Primo Brands (PRMB) AI Stock Analysis

• Market Cap: $11.56B
• Dividend Yield: 1.31%
• Average Volume (3M): 8.11M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.24
• Revenue Growth: 90.28%
• EPS Growth: -105.48%
• Country: US
• Employees: 13,000
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.29
• Shares Outstanding: 376,422,940
• 10 Day Avg. Volume: 10,772,395
• 30 Day Avg. Volume: 8,107,402
• 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: 0.28
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 1.29
• 1Y Price Target: $41.22
• Price Target Upside: 37.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 64 Neutral
• Price Target: $35.00 ▲(16.47%Upside)

Primo Brands' overall stock score reflects strong financial performance and strategic initiatives, particularly highlighted by robust earnings call outcomes and positive corporate events like the stock repurchase. However, the negative valuation metrics and bearish technical indicators weigh down the score, suggesting a cautious approach for investors.

Positive Factors

Growth Potential

The recent weakness in PRMB shares presents an opportune long-term entry point in an attractive growth story aligned with health and wellness trends.

Market Positioning

PRMB is poised to benefit from competitive dynamics as a pure-play water company with Coke and Pepsi de-emphasizing bulk water.

Weather Influence

Hotter and drier weather is expected to support better year-over-year growth for Primo Brands.

Negative Factors

Sales Performance

Scanned sales showed renewed weakness with a decline of -4.5% year-over-year.

Sales Volatility

The selloff in Primo Brands shares followed by a deceleration in scanner data suggests volatility and potential challenges in maintaining steady sales growth.

Weather Challenges

PRMB shares have been soft as wet and cool weather across the Northeast and Mid-Atlantic impacted consumption.

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 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
EBITDA	292.70M	693.60M	711.70M	358.20M	241.10M	131.20M
Net Income	-114.30M	-16.40M	92.80M	-126.70M	-3.20M	-131.70M
Balance Sheet
Total Assets	11.19B	11.19B	5.15B	5.38B	3.72B	3.60B
Cash, Cash Equivalents and Short-Term Investments	613.70M	613.70M	44.70M	102.90M	128.40M	115.10M
Total Debt	5.68B	5.68B	4.05B	3.92B	1.74B	1.65B
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: 30.05
• 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 Negative. The current price of 30.05 is above the 20-day moving average (MA) of 29.74, below the 50-day MA of 31.12, and below the 200-day MA of 30.31, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 73.04 is Neutral, 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	$11.79B	145.14	9.19%	―	-5.98%	-65.57%
FIZZ	78 Outperform	$4.37B	22.86	37.23%	―	0.81%	5.51%
COKE	77 Outperform	$10.11B	20.17	36.83%	0.86%	3.21%	31.84%
KOF	74 Outperform	$5.17B	16.48	17.12%	1.88%	1.54%	4.48%
KDP	72 Outperform	$46.22B	30.82	6.13%	2.70%	3.95%	-28.73%
PRMB	64 Neutral	$11.56B	20.07	-2.83%	1.31%	90.28%	-105.48%
Sector *	50 Neutral	AU$2.24B	-0.25	-14.39%	12.25%	7.38%	-60.19%

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.