Primo Brands (PRMB) AI Stock Analysis

• Market Cap: $6.03B
• Dividend Yield: 2.44%
• Average Volume (3M): 7.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: 244.82%
• EPS Growth: -119.23%
• Country: US
• Employees: 13,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.41
• Shares Outstanding: 365,631,300
• 10 Day Avg. Volume: 6,155,765
• 30 Day Avg. Volume: 7,767,797
• PEG Ratio: 3.89
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 1.45
• P/FCF Ratio: 27.32
• Enterprise Value/Market Cap: 2.25
• Enterprise Value/Revenue: 2.08
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 15.48
• 1Y Price Target: $25.00
• Price Target Upside: 52.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 1.28
• Revenue Forecast (FY): $6.62B

• Rating: 57 Neutral
• Price Target: $16.00 ▼(-2.20% Downside)

Primo Brands faces significant challenges in profitability and technical trends, which weigh heavily on its overall score. However, strong revenue growth, improved leverage, and strategic initiatives like the share repurchase program provide some optimism. The balanced sentiment from the earnings call and the company's efforts to improve operational efficiency and market share are positive, but the stock remains under pressure due to current financial and technical weaknesses.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Primo's products, suggesting effective market strategies and product appeal, which can drive long-term business expansion.

Leadership Transition

New leadership with experience in global consumer businesses can bring fresh strategies and improvements, potentially enhancing operational efficiency and market positioning.

Share Repurchase Program

The expanded share repurchase program signals management's confidence in the company's future and can enhance shareholder value through reduced share count.

Negative Factors

Profitability Challenges

Ongoing profitability challenges indicate difficulties in cost management and pricing strategy, which could hinder long-term financial stability and growth.

Cash Flow Management

Negative free cash flow growth suggests potential issues in cash generation, which may impact the company's ability to invest in growth opportunities and manage debt.

Direct Delivery Business Challenges

Challenges in the direct delivery business could affect customer satisfaction and operational efficiency, potentially impacting revenue and market share.

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 food and beverage products directly to retailers and consumers. The company has established a robust distribution network that includes partnerships with major grocery chains, online retailers, and health food stores. Additionally, Primo Brands engages in e-commerce, allowing consumers to purchase products directly through its website. The company also benefits from strategic partnerships with suppliers and distributors, which enhance its market reach and reduce operational costs. Seasonal promotions, product bundling, and loyalty programs further contribute to revenue by encouraging repeat purchases and increasing customer retention.

Primo Brands Financial Statement Overview

Summary

Primo Brands shows strong revenue growth but struggles with profitability and cash flow generation. Improved leverage management is noted, yet negative returns on equity highlight inefficiencies. The company needs to enhance profitability and cash flow efficiency.

Income Statement

Primo Brands shows strong revenue growth with a 23.89% increase in TTM, indicating a positive trajectory. However, profitability is a concern with a negative net profit margin of -0.94% and declining EBIT and EBITDA margins. The gross profit margin remains healthy at 31.07%, suggesting efficient production processes.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.22 in TTM, reflecting better leverage management. However, the return on equity is negative at -1.85%, indicating inefficiencies in generating returns for shareholders. The equity ratio of 28.84% suggests a moderate reliance on equity financing.

Cash Flow

Operating cash flow remains positive, but free cash flow has decreased by 26.09% in TTM, raising concerns about cash generation. The operating cash flow to net income ratio is 0.25, indicating some challenges in converting income into cash. The free cash flow to net income ratio of 0.35 shows moderate efficiency in cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.51B	5.15B	4.70B	1.69B	2.07B	1.95B
Gross Profit	2.02B	1.62B	1.35B	1.02B	1.16B	1.11B
EBITDA	875.20M	693.60M	711.70M	328.00M	294.20M	131.20M
Net Income	-84.60M	-16.40M	92.80M	29.60M	-3.20M	-185.40M
Balance Sheet
Total Assets	10.96B	11.19B	5.15B	3.67B	3.72B	3.60B
Cash, Cash Equivalents and Short-Term Investments	422.70M	614.40M	47.00M	78.80M	128.40M	115.10M
Total Debt	5.70B	5.68B	4.05B	1.62B	1.74B	1.65B
Total Liabilities	7.80B	7.75B	5.15B	2.38B	2.40B	2.26B
Stockholders Equity	3.16B	3.44B	2.70M	1.28B	1.32B	1.35B
Cash Flow
Free Cash Flow	408.51M	317.00M	117.30M	119.50M	95.10M	62.20M
Operating Cash Flow	682.37M	467.20M	320.90M	281.60M	247.10M	176.20M
Investing Cash Flow	302.83M	474.40M	-217.60M	-181.50M	-242.70M	-178.00M
Financing Cash Flow	-763.66M	-366.40M	-162.30M	-102.80M	10.80M	-91.10M

Primo Brands Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRMB, the sentiment is Neutral. The current price of 16.36 is above the 20-day moving average (MA) of 16.11, below the 50-day MA of 17.99, and below the 200-day MA of 25.88, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 58.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRMB.

Primo Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KO	75 Outperform	$301.59B	23.21	45.12%	2.92%	2.93%	25.42%
KOF	74 Outperform	$5.03B	16.73	16.18%	3.98%	-2.81%	-2.66%
COCO	74 Outperform	$3.04B	46.20	24.02%	―	23.12%	16.20%
COKE	72 Outperform	$13.85B	25.07	41.92%	0.61%	4.22%	22.24%
KDP	71 Outperform	$38.04B	24.13	6.29%	3.12%	6.77%	-29.84%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PRMB	57 Neutral	$6.03B	-53.12	-2.08%	2.44%	244.82%	-119.23%

Primo Brands Corporate Events

Primo Brands Expands Share Repurchase Program by $50M

On November 9, 2025, Primo Brands Corporation’s Board of Directors approved a $50 million increase to its share repurchase program, raising the total authorization to $300 million. This move leaves approximately $202.3 million available for repurchases, allowing the company flexibility in purchasing shares through various methods, subject to market conditions and regulatory requirements. The program can be adjusted or terminated at the Board’s discretion.

Primo Brands COO Takes Temporary Leave of Absence

On September 9, 2025, Primo Brands Corporation announced that Robert Austin, the Chief Operating Officer, would take a temporary leave of absence starting September 30, 2025, during which he will serve as a Senior Advisor. The company’s CEO, Robbert Rietbroek, will assume the role of principal operating officer in the interim, with senior operations executives reporting directly to him.