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PRMW

Primo WaterTSX:PRMW Stock Report

Last Price

CA$21.70

Market Cap

CA$3.5b

7D

0.6%

1Y

5.2%

Updated

19 Jan, 2022

Data

Company Financials +
PRMW fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends1/6

PRMW Stock Overview

Primo Water Corporation provides water direct to consumers and water filtration services in North America, Europe, and Israel.

Primo Water Competitors

Nestlé

SWX:NESN

CHF330.5b

Coca-Cola

NYSE:KO

US$263.5b

PepsiCo

NasdaqGS:PEP

US$245.1b

General Mills

NYSE:GIS

US$41.7b

Price History & Performance

Summary of all time highs, changes and price drops for Primo Water
Historical stock prices
Current Share PriceCA$21.70
52 Week HighCA$25.31
52 Week LowCA$17.94
Beta1.37
1 Month Change-1.14%
3 Month Change10.88%
1 Year Change5.19%
3 Year Change8.01%
5 Year Change49.24%
Change since IPO5,623.07%

Recent News & Updates

Shareholder Returns

PRMWCA BeverageCA Market
7D0.6%1.4%-0.6%
1Y5.2%-4.4%17.7%

Return vs Industry: PRMW exceeded the Canadian Beverage industry which returned -4.7% over the past year.

Return vs Market: PRMW underperformed the Canadian Market which returned 18.2% over the past year.

Price Volatility

Is PRMW's price volatile compared to industry and market?
PRMW volatility
PRMW Average Weekly Movement4.7%
Beverage Industry Average Movement4.8%
Market Average Movement9.8%
10% most volatile stocks in CA Market17.6%
10% least volatile stocks in CA Market3.7%

Stable Share Price: PRMW is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PRMW's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a8,880Tom Harringtonhttps://primowatercorp.com

Primo Water Corporation provides water direct to consumers and water filtration services in North America, Europe, and Israel. The company offers bottled water, purified and spring bottled water, self-service refill drinking water, sparkling and flavored water, mineral water, and coffee; and water dispensers and filtration equipment. It provides its services to residential customers, small and medium-sized businesses, and regional and national corporations and retailers.

Primo Water Fundamentals Summary

How do Primo Water's earnings and revenue compare to its market cap?
PRMW fundamental statistics
Market CapUS$2.78b
Earnings (TTM)-US$20.40m
Revenue (TTM)US$2.06b

1.3x

P/S Ratio

-136.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRMW income statement (TTM)
RevenueUS$2.06b
Cost of RevenueUS$908.40m
Gross ProfitUS$1.15b
ExpensesUS$1.17b
Earnings-US$20.40m

Last Reported Earnings

Oct 02, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)-0.13
Gross Margin55.91%
Net Profit Margin-0.99%
Debt/Equity Ratio108.6%

How did PRMW perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

-189%

Payout Ratio

Valuation

Is Primo Water undervalued compared to its fair value and its price relative to the market?

42.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRMW (CA$21.7) is trading below our estimate of fair value (CA$37.63)

Significantly Below Fair Value: PRMW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PRMW is unprofitable, so we can't compare its PE Ratio to the North American Beverage industry average.

PE vs Market: PRMW is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PRMW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PRMW is overvalued based on its PB Ratio (2.1x) compared to the CA Beverage industry average (1.7x).


Future Growth

How is Primo Water forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

40.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRMW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: PRMW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PRMW's is expected to become profitable in the next 3 years.

Revenue vs Market: PRMW's revenue (4.8% per year) is forecast to grow slower than the Canadian market (5.4% per year).

High Growth Revenue: PRMW's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRMW's Return on Equity is forecast to be low in 3 years time (10.9%).


Past Performance

How has Primo Water performed over the past 5 years?

-24.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRMW is currently unprofitable.

Growing Profit Margin: PRMW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRMW is unprofitable, and losses have increased over the past 5 years at a rate of 24.7% per year.

Accelerating Growth: Unable to compare PRMW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PRMW is unprofitable, making it difficult to compare its past year earnings growth to the Beverage industry (21.9%).


Return on Equity

High ROE: PRMW has a negative Return on Equity (-1.55%), as it is currently unprofitable.


Financial Health

How is Primo Water's financial position?


Financial Position Analysis

Short Term Liabilities: PRMW's short term assets ($529.7M) do not cover its short term liabilities ($663.0M).

Long Term Liabilities: PRMW's short term assets ($529.7M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: PRMW's net debt to equity ratio (99.1%) is considered high.

Reducing Debt: PRMW's debt to equity ratio has reduced from 234% to 108.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PRMW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PRMW is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 10.3% per year.


Dividend

What is Primo Water current dividend yield, its reliability and sustainability?

1.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRMW's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: PRMW's dividend (1.38%) is low compared to the top 25% of dividend payers in the Canadian market (4.61%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PRMW has been paying a dividend for less than 10 years.

Growing Dividend: PRMW's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: PRMW is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PRMW's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Tom Harrington (63 yo)

3.08yrs

Tenure

US$6,999,545

Compensation

Mr. Thomas J. Harrington, also known as Tom, has been Chief Executive Officer and Director at Primo Water Corporation (formerly known as Cott Corporation) since December 30, 2018 and is its President. and...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD7.00M) is above average for companies of similar size in the Canadian market ($USD2.84M).

Compensation vs Earnings: Tom's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: PRMW's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: PRMW's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PRMW insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Primo Water Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Primo Water Corporation
  • Ticker: PRMW
  • Exchange: TSX
  • Founded: NaN
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: CA$3.474b
  • Shares outstanding: 160.10m
  • Website: https://primowatercorp.com

Number of Employees


Location

  • Primo Water Corporation
  • 4221 West Boy Scout Boulevard
  • Suite 400
  • Tampa
  • Florida
  • 33607
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:31
End of Day Share Price2022/01/19 00:00
Earnings2021/10/02
Annual Earnings2021/01/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.