Primo Water Corporation (PRMW) Fundamental Analysis & Valuation

NYSE:PRMW • CA74167P1080

Current stock price

24.21 USD
-0.23 (-0.94%)
At close:
24.26 USD
+0.05 (+0.21%)
After Hours:

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

6

1. PRMW Profitability Analysis

1.1 Basic Checks

  • In the past year PRMW was profitable.
  • In the past year PRMW had a positive cash flow from operations.
  • In multiple years PRMW reported negative net income over the last 5 years.
  • In the past 5 years PRMW always reported a positive cash flow from operatings.
PRMW Yearly Net Income VS EBIT VS OCF VS FCFPRMW 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

  • With a decent Return On Assets value of 7.22%, PRMW is doing good in the industry, outperforming 60.61% of the companies in the same industry.
  • PRMW has a Return On Equity of 17.34%. This is in the better half of the industry: PRMW outperforms 63.64% of its industry peers.
  • With a Return On Invested Capital value of 4.13%, PRMW is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
  • The Average Return On Invested Capital over the past 3 years for PRMW is significantly below the industry average of 11.81%.
  • The last Return On Invested Capital (4.13%) for PRMW is above the 3 year average (3.20%), which is a sign of increasing profitability.
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 Yearly ROA, ROE, ROICPRMW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

1.3 Margins

  • The Profit Margin of PRMW (17.64%) is better than 81.82% of its industry peers.
  • In the last couple of years the Profit Margin of PRMW has declined.
  • PRMW has a worse Operating Margin (12.23%) than 63.64% of its industry peers.
  • In the last couple of years the Operating Margin of PRMW has grown nicely.
  • PRMW has a better Gross Margin (68.16%) than 100.00% of its industry peers.
  • In the last couple of years the Gross Margin of PRMW has grown nicely.
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 Yearly Profit, Operating, Gross MarginsPRMW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. PRMW 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 Yearly Shares OutstandingPRMW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
PRMW Yearly Total Debt VS Total AssetsPRMW 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

  • PRMW has an Altman-Z score of 1.96. This is not the best score and indicates that PRMW is in the grey zone with still only limited risk for bankruptcy at the moment.
  • PRMW has a Altman-Z score (1.96) which is comparable to the rest of the 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.
  • PRMW has a better Debt to FCF ratio (5.49) than 69.70% of its industry peers.
  • A Debt/Equity ratio of 0.86 indicates that 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 45.45% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 5.49
Altman-Z 1.96
ROIC/WACC0.54
WACC7.61%
PRMW Yearly LT Debt VS Equity VS FCFPRMW 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

  • A Current Ratio of 2.34 indicates that PRMW has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.34, PRMW is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • A Quick Ratio of 2.23 indicates that PRMW has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 2.23, PRMW belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.34
Quick Ratio 2.23
PRMW Yearly Current Assets VS Current LiabilitesPRMW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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

3

3. PRMW Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 12.20% 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 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

  • The Earnings Per Share is expected to grow by 10.95% on average over the next years. This is quite good.
  • Based on estimates for the next years, PRMW will show a decrease in Revenue. The Revenue will decrease by -0.75% on average per year.
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.
  • 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.
PRMW Yearly Revenue VS EstimatesPRMW 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 Yearly EPS VS EstimatesPRMW 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

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5

4. PRMW Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.32 indicates a quite expensive valuation of PRMW.
  • PRMW's Price/Earnings is on the same level as the industry average.
  • PRMW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 21.19 indicates a rather expensive valuation of PRMW.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PRMW.
  • PRMW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 26.32
Fwd PE 21.19
PRMW Price Earnings VS Forward Price EarningsPRMW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 60.61% of the companies in the same industry are more expensive than PRMW, based on the Enterprise Value to EBITDA ratio.
  • 84.85% of the companies in the same industry are more expensive than PRMW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.59
EV/EBITDA 13.63
PRMW Per share dataPRMW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

  • PRMW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of PRMW may justify a higher PE ratio.
  • PRMW's earnings are expected to grow with 22.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)1.16
EPS Next 2Y21.02%
EPS Next 3Y22.04%

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

6

5. PRMW 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 1.75, PRMW has a dividend in line with its industry peers.
  • PRMW's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
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 been paying a dividend for at least 10 years, so it has 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 Yearly Dividends per sharePRMW 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

  • 22.12% of the earnings are spent on dividend by PRMW. This is a low number and sustainable payout ratio.
  • The dividend of PRMW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.12%
EPS Next 2Y21.02%
EPS Next 3Y22.04%
PRMW Yearly Income VS Free CF VS DividendPRMW 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 Dividend Payout.PRMW Dividend Payout, showing the Payout Ratio.PRMW Dividend Payout.PayoutRetained Earnings

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PRMW Fundamentals: All Metrics, Ratios and Statistics

Primo Water Corporation

NYSE:PRMW (11/8/2024, 8:15:10 PM)

After market: 24.26 +0.05 (+0.21%)

24.21

-0.23 (-0.94%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)11-07
Earnings (Next)N/A
Inst Owners89.04%
Inst Owner Change0%
Ins Owners2.23%
Ins Owner Change0%
Market Cap3.88B
Revenue(TTM)1.46B
Net Income(TTM)257.20M
Analysts82.86
Price Target17.35 (-28.34%)
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 26.32
Fwd PE 21.19
P/S 2.66
P/FCF 16.59
P/OCF 10.98
P/B 2.62
P/tB N/A
EV/EBITDA 13.63
EPS(TTM)0.92
EY3.8%
EPS(NY)1.14
Fwd EY4.72%
FCF(TTM)1.46
FCFY6.03%
OCF(TTM)2.2
OCFY9.11%
SpS9.09
BVpS9.25
TBVpS-1.47
PEG (NY)0.95
PEG (5Y)1.16
Graham NumberN/A
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 1.96
F-Score7
WACC7.61%
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 Fundamental Analysis FAQ

What is the fundamental rating for PRMW stock?

ChartMill assigns a fundamental rating of 5 / 10 to PRMW.


What is the valuation status for PRMW stock?

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


How profitable is Primo Water Corporation (PRMW) stock?

Primo Water Corporation (PRMW) has a profitability rating of 6 / 10.


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

The Price/Earnings (PE) ratio for Primo Water Corporation (PRMW) is 26.32 and the Price/Book (PB) ratio is 2.62.


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

The financial health rating of Primo Water Corporation (PRMW) is 6 / 10.