Primo Water
Market Cap
US$2.3b
Last Updated
2021/02/26 23:59 UTC
Data Sources
Company Financials +
Executive Summary
Primo Water Corporation provides home and office bottled water delivery and water filtration services in North America and Europe. More Details
Rewards
Risk Analysis
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
| PRMW | Industry | Market | |
|---|---|---|---|
| 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 Year | 2.0%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 Year | 22.2%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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.17yrs | US$4.11m | 0.28% $ 6.4m | |
| Chief Financial & Administrative Officer | 8.92yrs | US$1.83m | 0.15% $ 3.5m | |
| Chief Legal Officer & Secretary | 11yrs | US$1.37m | 0.12% $ 2.8m | |
| Chief Accounting Officer | 5.75yrs | no data | 0.020% $ 459.5k | |
| Global Chief Information Officer | 1.83yrs | no data | 0.012% $ 269.8k | |
| Vice President of Investor Relations | 0.17yr | no data | no data | |
| Vice President of Human Resources | 2.33yrs | no data | 0.0089% $ 203.5k | |
| President of International | no data | US$2.29m | 0.10% $ 2.3m | |
| Chief Financial Officer of European operation | 1yr | no data | no data | |
| Chief Procurement Officer | 0.50yr | no data | no data | |
| Chief Strategy Officer | 3.67yrs | no data | no data | |
| President of North America | 2.83yrs | no data | 0.050% $ 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 2.17yrs | US$4.11m | 0.28% $ 6.4m | |
| Independent Director | 16.58yrs | US$200.00k | 0.068% $ 1.6m | |
| Director | 0.75yr | no data | 0.69% $ 16.0m | |
| Chairman of the Board | 2.17yrs | US$1.15m | 0.84% $ 19.3m | |
| Independent Director | 29.08yrs | US$215.00k | 0.074% $ 1.7m | |
| Independent Director | 13yrs | US$218.13k | 0.032% $ 742.0k | |
| Independent Director | 0.75yr | no data | 0.020% $ 466.9k | |
| Independent Director | 2.25yrs | US$252.62k | 0.023% $ 519.1k | |
| Lead Independent Director | 12.67yrs | US$240.00k | 0.27% $ 6.1m | |
| Independent Director | 12.67yrs | US$200.00k | 0.10% $ 2.3m | |
| Independent Director | 12.67yrs | US$200.00k | 0.081% $ 1.9m | |
| Independent Director | 2.25yrs | US$252.62k | 0.014% $ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PRMW | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1986 |
| PRMW | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1986 |
| GC6P | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/26 23:59 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2021/01/02 |
| Annual Earnings | 2021/01/02 |
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.