Primo Brands (PRMB)
NYSE:PRMB
Want to see PRMB full AI Analyst Report?
Top Page
Primo Brands
(NYSE:PRMB)
Select Model
Select Model
Rating:55Neutral
Price Target:
$20.00
▼(-4.26% Downside)
Action:ReiteratedDate:05/01/26
The score is primarily shaped by middling financial quality: strong revenue scaling and positive cash generation are offset by thin/volatile profitability and only modest returns despite improved leverage. Technicals are neutral-to-weak with the stock below key moving averages, while valuation is a major headwind given the very high P/E. The latest earnings call was constructive on margin and free-cash-flow guidance and shareholder returns, but tempered by modest sales growth outlook and ongoing integration and leverage risks.
Positive Factors
Revenue Scaling & Profitability Recovery
Sustained topline scaling into 2025 and a return to positive net income indicate the company has regained core revenue traction and moved toward profitable operations. Over months this supports reinvestment capacity, broader distribution leverage, and a more durable earnings base versus prior loss years.
Negative Factors
Thin and Volatile Profitability
Persistent margin compression and a very slim net margin mean earnings are sensitive to cost swings, price pressure, or reinvestment needs. Volatility across periods reduces predictability of sustainable returns and raises the bar for operational improvements to translate into durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Scaling & Profitability Recovery
Sustained topline scaling into 2025 and a return to positive net income indicate the company has regained core revenue traction and moved toward profitable operations. Over months this supports reinvestment capacity, broader distribution leverage, and a more durable earnings base versus prior loss years.
Read all positive factors
Primo Brands (PRMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.40B
Dividend Yield2.44%
Average Volume (3M)4.26M
Price to Earnings (P/E)101.6
Beta (1Y)0.42
Revenue Growth134.19%
EPS GrowthN/A
CountryUS
Employees13,000
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)0.26
Shares Outstanding363,176,940
10 Day Avg. Volume3,384,605
30 Day Avg. Volume4,257,731
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)2.04
Price to Sales (P/S)0.92
P/FCF Ratio19.70
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue1.85
Enterprise Value/Gross Profit6.16
Enterprise Value/Ebitda11.43
Forecast
1Y Price Target
$26.60Price Target Upside27.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)1.29
Revenue Forecast (FY)$6.69B
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 equipmen...
How the Company Makes Money
null...
Primo Brands Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed material operational improvement and strong profitability gains despite modest top‑line pressure and lingering integration effects. Management highlighted sequential recovery in the direct delivery business (improving OTIF, NPS, Trustpilot and customer nets), robust premium brand growth (Mountain Valley and Saratoga up strongly), meaningful EBITDA and margin expansion in both the quarter and full year, solid free cash flow generation, and shareholder returns (share repurchases and a 20% dividend increase). Key challenges include continued direct delivery stabilization needs, modest full‑year sales guidance (0%–1%), integration work remaining in 2026, and one‑time weather and leap‑day headwinds. Overall the company appears to be on a constructive trajectory: profitability, cash generation, premium growth and operational KPIs are improving while revenue recovery is expected to be second‑half weighted.Positive Updates
Improved Profitability — Q4 Adjusted EBITDA
Q4 comparable adjusted EBITDA of $334.1M, up 11% year-over-year; Q4 adjusted EBITDA margin 21.5%, up 260 basis points versus prior year.
Negative Updates
Top‑Line Pressure — Q4 and Full Year Net Sales Declines
Q4 comparable net sales of $1.554B, down 2.5% versus prior year (volume down 2.9%, price/mix +0.4%); FY2025 comparable net sales $6.660B, down 1.0% (volume down 0.6%, price/mix down 0.4%).
Read all updates
Q4-2025 Updates
Positive
Negative
Improved Profitability — Q4 Adjusted EBITDA
Q4 comparable adjusted EBITDA of $334.1M, up 11% year-over-year; Q4 adjusted EBITDA margin 21.5%, up 260 basis points versus prior year.
