Primo Brands (PRMB) AI Stock Analysis

• Market Cap: $9.27B
• Dividend Yield: 4.83%
• Average Volume (3M): 6.36M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.23
• Revenue Growth: 162.92%
• EPS Growth: -107.26%
• Country: US
• Employees: 13,000
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.36
• Shares Outstanding: 373,520,970
• 10 Day Avg. Volume: 8,333,914
• 30 Day Avg. Volume: 6,361,743
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: 2.72
• Enterprise Value/Gross Profit: 8.63
• Enterprise Value/Ebitda: 20.66
• 1Y Price Target: $35.78
• Price Target Upside: 43.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 52 Neutral
• Price Target: $24.00 ▼(-3.65% Downside)

Primo Brands faces significant challenges with profitability and technical indicators suggesting bearish momentum. While there are positive aspects such as strong cash flow management and a high dividend yield, the negative P/E ratio and operational disruptions weigh heavily on the overall score. The earnings call provides some optimism with synergy capture and premium sales growth, but risks remain.

Positive Factors

Financial Performance

The company's premium bottled water brands and its exchange and refill business all grew at rates accretive to corporate target.

Investment Recommendation

Analyst's recommendation is to buy PRMB stock with a price objective of 39.00 USD, indicating potential for growth from the current price.

Market Position

Primo is structured to capitalize on secular demand for bottled water as a better-for-you and safer alternative to sugary or otherwise processed beverages.

Negative Factors

Execution Risk

There is continued execution risk and acknowledgment that implied 4Q guidance doesn't leave a lot of room for error.

Guidance Revision

Management reduced its guidance for full-year sales and earnings, which are below current estimates.

Weather Impact

Ozarka was negatively impacted by flooding in Texas, affecting its sales performance.

Primo Brands Business Overview & Revenue Model

Company Description

Primo Water Corporation provides water direct to consumers and water filtration services in North America and Europe. It offers bottled water, purified bottled water, premium spring, sparkling and flavored water, mineral water, filtration equipment, and coffee; as well as water dispensers, and self-service refill drinking water. The company offers its products under the Primo, Alhambra, Crystal Rock, Mountain Valley, Deep Rock, Hinckley Springs, Crystal Springs, Kentwood Springs, Mount Olympus, Pureflo, Nursery, Sierra Springs, Sparkletts, Clear Mountain Natural Spring Water, Earth2O, Renü, Water Event Pure Water Solutions, Canadian Springs, Labrador Source, Decantae, Eden, Eden Springs, Chateaud'eau, and Mey Eden brands. It provides its services to residential customers, small and medium-sized businesses, and regional and national corporations and retailers. 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.

How the Company Makes Money

Primo Brands generates revenue through multiple streams, primarily by selling its consumer products to retailers and wholesalers across different channels, including grocery stores, e-commerce platforms, and specialty shops. The company benefits from brand loyalty and repeat purchases, which contribute to a stable revenue base. Additionally, Primo Brands engages in strategic partnerships with distributors and retailers to enhance product visibility and accessibility. Key revenue streams also include private label products and co-branding initiatives, which allow the company to leverage its manufacturing capabilities while catering to specific market segments. Seasonal promotions, marketing campaigns, and product launches further drive sales, enhancing overall profitability.

Primo Brands Financial Statement Overview

Summary

Primo Brands shows strong revenue growth and cash flow management, but faces challenges with profitability and leverage. The income statement reflects positive sales trends, while the balance sheet highlights financial risks due to high debt levels. The cash flow statement indicates solid liquidity and operational cash management.

Income Statement

Primo Brands shows a mixed performance in its income statement. The company achieved a gross profit margin of 31.5% in the latest year, indicating a strong ability to cover its cost of goods sold. However, the net profit margin is negative due to a net loss, highlighting profitability challenges. Revenue growth was robust at 9.6% year-over-year, suggesting positive sales momentum. The EBIT margin of 7.0% and EBITDA margin of 13.5% reflect moderate operational efficiency.

