Primo Brands (PRMB) AI Stock Analysis

• Market Cap: $11.00B
• Dividend Yield: 1.37%
• Average Volume (3M): 6.89M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.28
• Revenue Growth: 90.28%
• EPS Growth: -105.48%
• Country: US
• Employees: 13,000
• Sector: Consumer Defensive
• Sector Strength: 70
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.29
• Shares Outstanding: 376,422,940
• 10 Day Avg. Volume: 8,155,416
• 30 Day Avg. Volume: 6,894,679
• PEG Ratio: -0.08
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.43
• Enterprise Value/Market Cap: 0.29
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 1.29
• 1Y Price Target: $42.86
• Price Target Upside: 44.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: $35.00 ▲(18.16%Upside)

Primo Brands' strong earnings call performance and strategic stock repurchase are major positives. However, financial performance concerns due to profitability challenges and high leverage, coupled with valuation issues, weigh heavily on the overall score. The technical indicators suggest cautious short-term outlook, reflecting mixed signals.

Positive Factors

Earnings Visibility

PRMB offers a rare combination within Staples of solid earnings visibility at a compelling valuation.

Market Position

Primo Brands is the #1 player in US bottled water, with 13 core brands which include billion-dollar brands Pure Life and Poland Spring.

Merger Synergies

Post-merger, an estimated $300 million of cost synergies should expand adjusted EBITDA margin from 20% to 25%.

Negative Factors

Macroeconomic Conditions

Lowering estimates and targets due to weaker macroeconomic conditions.

Return on Equity

Return on Equity TTM for PRMB is -3.12%.

Tariff Concerns

Lowering target on near-term tariff concerns.

Primo Brands Business Overview & Revenue Model

Company Description

Primo Brands (PRMB) is a dynamic consumer goods company specializing in the production and distribution of premium, eco-friendly products. Operating primarily in the personal care and home essentials sectors, the company is committed to sustainability and innovation. Its core product offerings include biodegradable cleaning supplies, natural skincare lines, and eco-friendly household goods, all designed to enhance everyday living while minimizing environmental impact.

How the Company Makes Money

Primo Brands generates revenue through the sale of its eco-friendly consumer products across multiple channels, including direct-to-consumer e-commerce platforms, retail partnerships with major grocery and department stores, and wholesale agreements with specialty shops. The company's key revenue streams include product sales, private label manufacturing for other brands, and subscription services for recurring delivery of essential items. Partnerships with influential retailers and a strong online presence contribute significantly to its earnings by expanding market reach and enhancing brand visibility.

Primo Brands Financial Statement Overview

Summary

Primo Brands shows strong revenue growth and effective cash management, but faces profitability challenges and increased financial leverage. The negative net income and high debt-to-equity ratio require strategic cost control and debt management.

Income Statement

Primo Brands has shown strong revenue growth over the years, particularly from 2023 to 2024 with a 9.65% increase. However, the net profit margin turned negative in 2024, indicating profitability challenges despite the positive growth trend. The gross profit margin remains strong at 31.48% for 2024, but the decline in EBIT margin from 8.64% in 2023 to 7.00% in 2024 suggests increased operating expenses or cost pressures.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.65 in 2024, indicating higher financial leverage and potential risk if market conditions change. Despite this, the equity ratio remains stable at 30.77%, reflecting a reasonable level of asset financing through equity. Return on Equity (ROE) has turned negative due to the net loss in 2024, which is a point of concern for shareholder returns.

