PRIMO WATER CORP (PRMW)
CA74167P1080 - Common Stock
We assign a fundamental rating of 4 out of 10 to PRMW. PRMW was compared to 33 industry peers in the Beverages industry. Both the profitability and the financial health of PRMW get a neutral evaluation. Nothing too spectacular is happening here. PRMW has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
PRMW had positive earnings in the past year.
PRMW had a positive operating cash flow in the past year.
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.
1.2 Ratios
PRMW has a Return On Assets of 6.76%. This is comparable to the rest of the industry: PRMW outperforms 54.55% of its industry peers.
PRMW has a Return On Equity (16.52%) which is comparable to the rest of the industry.
The Return On Invested Capital of PRMW (3.78%) is worse than 75.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRMW is significantly below the industry average of 12.54%.
The last Return On Invested Capital (3.78%) for PRMW is above the 3 year average (3.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.76% | ||
| ROE | 16.52% | ||
| ROIC | 3.78% |
ROA(3y)2.49%
ROA(5y)0.78%
ROE(3y)6.19%
ROE(5y)1.81%
ROIC(3y)3.2%
ROIC(5y)3.02%
1.3 Margins
PRMW has a Profit Margin of 13.44%. This is in the better half of the industry: PRMW outperforms 66.67% of its industry peers.
PRMW's Profit Margin has declined in the last couple of years.
PRMW has a worse Operating Margin (9.09%) than 69.70% of its industry peers.
In the last couple of years the Operating Margin of PRMW has grown nicely.
PRMW has a Gross Margin of 64.17%. This is amongst the best in the industry. PRMW outperforms 100.00% of its industry peers.
PRMW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.09% | ||
| PM (TTM) | 13.44% | ||
| GM | 64.17% |
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%
2. Health
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 5 years ago, PRMW has more shares outstanding
The debt/assets ratio for PRMW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.87 indicates that PRMW is not a great score, but indicates only limited risk for bankruptcy at the moment.
PRMW has a Altman-Z score (1.87) which is in line with its industry peers.
The Debt to FCF ratio of PRMW is 6.34, which is on the high side as it means it would take PRMW, 6.34 years of fcf income to pay off all of its debts.
PRMW has a Debt to FCF ratio of 6.34. This is in the better half of the industry: PRMW outperforms 60.61% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that PRMW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, PRMW is in line with its industry, outperforming 42.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 6.34 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.51
WACC7.44%
2.3 Liquidity
A Current Ratio of 2.03 indicates that PRMW has no problem at all paying its short term obligations.
PRMW's Current ratio of 2.03 is fine compared to the rest of the industry. PRMW outperforms 60.61% of its industry peers.
PRMW has a Quick Ratio of 1.92. This is a normal value and indicates that PRMW is financially healthy and should not expect problems in meeting its short term obligations.
PRMW's Quick ratio of 1.92 is amongst the best of the industry. PRMW outperforms 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.41% over the past year.
PRMW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.74% yearly.
The Revenue has been growing slightly by 4.64% in the past year.
The Revenue has been decreasing by -0.22% on average over the past years.
EPS 1Y (TTM)29.41%
EPS 3Y15.98%
EPS 5Y22.74%
EPS growth Q2Q111.11%
Revenue 1Y (TTM)4.64%
Revenue growth 3Y-3.2%
Revenue growth 5Y-0.22%
Revenue growth Q2Q-17.29%
3.2 Future
The Earnings Per Share is expected to grow by 6.95% on average over the next years.
Based on estimates for the next years, PRMW will show a decrease in Revenue. The Revenue will decrease by -1.13% on average per year.
EPS Next Y11.81%
EPS Next 2Y15.77%
EPS Next 3Y9.54%
EPS Next 5Y6.95%
Revenue Next Year-19.68%
Revenue Next 2Y-7.82%
Revenue Next 3Y-4.58%
Revenue Next 5Y-1.13%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 24.44, which indicates a rather expensive current valuation of PRMW.
The rest of the industry has a similar Price/Earnings ratio as PRMW.
PRMW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.57, the valuation of PRMW can be described as rather expensive.
PRMW's Price/Forward Earnings ratio is in line with the industry average.
PRMW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 20.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRMW is valued a bit cheaper than 69.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PRMW is valued a bit cheaper than 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.07 | ||
| EV/EBITDA | 11.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PRMW does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.07
PEG (5Y)1.07
EPS Next 2Y15.77%
EPS Next 3Y9.54%
5. Dividend
5.1 Amount
PRMW has a Yearly Dividend Yield of 1.69%.
PRMW's Dividend Yield is comparable with the industry average which is at 2.56.
PRMW's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of PRMW has a limited annual growth rate of 1.16%.
PRMW has been paying a dividend for at least 10 years, so it has a reliable track record.
PRMW has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)1.16%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
PRMW pays out 21.71% of its income as dividend. This is a sustainable payout ratio.
The dividend of PRMW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.71%
EPS Next 2Y15.77%
EPS Next 3Y9.54%
PRIMO WATER CORP
NYSE:PRMW (5/17/2024, 7:21:08 PM)
After market: 21.51 0 (0%)21.51
+0.27 (+1.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 20.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.07
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.76% | ||
| ROE | 16.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.09% | ||
| PM (TTM) | 13.44% | ||
| GM | 64.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)29.41%
EPS 3Y15.98%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.64%
Revenue growth 3Y-3.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y