Primo Water Corporation (PRMW.CA) Fundamental Analysis & Valuation

TSX:PRMW • CA74167P1080

Current stock price

37.4 CAD
+2.04 (+5.77%)
Last:

This PRMW.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. PRMW.CA Profitability Analysis

1.1 Basic Checks

  • PRMW had positive earnings in the past year.
  • In the past year PRMW had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: PRMW reported negative net income in multiple years.
  • PRMW had a positive operating cash flow in each of the past 5 years.
PRMW.CA Yearly Net Income VS EBIT VS OCF VS FCFPRMW.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M 300M

1.2 Ratios

  • PRMW has a Return On Assets of 7.22%. This is amongst the best in the industry. PRMW outperforms 100.00% of its industry peers.
  • PRMW's Return On Equity of 17.34% is amongst the best of the industry. PRMW outperforms 100.00% of its industry peers.
  • PRMW's Return On Invested Capital of 4.13% is amongst the best of the industry. PRMW outperforms 83.33% of its industry peers.
  • PRMW had an Average Return On Invested Capital over the past 3 years of 3.20%. This is below the industry average of 7.19%.
  • The 3 year average ROIC (3.20%) for PRMW is below the current ROIC(4.13%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.22%
ROE 17.34%
ROIC 4.13%
ROA(3y)2.49%
ROA(5y)0.78%
ROE(3y)6.19%
ROE(5y)1.81%
ROIC(3y)3.2%
ROIC(5y)3.02%
PRMW.CA Yearly ROA, ROE, ROICPRMW.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

1.3 Margins

  • PRMW has a Profit Margin of 17.64%. This is amongst the best in the industry. PRMW outperforms 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of PRMW has declined.
  • Looking at the Operating Margin, with a value of 12.23%, PRMW belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • PRMW's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 68.16%, PRMW belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • PRMW's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.23%
PM (TTM) 17.64%
GM 68.16%
OM growth 3Y10.6%
OM growth 5Y18.86%
PM growth 3YN/A
PM growth 5Y-8.87%
GM growth 3Y4.02%
GM growth 5Y2.34%
PRMW.CA Yearly Profit, Operating, Gross MarginsPRMW.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. PRMW.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRMW is destroying value.
  • The number of shares outstanding for PRMW remains at a similar level compared to 1 year ago.
  • Compared to 1 year ago, PRMW has an improved debt to assets ratio.
PRMW.CA Yearly Shares OutstandingPRMW.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
PRMW.CA Yearly Total Debt VS Total AssetsPRMW.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 3.77 indicates that PRMW is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 3.77, PRMW belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • PRMW has a debt to FCF ratio of 5.49. This is a neutral value as PRMW would need 5.49 years to pay back of all of its debts.
  • The Debt to FCF ratio of PRMW (5.49) is better than 83.33% of its industry peers.
  • PRMW has a Debt/Equity ratio of 0.86. This is a neutral value indicating PRMW is somewhat dependend on debt financing.
  • PRMW has a Debt to Equity ratio of 0.86. This is comparable to the rest of the industry: PRMW outperforms 58.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 5.49
Altman-Z 3.77
ROIC/WACC0.54
WACC7.71%
PRMW.CA Yearly LT Debt VS Equity VS FCFPRMW.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.3 Liquidity

  • PRMW has a Current Ratio of 2.34. This indicates that PRMW is financially healthy and has no problem in meeting its short term obligations.
  • PRMW has a Current ratio (2.34) which is in line with its industry peers.
  • PRMW has a Quick Ratio of 2.23. This indicates that PRMW is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of PRMW (2.23) is better than 83.33% of its industry peers.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 2.23
PRMW.CA Yearly Current Assets VS Current LiabilitesPRMW.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. PRMW.CA Growth Analysis

