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%)
Overall PRMW gets a fundamental rating of 5 out of 10. We evaluated PRMW against 34 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 is valued correctly, but it does not seem to be growing.
1. Profitability
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.
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.
The Return On Equity of PRMW (17.34%) is better than 63.64% of its industry peers.
PRMW's Return On Invested Capital of 4.13% is on the low side compared to the rest of the industry. PRMW is outperformed by 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRMW is significantly below the industry average of 11.55%.
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
Looking at the Profit Margin, with a value of 17.64%, PRMW belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
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.
PRMW has a better Gross Margin (68.16%) than 100.00% of its industry peers.
PRMW's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRMW is destroying value.
Compared to 1 year ago, PRMW has about the same amount of shares outstanding.
Compared to 5 years ago, PRMW has more shares outstanding
PRMW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.96 indicates that PRMW is not a great score, but indicates only limited risk for bankruptcy at the moment.
PRMW has a Altman-Z score (1.96) which is in line with its industry peers.
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 69.70% 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.
Looking at the Debt to Equity ratio, with a value of 0.86, PRMW is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.49 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.54
WACC7.61%
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's Current ratio of 2.34 is fine compared to the rest of the industry. PRMW outperforms 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.
PRMW has a Quick ratio of 2.23. This is amongst the best in the industry. PRMW outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 2.23 |
3. Growth
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.
PRMW shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -36.45%.
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.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.32 indicates a quite expensive valuation of PRMW.
Compared to the rest of the industry, the Price/Earnings ratio of PRMW is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.59. PRMW is around the same levels.
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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 21.19 |
4.2 Price Multiples
PRMW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PRMW is cheaper than 60.61% of the companies in the same industry.
PRMW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PRMW is cheaper than 84.85% of the companies in the same industry.
| 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.
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%
5. Dividend
5.1 Amount
PRMW has a Yearly Dividend Yield of 1.34%.
PRMW's Dividend Yield is comparable with the industry average which is at 3.06.
With a Dividend Yield of 1.34, PRMW pays less dividend than the S&P500 average, which is at 2.31.
| 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 their dividend for at least 10 years, which is a reliable track record.
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.
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%
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.