Balance Sheet

The balance sheet of Primo Brands reveals a high debt-to-equity ratio of 1.65, indicating significant leverage and potential financial risk. The return on equity is negative due to the net loss, which is a concern for investors. However, the equity ratio stands at 30.8%, suggesting a reasonable proportion of assets financed by equity. Overall, the balance sheet shows a need for improved financial stability.

Cash Flow

Primo Brands demonstrates strong cash flow management with a free cash flow growth rate of 164.5% year-over-year, indicating improved cash generation. The operating cash flow to net income ratio is 28.3, reflecting efficient cash conversion from operations despite the net loss. The free cash flow to net income ratio is 16.6, suggesting effective cash retention. Overall, the cash flow statement indicates solid liquidity and operational cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.05B	5.15B	4.70B	4.44B	1.58B	1.95B
Gross Profit	1.91B	1.62B	1.35B	994.20M	891.00M	1.11B
EBITDA	797.40M	693.60M	711.70M	358.20M	241.10M	131.20M
Net Income	-48.10M	-16.40M	92.80M	-126.70M	-3.20M	-131.70M
Balance Sheet
Total Assets	11.05B	11.19B	5.15B	5.38B	3.72B	3.60B
Cash, Cash Equivalents and Short-Term Investments	412.00M	613.70M	44.70M	102.90M	128.40M	115.10M
Total Debt	5.73B	5.68B	4.05B	3.92B	1.74B	1.65B
Total Liabilities	7.80B	7.75B	5.15B	5.25B	2.40B	2.26B
Stockholders Equity	3.25B	3.44B	2.70M	134.60M	1.32B	1.35B
Cash Flow
Free Cash Flow	176.70M	272.90M	103.20M	-228.40M	135.70M	52.90M
Operating Cash Flow	329.50M	463.80M	320.90M	108.30M	256.90M	176.20M
Investing Cash Flow	480.80M	474.40M	-217.60M	-319.40M	-240.90M	-178.00M
Financing Cash Flow	-496.00M	-362.90M	-162.30M	-147.70M	-800.00K	-91.10M

Primo Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 24.91 is below the 20-day moving average (MA) of 25.77, below the 50-day MA of 27.91, and below the 200-day MA of 30.48, indicating a bearish trend. The MACD of -1.07 indicates Negative momentum. The RSI at 35.15 is Neutral, neither overbought nor oversold. The STOCH value of 83.67 is Negative, 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
COKE	79 Outperform	$10.34B	19.83	41.45%	5.00%	3.22%	23.88%
CELH	75 Outperform	$15.60B	170.80	7.91%	―	11.85%	-64.69%
KDP	74 Outperform	$47.79B	31.21	6.18%	2.62%	4.63%	-28.22%
KOF	71 Outperform	$4.36B	14.59	16.78%	3.99%	-4.05%	-3.69%
Sector *	69 Neutral	¥222.72B	21.81	8.23%	2.13%	4.96%	1.22%
FIZZ	67 Neutral	$4.16B	22.25	37.23%	―	0.81%	5.51%
PRMB	52 Neutral	$9.27B	20.07	-2.15%	4.83%	162.92%	-107.26%

Primo Brands Corporate Events

Primo Brands Announces Executive Role Changes

On July 31, 2025, Primo Brands Corporation announced changes in its executive roles as part of the ongoing integration with Triton Water Parent, Inc. The company decided to combine the roles of General Counsel and Chief Administrative Officer, resulting in Marni Poe stepping down as General Counsel effective August 6, 2025. Hih Song Kim will take over as Chief Legal Officer and Corporate Secretary. Ms. Poe will assist with the transition until August 29, 2025, and will receive compensation according to the company’s severance and equity plans. Additionally, her equity awards will continue to vest in recognition of her contributions.

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 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.