Primo Water Corporation provides water direct to consumers and water filtration services in North America, Europe, and Israel. More Details
No risks detected for PRMW from our risk checks.
Mediocre balance sheet with moderate growth potential.
Share Price & News
How has Primo Water's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PRMW is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: PRMW's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: PRMW underperformed the Canadian Beverage industry which returned 24.7% over the past year.
Return vs Market: PRMW underperformed the Canadian Market which returned 35.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Primo Water's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StThe Primo Water (TSE:PRMW) Share Price Is Up 24% And Shareholders Are Holding On
1 month ago | Simply Wall StIs There Now An Opportunity In Primo Water Corporation (TSE:PRMW)?
2 months ago | Simply Wall StPrimo Water (TSE:PRMW) Has A Somewhat Strained Balance Sheet
Is Primo Water undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PRMW (CA$21.17) is trading below our estimate of fair value (CA$30.07)
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 (2x).
How is Primo Water forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
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 (1.5%).
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 (4.3% per year) is forecast to grow slower than the Canadian market (5.7% per year).
High Growth Revenue: PRMW's revenue (4.3% 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 (7.2%).
How has Primo Water performed over the past 5 years?
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 38.6% 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 (26.6%).
Return on Equity
High ROE: PRMW has a negative Return on Equity (-10.44%), as it is currently unprofitable.
How is Primo Water's financial position?
Financial Position Analysis
Short Term Liabilities: PRMW's short term assets ($435.6M) do not cover its short term liabilities ($536.8M).
Long Term Liabilities: PRMW's short term assets ($435.6M) do not cover its long term liabilities ($1.7B).
Debt to Equity History and Analysis
Debt Level: PRMW's debt to equity ratio (108.6%) is considered high.
Reducing Debt: PRMW's debt to equity ratio has reduced from 203.8% to 108.6% over the past 5 years.
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 6.5% per year.
What is Primo Water current dividend yield, its reliability and sustainability?
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 (1.56%).
High Dividend: PRMW's dividend (1.38%) is low compared to the top 25% of dividend payers in the Canadian market (4.47%).
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 (35.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tom Harrington (62 yo)
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 ($USD3.04M).
Compensation vs Earnings: Tom's compensation has increased whilst the company is unprofitable.
Experienced Management: PRMW's management team is considered experienced (2.3 years average tenure).
Experienced Board: PRMW's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PRMW insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Primo Water Corporation's company bio, employee growth, exchange listings and data sources
- Name: Primo Water Corporation
- Ticker: PRMW
- Exchange: TSX
- Founded: NaN
- Industry: Soft Drinks
- Sector: Food, Beverage & Tobacco
- Market Cap: CA$3.411b
- Shares outstanding: 161.13m
- Website: https://primowatercorp.com
Number of Employees
- Primo Water Corporation
- 4221 West Boy Scout Boulevard
- Suite 400
- United States
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-serv...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/18 03:13|
|End of Day Share Price||2021/06/17 00:00|
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.