NYSE:PRMW

Stock Analysis Report

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Executive Summary

Primo Water Corporation provides home and office bottled water delivery and water filtration services in North America and Europe. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

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 US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PRMW's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-9.2%

PRMW

-2.8%

US Beverage

-4.6%

US Market


1 Year Return

0.3%

PRMW

3.3%

US Beverage

38.5%

US Market

Return vs Industry: PRMW underperformed the US Beverage industry which returned 1.9% over the past year.

Return vs Market: PRMW underperformed the US Market which returned 38.9% over the past year.


Shareholder returns

PRMWIndustryMarket
7 Day-9.2%-2.8%-4.6%
30 Day-6.0%-3.0%0.6%
90 Day-4.9%-5.6%1.9%
1 Year2.0%0.3%6.1%3.3%41.5%38.5%
3 Year-4.8%-9.5%25.4%15.9%56.7%46.7%
5 Year22.2%12.3%43.8%26.0%123.5%98.6%

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

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRMW ($14.29) is trading below our estimate of fair value ($33.31)

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 US Beverage industry average.

PE vs Market: PRMW is unprofitable, so we can't compare its PE Ratio to the US 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 good value based on its PB Ratio (1.7x) compared to the US Beverage industry average (7.1x).


Next Steps

Future Growth

How is Primo Water forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

158.6%

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 (2%).

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 (4.7% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: PRMW's revenue (4.7% 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 (7.6%).


Next Steps

Past Performance

How has Primo Water performed over the past 5 years?

-33.1%

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 33.1% 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 (10.1%).


Return on Equity

High ROE: PRMW has a negative Return on Equity (-11.64%), as it is currently unprofitable.


Next Steps

Financial Health

How is Primo Water's financial position?


Financial Position Analysis

Short Term Liabilities: PRMW's short term assets ($442.5M) do not cover its short term liabilities ($548.8M).

Long Term Liabilities: PRMW's short term assets ($442.5M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: PRMW's debt to equity ratio (109.2%) is considered high.

Reducing Debt: PRMW's debt to equity ratio has reduced from 253.8% to 109.2% 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 4% per year.


Next Steps

Dividend

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

1.64%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PRMW's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: PRMW's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 8 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 (38.7% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Tom Harrington (62 yo)

2.17yrs

Tenure

US$4,106,760

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. He s...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.11M) is about average for companies of similar size in the US market ($USD3.61M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Harrington
President2.17yrsUS$4.11m0.28%
$ 6.4m
Jay Wells
Chief Financial & Administrative Officer8.92yrsUS$1.83m0.15%
$ 3.5m
Marni Poe
Chief Legal Officer & Secretary11yrsUS$1.37m0.12%
$ 2.8m
Jason Ausher
Chief Accounting Officer5.75yrsno data0.020%
$ 459.5k
William Jamieson
Global Chief Information Officer1.83yrsno data0.012%
$ 269.8k
Jon Kathol
Vice President of Investor Relations0.17yrno datano data
Ghire Shivprasad
Vice President of Human Resources2.33yrsno data0.0089%
$ 203.5k
Steven Kitching
President of Internationalno dataUS$2.29m0.10%
$ 2.3m
Jarrod Langhans
Chief Financial Officer of European operation1yrno datano data
Mercedes Romero
Chief Procurement Officer0.50yrno datano data
David Hass
Chief Strategy Officer3.67yrsno datano data
David Muscato
President of North America2.83yrsno data0.050%
$ 1.1m

2.3yrs

Average Tenure

50yo

Average Age

Experienced Management: PRMW's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Harrington
President2.17yrsUS$4.11m0.28%
$ 6.4m
Betty Hess
Independent Director16.58yrsUS$200.00k0.068%
$ 1.6m
Billy Prim
Director0.75yrno data0.69%
$ 16.0m
Jeremy S. Fowden
Chairman of the Board2.17yrsUS$1.15m0.84%
$ 19.3m
Stephen Halperin
Independent Director29.08yrsUS$215.00k0.074%
$ 1.7m
Graham Savage
Independent Director13yrsUS$218.13k0.032%
$ 742.0k
Susan Cates
Independent Director0.75yrno data0.020%
$ 466.9k
Steven Stanbrook
Independent Director2.25yrsUS$252.62k0.023%
$ 519.1k
Eric Rosenfeld
Lead Independent Director12.67yrsUS$240.00k0.27%
$ 6.1m
Mario Pilozzi
Independent Director12.67yrsUS$200.00k0.10%
$ 2.3m
Gregory Monahan
Independent Director12.67yrsUS$200.00k0.081%
$ 1.9m
Britta Bomhard
Independent Director2.25yrsUS$252.62k0.014%
$ 325.4k

7.5yrs

Average Tenure

63yo

Average Age

Experienced Board: PRMW's board of directors are considered experienced (7.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19%.


Top Shareholders

Company Information

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


Key Information

  • Name: Primo Water Corporation
  • Ticker: PRMW
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CA$2.921b
  • Listing Market Cap: CA$2.300b
  • Shares outstanding: 160.41m
  • Website: https://primowatercorp.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRMWTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1986
PRMWNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1986
GC6PDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1986

Biography

Primo Water Corporation provides home and office bottled water delivery and water filtration services in North America and Europe. It offers water dispensers, purified bottled water, and self-service refil...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 23:59
End of Day Share Price2021/02/26 00:00
Earnings2021/01/02
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.