Primo Water Corporation (PRMW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PRMW - CA74167P1080 - Common Stock
24.21 USD
-0.23 (-0.94%)
24.26 USD
+0.05 (+0.21%)
PRMW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. PRMW has only an average score on both its financial health and profitability. PRMW has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years PRMW always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.22%, PRMW is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.34%, PRMW is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
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.
PRMW had an Average Return On Invested Capital over the past 3 years of 3.20%. This is significantly below the industry average of 11.60%.
The 3 year average ROIC (3.20%) for PRMW is below the current ROIC(4.13%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
PRMW's Profit Margin of 17.64% is amongst the best of the industry. PRMW outperforms 81.82% of its industry peers.
In the last couple of years the Profit Margin of PRMW has declined.
PRMW's Operating Margin of 12.23% is on the low side compared to the rest of the industry. PRMW is outperformed by 63.64% of its industry peers.
PRMW's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 68.16%, PRMW belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of PRMW has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRMW is destroying value.
PRMW has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for PRMW has been increased compared to 5 years ago.
Compared to 1 year ago, PRMW has an improved debt to assets ratio.
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 in line with its industry peers.
The Debt to FCF ratio of PRMW is 5.49, which is a neutral value as it means it would take PRMW, 5.49 years of fcf income to pay off all of its debts.
PRMW's Debt to FCF ratio of 5.49 is fine compared to the rest of the industry. PRMW outperforms 69.70% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that PRMW is somewhat dependend on debt financing.
PRMW's Debt to Equity ratio of 0.86 is in line compared to the rest of the industry. PRMW outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.54
WACC7.61%
2.3 Liquidity
A Current Ratio of 2.34 indicates that PRMW has no problem at all paying its short term obligations.
PRMW has a better Current ratio (2.34) than 66.67% of its industry peers.
A Quick Ratio of 2.23 indicates that PRMW has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.23, PRMW belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.20% over the past year.
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.
PRMW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.45%.
PRMW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.22% yearly.
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.
PRMW is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.75% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
With a Price/Earnings ratio of 26.32, PRMW can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as PRMW.
PRMW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.65.
Based on the Price/Forward Earnings ratio of 21.19, the valuation of PRMW can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRMW is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PRMW to the average of the S&P500 Index (34.45), we can say PRMW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 21.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRMW is valued a bit cheaper than the industry average as 60.61% of the companies are valued more expensively.
84.85% of the companies in the same industry are more expensive than PRMW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.59 | ||
| EV/EBITDA | 13.63 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as PRMW's earnings are expected to grow with 22.04% in the coming years.
PEG (NY)0.95
PEG (5Y)1.16
EPS Next 2Y21.02%
EPS Next 3Y22.04%
5. Dividend
5.1 Amount
PRMW has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.12, PRMW has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, PRMW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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
5.3 Sustainability
PRMW pays out 22.12% 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.
DP22.12%
EPS Next 2Y21.02%
EPS Next 3Y22.04%
24.21
-0.23 (-0.94%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 FAQ
What is the fundamental rating for PRMW stock?
ChartMill assigns a fundamental rating of 5 / 10 to PRMW.
Can you provide the valuation status for Primo Water Corporation?
ChartMill assigns a valuation rating of 5 / 10 to Primo Water Corporation (PRMW). This can be considered as Fairly Valued.
What is the profitability of PRMW stock?
Primo Water Corporation (PRMW) has a profitability rating of 6 / 10.
Can you provide the financial health for PRMW stock?
The financial health rating of Primo Water Corporation (PRMW) is 6 / 10.
What is the earnings growth outlook for Primo Water Corporation?
The Earnings per Share (EPS) of Primo Water Corporation (PRMW) is expected to grow by 27.83% in the next year.