has a similar Price/Earnings ratio as PRMB.
When comparing the Price/Earnings ratio of PRMB to the average of the S&P500 Index (27.38), we can say PRMB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.60, the valuation of PRMB can be described as correct.
PRMB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PRMB is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRMB to the average of the S&P500 Index (22.86), we can say PRMB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
PRMB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PRMB is cheaper than 62.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRMB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.33 | ||
| EV/EBITDA | 12.11 |
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.
A more expensive valuation may be justified as PRMB's earnings are expected to grow with 28.30% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y33.1%
EPS Next 3Y28.3%
5. Dividend
5.1 Amount
PRMB has a Yearly Dividend Yield of 1.79%. Purely for dividend investing, there may be better candidates out there.
The stock price of PRMB dropped by -25.83% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
PRMB's Dividend Yield is a higher than the industry average which is at 2.98.
Compared to the average S&P500 Dividend Yield of 2.38, PRMB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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-4040.24%
EPS Next 2Y33.1%
EPS Next 3Y28.3%
22.48
+0.13 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners97.28%
Inst Owner Change15.33%
Ins Owners0.21%
Ins Owner Change1.93%
Market Cap8.40B
Analysts82.22
Price Target35.42 (57.56%)
Short Float %2.97%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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)-16.32%
PT rev (3m)-19.24%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-22.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.3%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-4.88%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-3.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.89 | ||
| Fwd PE | 13.6 | ||
| P/S | 1.63 | ||
| P/FCF | 34.33 | ||
| P/OCF | 16.92 | ||
| P/B | 2.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.11 |
EPS(TTM)1.13
EY5.03%
EPS(NY)1.65
Fwd EY7.35%
FCF(TTM)0.65
FCFY2.91%
OCF(TTM)1.33
OCFY5.91%
SpS13.79
BVpS8.69
TBVpS-9.26
PEG (NY)0.42
PEG (5Y)N/A
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%
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 | 1.55 | ||
| 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
WACC8.57%
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 Y46.81%
EPS Next 2Y33.1%
EPS Next 3Y28.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.37%
Revenue growth 3Y35.45%
Revenue growth 5Y23.47%
Sales Q2Q%-3.85%
Revenue Next Year-0.19%
Revenue Next 2Y1.76%
Revenue Next 3Y2.41%
Revenue Next 5YN/A
EBIT growth 1Y-91.15%
EBIT growth 3Y67.36%
EBIT growth 5Y41.97%
EBIT Next Year140%
EBIT Next 3Y40.52%
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%