Primo Water Corp

Consumer Staples
Beverages (Production/Distribution)
www.primowatercorp.com

Earnings Score
Moat Score
Safety Score

Market Cap $3.87B
PE 15
Debt $1.28B
Cash $667.30M
EV $4.49B
FCF $173.80M

Earnings

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Sales & Net Margins

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Earnings	$257.20M
EBIT	$155.70M
ROE	17%
ROA	4%
FCF	$173.80M
Equity	$1.48B
Growth Stability	-103%
PE	15.06
PEG	0.21
PB	2.61
P/FCF	22.29
P/S	2.66
Price/Cash	0.17
Debt/Equity	0.87
Debt/FCF	7.39
Net Margins	5%
Gross Margins	68%
Op. Margins	11%
Earnings CAGR	3%
Sales Growth YoY	-18%
Sales Growth QoQ	5%
Sales CAGR	-2%
FCF CAGR	2%
Equity CAGR	9%
Earnings Stability	0.01
Earnings Growth YoY	16%
Earnings Growth QoQ	141%

Earnings CAGR 5Y	71%
Sales CAGR 5Y	-5%
FCF CAGR 5Y	6%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	-12%
Sales CAGR 3Y	-12%
FCF CAGR 3Y	44%
Equity CAGR 3Y	5%
Market Cap	$3.87B
Revenue	$1.46B
Assets	$3.56B
Total Debt	$1.28B
Cash	$667.30M
Shares Outstanding	160.02M
EV	4.49B
Earnings Score	6%
Moat Score	75%
Safety Score	48%
Final Score	43%
Working Capital	572.2M
Current Ratio	2.34
Gross Profit	$994.00M
Shares Growth 3y	-0%
Equity Growth QoQ	2%
Equity Growth YoY	15%

Assets & ROA

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Stockholders Equity & ROE

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Primo Water is a pure-play water provider that is the product of the March 2020 acquisition of the legacy Primo business by Cott. The firm's water solutions ecosystem is anchored by an assortment of water dispensers and its water direct business. In the latter, it receives recurring revenue for delivering large-format (3- and 5-gallon) water bottles to residential and commercial customers for use in the dispensers. Supplementary offerings include water exchange, where consumers can exchange or purchase prefilled containers at retail, and water refill, where consumers have access to the network of self-service refill units that Primo manages. Most sales are generated in North America, with the remainder primarily in Europe and Israel.

SEC Filings

Direct access to Primo Water Corp (PRMW) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02
- 10-K Jan 01

Sector Comparison

How does Primo Water Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Primo Water Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 3%

Stability 1%

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Primo Water Corp Discounted Cash Flow

Fully customizable DCF calculator online for Primo Water Corp .

Years

Calculation mode

= $2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$174M	$177M	$180M	$184M	$187M	$191M	$195M	$198M	$202M	$206M	$210M	$2.1B
DCF		$161M	$149M	$138M	$128M	$119M	$110M	$102M	$94M	$87M	$81M	$809M
Value	$2B

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	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	TTM
Net Margins	0%	-0%	-5%	-0%	16%	0%	-7%	-0%	1%	13%	5%
ROA	-	4%	2%	1%	3%	3%	-1%	3%	3%	5%	4%
ROE	-	-1%	-9%	-0%	33%	0%	-10%	-0%	2%	17%	17%

Bad Net Margins (5.5%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

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	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	11.48	16.93	45.93	12.64	10.78	20.25	17.03	23.78	8.66	7.39
Debt over Equity	3.28	2.56	2.52	2.84	1.23	1.25	1.2	1.38	1.37	0.9	0.87
Growth Stability	-	-	-	-	-	3%	-103%	-4%	-	-	-103%

Bad Debt/FCF ratio (7.39)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.87)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-103%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	01/2015	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	40%	-45%	40%	5%	1%	-18%	6%	7%	-20%	-5%
Earnings YoY growth	-	-134%	2K%	-98%	-27K%	-99%	-5K%	-98%	-1K%	704%	71%
Equity YoY growth	-	18%	35%	1%	32%	-0%	15%	-2%	-3%	12%	1%
FCF YoY growth	-	1K%	-10%	-58%	107%	19%	-41%	34%	-31%	103%	6%