Read all positive updates
Company Guidance
Primo guided 2026 to comparable net sales growth of 0%–1% (using a $6.635B 2025 base after the exit of office coffee service), with growth weighted to the second half (Q1 faces a tougher ~3% comp and direct‑delivery recovery expected to shift to H2); adjusted EBITDA of $1.485B–$1.515B (midpoint margin ~22.5%, roughly +70 bps year‑over‑year, and management expects margin expansion of ~60–80 bps), adjusted free cash flow of $790M–$810M, and capital spending of ~4% of net sales (with ~ $100M remaining integration CapEx, ~$50M carried into 2026). The company also announced a $0.12 quarterly dividend ($0.48 annual, +20%), plans to continue repurchases with ≈$107M remaining on the $300M authorization, and enters 2026 with year‑end liquidity of ≈$990M, gross debt of $5.2B and net leverage of ~3.37x; management noted EBITDA phasing is slightly back‑loaded (roughly a 48/52 split) due to front‑loaded reinvestments to restore service.Primo Brands Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.66B | 5.15B | 4.70B | 1.69B | 2.07B |
| Gross Profit | 2.14B | 1.62B | 1.35B | 1.02B | 1.16B |
| EBITDA | 1.08B | 693.60M | 711.70M | 328.00M | 294.20M |
| Net Income | 60.10M | -16.40M | 92.80M | 29.60M | -3.20M |
Balance Sheet | |||||
| Total Assets | 10.60B | 11.19B | 5.15B | 3.67B | 3.72B |
| Cash, Cash Equivalents and Short-Term Investments | 376.90M | 614.40M | 47.00M | 78.80M | 128.40M |
| Total Debt | 5.73B | 5.68B | 4.05B | 1.62B | 1.74B |
| Total Liabilities | 7.61B | 7.75B | 5.15B | 2.38B | 2.40B |
| Stockholders Equity | 2.99B | 3.44B | 2.70M | 1.28B | 1.32B |
Cash Flow | |||||
| Free Cash Flow | 310.00M | 317.00M | 117.30M | 119.50M | 95.10M |
| Operating Cash Flow | 687.40M | 467.20M | 320.90M | 281.60M | 247.10M |
| Investing Cash Flow | -299.10M | 474.40M | -217.60M | -181.50M | -242.70M |
| Financing Cash Flow | -634.20M | -366.40M | -162.30M | -102.80M | 10.80M |
Primo Brands Technical Analysis
Positive
20.89
Price Trends
19.77
Positive
18.40
Positive
20.91
Negative
Market Momentum
0.14
Negative
61.26
Neutral
86.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRMB, the sentiment is Positive. The current price of 20.89 is above the 20-day moving average (MA) of 19.09, above the 50-day MA of 19.77, and below the 200-day MA of 20.91, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 61.26 is Neutral, neither overbought nor oversold. The STOCH value of 86.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRMB.
Primo Brands Risk Analysis
Primo Brands disclosed 52 risk factors in its most recent earnings report. Primo Brands reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Primo Brands Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.77B | 42.30 | 23.19% | ― | 23.05% | 36.53% | |
73 Outperform | $339.00B | 21.03 | 43.62% | 2.92% | 6.51% | 27.16% | |
68 Neutral | $13.65B | 19.79 | 56.69% | 0.61% | 4.76% | -2.42% | |
66 Neutral | $5.32B | 15.03 | 16.56% | 3.98% | 0.39% | -3.22% | |
64 Neutral | $40.00B | 33.14 | 7.25% | 3.12% | 9.19% | 21.61% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | $7.40B | 101.61 | 1.89% | 2.44% | 134.19% | ― |
* Consumer Defensive Sector Average
PRMB
Primo Brands
20.38
-11.90
-36.86%
KOF
Coca Cola Femsa SAB De CV
101.58
12.27
13.74%
COKE
Coca-Cola Bottling Co Consolidated
205.07
86.62
73.12%
KO
Coca-Cola
78.76
9.48
13.68%
KDP
Keurig Dr Pepper
29.40
-3.54
-10.73%
COCO
Vita Coco Company
65.99
32.52
97.16%
Primo Brands Corporate Events
Executive/Board ChangesShareholder Meetings
Primo Brands Shareholders Endorse Board, Auditors, Executive Pay
Positive
Apr 30, 2026
On April 28, 2026, Primo Brands Corporation held its Annual Meeting of Stockholders, with approximately 96.1% of outstanding Class A common shares represented in person or by proxy as of the March 5, 2026 record date. Stockholders elected ten dire...
Business Operations and StrategyPrivate Placements and Financing
Primo Brands Refinances Term Loan, Extends Debt Maturity
Positive
Apr 1, 2026
On March 31, 2026, Primo Brands Corporation entered into a fifth amendment to its first lien credit agreement, refinancing its existing term loan maturing in March 2028 with a new senior secured first lien term loan facility totaling $3.09 billion...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.