Primo Water Corp
PRMW
Bottled & Canned Soft Drinks & Carbonated Waters
Mkt Cap
$3.611BPE
14.03Debt
$1.269BCash
$498.3MEV
$4.382BFCF
$195.2MP/E Ratio
14.03Debt
$1.269BCash
$498.3MEV
$4.382BFCF
$195.2MCharts data: {"Earnings":[{"time":"2015-01-02","value":10000000},{"time":"2016-01-01","value":-3400000},{"time":"2016-12-30","value":-77800000},{"time":"2017-12-29","value":-1400000},{"time":"2018-12-28","value":382900000},{"time":"2019-12-27","value":2900000},{"time":"2021-01-01","value":-131700000},{"time":"2021-12-31","value":-3200000},{"time":"2022-12-30","value":29600000},{"time":"2023-12-29","value":238100000}],"Sales":[{"time":"2015-01-02","value":2102800000},{"time":"2016-01-01","value":2944000000},{"time":"2016-12-30","value":1623200000},{"time":"2017-12-29","value":2269700000},{"time":"2018-12-28","value":2372900000},{"time":"2019-12-27","value":2394500000},{"time":"2021-01-01","value":1953500000},{"time":"2021-12-31","value":2073300000},{"time":"2022-12-30","value":2215100000},{"time":"2023-12-29","value":1771800000}],"Net Margins":[{"time":"2015-01-02","value":0.004755564009891573},{"time":"2016-01-01","value":-0.0011548913043478261},{"time":"2016-12-30","value":-0.047930014785608675},{"time":"2017-12-29","value":-0.0006168216063796978},{"time":"2018-12-28","value":0.1613637321421046},{"time":"2019-12-27","value":0.0012111087909793276},{"time":"2021-01-01","value":-0.0674174558484771},{"time":"2021-12-31","value":-0.0015434331741667872},{"time":"2022-12-30","value":0.013362827863301882},{"time":"2023-12-29","value":0.13438311321819618}],"Assets":[{"time":"2015-01-02","value":3107700000},{"time":"2016-01-01","value":2887300000},{"time":"2016-12-30","value":3939700000},{"time":"2017-12-29","value":4093100000},{"time":"2018-12-28","value":3175500000},{"time":"2019-12-27","value":3390900000},{"time":"2021-01-01","value":3604700000},{"time":"2021-12-31","value":3723400000},{"time":"2022-12-30","value":3667000000},{"time":"2023-12-29","value":3523000000}],"Stockholders Equity":[{"time":"2015-01-02","value":548900000},{"time":"2016-01-01","value":645900000},{"time":"2016-12-30","value":873800000},{"time":"2017-12-29","value":885700000},{"time":"2018-12-28","value":1170400000},{"time":"2019-12-27","value":1166200000},{"time":"2021-01-01","value":1346900000},{"time":"2021-12-31","value":1320100000},{"time":"2022-12-30","value":1282900000},{"time":"2023-12-29","value":1441300000}],"ROE":[{"time":"2015-01-02","value":0.018218254691200583},{"time":"2016-01-01","value":-0.005263972751199876},{"time":"2016-12-30","value":-0.08903639276722362},{"time":"2017-12-29","value":-0.0015806706559783222},{"time":"2018-12-28","value":0.32715311004784686},{"time":"2019-12-27","value":0.0024867089693020065},{"time":"2021-01-01","value":-0.09778008760858267},{"time":"2021-12-31","value":-0.002424058783425498},{"time":"2022-12-30","value":0.02307272585548367},{"time":"2023-12-29","value":0.1651980850620967}],"ROA":[{"time":"2015-01-02","value":0.005051967693149274},{"time":"2016-01-01","value":0.03771689814013092},{"time":"2016-12-30","value":0.02086453283244917},{"time":"2017-12-29","value":0.012679875888690724},{"time":"2018-12-28","value":0.032026452527161076},{"time":"2019-12-27","value":0.026659588899702144},{"time":"2021-01-01","value":-0.014481094127111826},{"time":"2021-12-31","value":0.027662888757587153},{"time":"2022-12-30","value":0.0348786473956913},{"time":"2023-12-29","value":0.04638092534771501}]}
Primo Water Corporation provides pure-play water solutions for residential and commercial customers. It offers bottled water, water dispensers, purified bottled water, self-service refill drinking water, premium spring, mineral water, sparkling and flavored water, filtration equipment, and coffee. The company offers its products under the Primo, Alhambra, Crystal Rock, Mountain Valley, Deep Rock, Hinckley Springs, Crystal Springs, Kentwood Springs, Mount Olympus, Pureflo, Sierra Springs, Sparkletts, and Renü brands in the United States; Canadian Springs, Labrador Source, and Amazon Springs brands in Canada; and Decantae, Eden, Eden Springs, Chateaud'eau, and Mey Eden brands in Europe and Israel. It sells its products through retailers and online at various price points. The company was formerly known as Cott Corporation and changed its name to Primo Water Corporation in March 2020. Primo Water Corporation was incorporated in 1955 and is headquartered in Tampa, Florida.
DCF
Discounted Cash Flow Valuation of Primo Water Corp
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $195.2M | $196.7M | $198.2M | $199.7M | $201.2M | $202.7M | $204.3M | $205.8M | $207.4M | $209M | $210.6M | $2.106B |
| DCF | $171M | $149.9M | $131.3M | $115M | $100.8M | $88.32M | $77.38M | $67.8M | $59.4M | $52.05M | $520.5M | |
| Value | $1.533B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 11%
Earnings Stability -66%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 01-2016 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 01-2021 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -0.12% | -4.8% | -0.062% | 16% | 0.12% | -6.7% | -0.15% | 1.3% | 13% | 15% |
| ROA | 3.8% | 2.1% | 1.3% | 3.2% | 2.7% | -1.4% | 2.8% | 3.5% | 4.6% | 5.1% |
| ROE | -0.53% | -8.9% | -0.16% | 33% | 0.25% | -9.8% | -0.24% | 2.3% | 17% | 18% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +4.02%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -0.09%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +2.55%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +0.4%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +6.96%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -1.86%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 01-2016 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 01-2021 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 11.48 | 16.93 | 45.93 | 12.64 | 10.78 | 20.25 | 17.03 | 23.78 | 8.66 | 6.50 |
| Debt Equity | 2.56 | 2.52 | 2.84 | 1.23 | 1.25 | 1.20 | 1.38 | 1.37 | 0.90 | 0.88 |
| MIN | ||||||||||
| Graham Stability | - | - | - | - | 2.9% | -100% | -3.8% | - | - | -100% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 6.50.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.45.
What is the Graham’s Stability?
Graham’s Stability measure stands at -1.03.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 01-2021 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 1.3% | -5.7% | -3.2% | -20% | -2.9% |
| Net Income | - | -9.1% | - | 700% | 200% |
| Stockholders Equity | 7.4% | 4.3% | 2.3% | 12% | -2.6% |
| FCF | 2.1% | 5.7% | 24% | 100% | -83% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is -5.67%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -2.92%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -9.06%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +200.91%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +4.25%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -2.65%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +5.74%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -82.8%.