Primo Water Corporation
Primo Water Corporation Fundamental Analysis
Primo Water Corporation (PRMW) shows weak financial fundamentals with a PE ratio of 59.42, profit margin of 3.67%, and ROE of 4.77%. The company generates $1.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PRMW's fundamental strength across five key dimensions:
Efficiency Score
WeakPRMW struggles to generate sufficient returns from assets.
Valuation Score
WeakPRMW trades at a premium to fair value.
Growth Score
ModeratePRMW shows steady but slowing expansion.
Financial Health Score
ExcellentPRMW maintains a strong and stable balance sheet.
Profitability Score
WeakPRMW struggles to sustain strong margins.
Key Financial Metrics
Is PRMW Expensive or Cheap?
P/E Ratio
PRMW trades at 59.42 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PRMW's PEG of 10.50 indicates potential overvaluation.
Price to Book
The market values Primo Water Corporation at 2.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.32 times EBITDA. This is generally considered low.
How Well Does PRMW Make Money?
Net Profit Margin
For every $100 in sales, Primo Water Corporation keeps $3.67 as profit after all expenses.
Operating Margin
Core operations generate 9.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.77 in profit for every $100 of shareholder equity.
ROA
Primo Water Corporation generates $1.84 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Primo Water Corporation produces operating cash flow of $358.84M, showing steady but balanced cash generation.
Free Cash Flow
Primo Water Corporation generates strong free cash flow of $207.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.29 in free cash annually.
FCF Yield
PRMW converts 5.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
59.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How PRMW Stacks Against Its Sector Peers
| Metric | PRMW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 59.42 | 23.25 | Worse (Expensive) |
| ROE | 4.77% | 1240.00% | Weak |
| Net Margin | 3.67% | -9728.00% (disorted) | Weak |
| Debt/Equity | 1.00 | 0.77 | Weak (High Leverage) |
| Current Ratio | 2.03 | 2.54 | Strong Liquidity |
| ROA | 1.84% | -203388.00% (disorted) | Weak |
PRMW outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Primo Water Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility