PRIMO BRANDS CORP (PRMB) Stock Fundamental Analysis
NYSE:PRMB - New York Stock Exchange, Inc. - US7416231022 - Common Stock - Currency: USD
Taking everything into account, PRMB scores 3 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PRMB had negative 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 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.
PRMB had an Average Return On Invested Capital over the past 3 years of 57.52%. This is significantly above the industry average of 11.37%.
The last Return On Invested Capital (4.66%) for PRMB is well below the 3 year average (57.52%), which needs to be investigated, but indicates that PRMB had better years and this may not be a problem.
| 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.
PRMB has a worse Gross Margin (31.47%) than 84.85% 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.
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.
PRMB has a worse debt/assets ratio than last year.
2.2 Solvency
PRMB has an Altman-Z score of 1.34. This is a bad value and indicates that PRMB is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PRMB (1.34) is worse than 69.70% 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.
The Debt to FCF ratio of PRMB (22.50) is worse than 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's Debt to Equity ratio of 1.49 is on the low side compared to the rest of the industry. PRMB is outperformed by 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 22.5 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.44
WACC10.6%
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.
With a Current ratio value of 1.07, PRMB is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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.
PRMB has a better Quick ratio (0.87) than 60.61% of its industry peers.
| 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%.
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
Based on estimates for the next years, PRMB will show a very strong growth in Earnings Per Share. The EPS will grow by 32.14% on average per year.
Based on estimates for the next years, PRMB will show a small growth in Revenue. The Revenue will grow by 3.77% on average per year.
EPS Next Y71.04%
EPS Next 2Y41.54%
EPS Next 3Y32.14%
EPS Next 5YN/A
Revenue Next Year3.08%
Revenue Next 2Y3.6%
Revenue Next 3Y3.77%
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
PRMB reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 16.21, the valuation of PRMB can be described as correct.
66.67% of the companies in the same industry are more expensive than PRMB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PRMB to the average of the S&P500 Index (22.19), we can say PRMB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PRMB.
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 | 50.89 | ||
| EV/EBITDA | 16.25 |
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 32.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.54%
EPS Next 3Y32.14%
5. Dividend
5.1 Amount
PRMB has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.35, PRMB has a dividend in line with its industry peers.
With a Dividend Yield of 1.33, PRMB pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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
PRMB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of PRMB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-3900%
EPS Next 2Y41.54%
EPS Next 3Y32.14%
30.31
+0.3 (+1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners92.13%
Inst Owner Change43.42%
Ins Owners0.21%
Ins Owner Change-0.09%
Market Cap11.41B
Analysts83.75
Price Target43.29 (42.82%)
Short Float %3.81%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)-1.67%
PT rev (3m)-1.29%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-2.67%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.21 | ||
| P/S | 2.21 | ||
| P/FCF | 50.89 | ||
| P/OCF | 25.66 | ||
| P/B | 3.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.25 |
EPS(TTM)-0.05
EYN/A
EPS(NY)1.87
Fwd EY6.17%
FCF(TTM)0.6
FCFY1.97%
OCF(TTM)1.18
OCFY3.9%
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 | 1.34 |
F-Score3
WACC10.6%
ROIC/WACC0.44
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 Y71.04%
EPS Next 2Y41.54%
EPS Next 3Y32.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-20.37%
Revenue growth 3Y35.45%
Revenue growth 5Y23.47%
Sales Q2Q%1.63%
Revenue Next Year3.08%
Revenue Next 2Y3.6%
Revenue Next 3Y3.77%
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%