3.1 Past

  • PRMW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.20%, which is quite good.
  • Measured over the past years, PRMW shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.74% on average per year.
  • The Revenue for PRMW has decreased by -36.45% in the past year. This is quite bad
  • Measured over the past years, PRMW shows a decrease in Revenue. The Revenue has been decreasing by -0.22% on average per year.
EPS 1Y (TTM)12.2%
EPS 3Y15.98%
EPS 5Y22.74%
EPS Q2Q%6.06%
Revenue 1Y (TTM)-36.45%
Revenue growth 3Y-3.2%
Revenue growth 5Y-0.22%
Sales Q2Q%-17.78%

3.2 Future

  • PRMW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.95% yearly.
  • The Revenue is expected to decrease by -0.75% on average over the next years.
EPS Next Y27.83%
EPS Next 2Y21.02%
EPS Next 3Y22.04%
EPS Next 5Y10.95%
Revenue Next Year-18.79%
Revenue Next 2Y-7.32%
Revenue Next 3Y-2.88%
Revenue Next 5Y-0.75%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PRMW.CA Yearly Revenue VS EstimatesPRMW.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B
PRMW.CA Yearly EPS VS EstimatesPRMW.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 0.5 1

More info and screens

Find the best growth stocksShow best growing peers

5

4. PRMW.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 28.99 indicates a quite expensive valuation of PRMW.
  • Based on the Price/Earnings ratio, PRMW is valued cheaper than 83.33% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of PRMW to the average of the S&P500 Index (26.54), we can say PRMW is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 23.41, PRMW is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, PRMW is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
  • PRMW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.99
Fwd PE 23.41
PRMW.CA Price Earnings VS Forward Price EarningsPRMW.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PRMW is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • PRMW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PRMW is cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 43.32
EV/EBITDA 32.56
PRMW.CA Per share dataPRMW.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of PRMW may justify a higher PE ratio.
  • A more expensive valuation may be justified as PRMW's earnings are expected to grow with 22.04% in the coming years.
PEG (NY)1.04
PEG (5Y)1.27
EPS Next 2Y21.02%
EPS Next 3Y22.04%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. PRMW.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.34%, PRMW has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.53, PRMW pays a bit more dividend than its industry peers.
  • PRMW's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.34%

5.2 History

  • The dividend of PRMW has a limited annual growth rate of 1.16%.
  • PRMW has paid a dividend for at least 10 years, which is a reliable track record.
  • PRMW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.16%
Div Incr Years2
Div Non Decr Years11
PRMW.CA Yearly Dividends per sharePRMW.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • PRMW pays out 22.12% of its income as dividend. This is a sustainable payout ratio.
  • PRMW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.12%
EPS Next 2Y21.02%
EPS Next 3Y22.04%
PRMW.CA Yearly Income VS Free CF VS DividendPRMW.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M 300M
PRMW.CA Dividend Payout.PRMW.CA Dividend Payout, showing the Payout Ratio.PRMW.CA Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

PRMW.CA Fundamentals: All Metrics, Ratios and Statistics

Primo Water Corporation

TSX:PRMW (11/12/2024, 7:00:00 PM)