Cash Flow

Primo Brands' cash flow metrics show resilience with a substantial increase in free cash flow by 164.52% from 2023 to 2024, indicating effective cash management. The operating cash flow to net income ratio is strong, suggesting high-quality earnings. However, the free cash flow to net income ratio in 2024 is negative due to the net loss, reflecting a need for caution in cash flow sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.15B	5.15B	4.70B	4.44B	1.58B	1.95B
	Gross Profit
1.16B	1.62B	1.35B	994.20M	891.00M	1.11B
	EBIT
-56.30M	360.30M	406.00M	23.30M	103.00M	-52.20M
	EBITDA
292.70M	693.60M	711.70M	358.20M	241.10M	131.20M
	Net Income Common Stockholders
-114.30M	-16.40M	92.80M	-126.70M	-3.20M	-131.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
613.70M	613.70M	44.70M	102.90M	128.40M	115.10M
	Total Assets
11.19B	11.19B	5.15B	5.38B	3.72B	3.60B
	Total Debt
5.68B	5.68B	4.05B	3.92B	1.74B	1.65B
	Net Debt
5.07B	5.07B	4.01B	3.81B	1.61B	1.54B
	Total Liabilities
7.75B	7.75B	5.15B	5.25B	2.40B	2.26B
	Stockholders Equity
3.44B	3.44B	2.70M	134.60M	1.32B	1.35B
Cash Flow		Free Cash Flow
128.50M	272.90M	103.20M	-228.40M	135.70M	52.90M
	Operating Cash Flow
267.10M	463.80M	320.90M	108.30M	256.90M	176.20M
	Investing Cash Flow
-211.10M	474.40M	-217.60M	-319.40M	-240.90M	-178.00M
	Financing Cash Flow
42.40M	-362.90M	-162.30M	-147.70M	-800.00K	-91.10M

Primo Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRMB, the sentiment is Negative. The current price of 29.62 is below the 20-day moving average (MA) of 31.25, below the 50-day MA of 32.20, and below the 200-day MA of 29.70, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 38.29 is Neutral, neither overbought nor oversold. The STOCH value of 17.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRMB.

Primo Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CELH	79 Outperform	$10.84B	133.65	9.19%	―	-5.98%	-65.57%
FIZZ	77 Outperform	$4.28B	22.59	40.81%	―	0.34%	9.48%
KOF	74 Outperform	$5.12B	16.49	17.12%	1.78%	1.54%	4.48%
KDP	73 Outperform	$45.01B	29.91	6.13%	2.78%	3.95%	-28.73%
COKE	69 Neutral	$9.43B	18.81	36.83%	9.10%	3.21%	31.84%
Sector *	65 Neutral	$8.89B	14.91	4.67%	6.16%	3.60%	-2.89%
PRMB	64 Neutral	$11.00B	20.07	-2.83%	1.37%	90.28%	-105.48%

Primo Brands Corporate Events

Primo Brands Announces Board Resignations Amid Stock Changes

On May 19, 2025, Primo Brands Corporation announced the resignation of Kurtis Barker and Allison Spector from its Board of Directors following a decrease in ownership of the company’s Class A common stock by the ORCP Stockholders. The resignations, effective May 21, 2025, were not due to any disagreements with the company. Subsequently, the Board reduced its size to eleven directors, eliminating the vacancy for a Mutually Agreed Director as requested by the Initial ORCP Stockholder.

The most recent analyst rating on (PRMB) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Primo Brands stock, see the PRMB Stock Forecast page.

Primo Brands Completes Stock Repurchase Agreement

On May 7, 2025, Primo Brands Corporation entered into a stock purchase agreement to repurchase 3,157,562 shares of its Class A common stock from affiliates of One Rock Capital Partners. The repurchase closed on May 12, 2025, concurrently with a secondary offering by the same affiliates, who sold 47,500,000 shares, garnering approximately $1.5 billion in proceeds. This strategic move, involving no direct sale of shares by Primo Brands, signifies a consolidation of its stock and potentially strengthens its market position by reducing the number of outstanding shares.

The most recent analyst rating on (PRMB) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Primo Brands stock, see the PRMB Stock Forecast page.

Primo Brands Board Member Joseph Rosenberg Resigns

On March 18, 2025, Joseph Rosenberg resigned from Primo Brands Corporation’s Board of Directors following a decrease in ownership of the company’s Class A common stock by ORCP Stockholders. His resignation, effective March 20, 2025, was not due to any disagreements with the company. Following his departure, the Board reduced its size to thirteen directors as requested by the Initial ORCP Stockholder.