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%)
Taking everything into account, PRMW scores 5 out of 10 in our fundamental rating. PRMW was compared to 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PRMW was profitable.
PRMW had a positive operating cash flow in the past year.
In multiple years PRMW reported negative net income over the last 5 years.
PRMW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRMW has a better Return On Assets (7.22%) than 60.61% of its industry peers.
PRMW's Return On Equity of 17.34% is fine compared to the rest of the industry. PRMW outperforms 63.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.13%, PRMW is doing worse than 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PRMW is significantly below the industry average of 11.60%.
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 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
With an excellent Profit Margin value of 17.64%, PRMW belongs to the best 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.
The Operating Margin of PRMW (12.23%) is worse than 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
PRMW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PRMW remains at a similar level compared to 1 year ago.
PRMW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PRMW has been reduced compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 5.49, PRMW is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
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 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.
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 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.
The Earnings Per Share has been growing by 22.74% on average over the past years. This is a very strong growth
Looking at the last year, PRMW shows a very negative growth in Revenue. The Revenue has decreased by -36.45% in the last year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.32, PRMW can be considered very expensive at the moment.
PRMW's Price/Earnings ratio is in line with the industry average.
PRMW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
PRMW is valuated rather expensively with a Price/Forward Earnings ratio of 21.19.
The rest of the industry has a similar Price/Forward Earnings ratio as PRMW.
When comparing the Price/Forward Earnings ratio of PRMW to the average of the S&P500 Index (36.10), we can say PRMW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 21.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRMW indicates a somewhat cheap valuation: PRMW is cheaper than 60.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PRMW is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.59 | ||
| EV/EBITDA | 13.63 |
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.
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
With a Yearly Dividend Yield of 1.34%, PRMW has a reasonable but not impressive dividend return.
PRMW's Dividend Yield is comparable with the industry average which is at 3.07.
With a Dividend Yield of 1.34, PRMW pays less dividend than the S&P500 average, which is at 2.32.
| 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 paid a dividend for at least 10 years, which is 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
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%
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.