37.4

+2.04 (+5.77%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Industry Strength50.93
Industry Growth63.98
Earnings (Last)11-07
Earnings (Next)N/A
Inst Owners73.03%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.17B
Revenue(TTM)1.46B
Net Income(TTM)257.20M
Analysts82.86
Price Target22.44 (-40%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.34%
Yearly Dividend0.32
Dividend Growth(5Y)1.16%
DP22.12%
Div Incr Years2
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.7%
Min EPS beat(2)1.96%
Max EPS beat(2)13.43%
EPS beat(4)3
Avg EPS beat(4)3.94%
Min EPS beat(4)-29.61%
Max EPS beat(4)29.96%
EPS beat(8)6
Avg EPS beat(8)7.5%
EPS beat(12)8
Avg EPS beat(12)8.05%
EPS beat(16)11
Avg EPS beat(16)10.17%
Revenue beat(2)1
Avg Revenue beat(2)0.77%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)2.11%
Revenue beat(4)2
Avg Revenue beat(4)-5.76%
Min Revenue beat(4)-25.44%
Max Revenue beat(4)2.11%
Revenue beat(8)3
Avg Revenue beat(8)-3.87%
Revenue beat(12)4
Avg Revenue beat(12)-3.03%
Revenue beat(16)6
Avg Revenue beat(16)-2.3%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
Industry RankSector Rank
PE 28.99
Fwd PE 23.41
P/S 6.95
P/FCF 43.32
P/OCF 28.67
P/B 6.84
P/tB N/A
EV/EBITDA 32.56
EPS(TTM)1.29
EY3.45%
EPS(NY)1.6
Fwd EY4.27%
FCF(TTM)0.86
FCFY2.31%
OCF(TTM)1.3
OCFY3.49%
SpS5.38
BVpS5.47
TBVpS-0.87
PEG (NY)1.04
PEG (5Y)1.27
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 7.22%
ROE 17.34%
ROCE 5.69%
ROIC 4.13%
ROICexc 5.25%
ROICexgc 17.26%
OM 12.23%
PM (TTM) 17.64%
GM 68.16%
FCFM 16.05%
ROA(3y)2.49%
ROA(5y)0.78%
ROE(3y)6.19%
ROE(5y)1.81%
ROIC(3y)3.2%
ROIC(5y)3.02%
ROICexc(3y)3.53%
ROICexc(5y)3.28%
ROICexgc(3y)11.83%
ROICexgc(5y)11.37%
ROCE(3y)4.6%
ROCE(5y)4.33%
ROICexgc growth 3Y3.08%
ROICexgc growth 5Y11.87%
ROICexc growth 3Y13.05%
ROICexc growth 5Y18.08%
OM growth 3Y10.6%
OM growth 5Y18.86%
PM growth 3YN/A
PM growth 5Y-8.87%
GM growth 3Y4.02%
GM growth 5Y2.34%
F-Score7
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 5.49
Debt/EBITDA 3.84
Cap/Depr 78.79%
Cap/Sales 8.2%
Interest Coverage 3.21
Cash Conversion 107.09%
Profit Quality 90.98%
Current Ratio 2.34
Quick Ratio 2.23
Altman-Z 3.77
F-Score7
WACC7.71%
ROIC/WACC0.54
Cap/Depr(3y)80.99%
Cap/Depr(5y)73.85%
Cap/Sales(3y)8.7%
Cap/Sales(5y)7.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.2%
EPS 3Y15.98%
EPS 5Y22.74%
EPS Q2Q%6.06%
EPS Next Y27.83%
EPS Next 2Y21.02%
EPS Next 3Y22.04%
EPS Next 5Y10.95%
Revenue 1Y (TTM)-36.45%
Revenue growth 3Y-3.2%
Revenue growth 5Y-0.22%
Sales Q2Q%-17.78%
Revenue Next Year-18.79%
Revenue Next 2Y-7.32%
Revenue Next 3Y-2.88%
Revenue Next 5Y-0.75%
EBIT growth 1Y1.94%
EBIT growth 3Y7.06%
EBIT growth 5Y18.6%
EBIT Next Year86.15%
EBIT Next 3Y30.95%
EBIT Next 5Y15.23%
FCF growth 1Y367.07%
FCF growth 3Y56.46%
FCF growth 5Y60.54%
OCF growth 1Y31.01%
OCF growth 3Y25.74%
OCF growth 5Y19.02%

Primo Water Corporation / PRMW.CA Fundamental Analysis FAQ

What is the fundamental rating for PRMW stock?

ChartMill assigns a fundamental rating of 6 / 10 to PRMW.CA.


What is the valuation status for PRMW stock?

ChartMill assigns a valuation rating of 5 / 10 to Primo Water Corporation (PRMW.CA). This can be considered as Fairly Valued.


How profitable is Primo Water Corporation (PRMW.CA) stock?

Primo Water Corporation (PRMW.CA) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for PRMW stock?

The Price/Earnings (PE) ratio for Primo Water Corporation (PRMW.CA) is 28.99 and the Price/Book (PB) ratio is 6.84.


What is the financial health of Primo Water Corporation (PRMW.CA) stock?

The financial health rating of Primo Water Corporation (PRMW.CA) is 7 / 10.