Primo Brands (PRMB) AI Stock Analysis

• Market Cap: $8.32B
• Dividend Yield: 5.39%
• Average Volume (3M): 4.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: 162.92%
• EPS Growth: -107.26%
• Country: US
• Employees: 13,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.36
• Shares Outstanding: 373,520,970
• 10 Day Avg. Volume: 3,254,617
• 30 Day Avg. Volume: 4,322,385
• 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: 1.98
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 9.03
• Enterprise Value/Ebitda: 24.22
• 1Y Price Target: $31.80
• Price Target Upside: 41.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 61 Neutral
• Price Target: $23.50 ▲(4.72% Upside)

Primo Brands' overall stock score is driven by strong cash flow management and revenue growth, despite challenges in profitability and leverage. The earnings call provided a cautiously optimistic outlook, but technical indicators suggest a bearish trend. The high dividend yield is a positive, but the negative P/E ratio remains a concern.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Management

Strong cash flow generation enhances liquidity and provides the company with financial flexibility to invest in growth opportunities.

Premium Water Sales

Significant growth in premium water sales highlights successful product positioning and potential for increased market share in a growing segment.

Negative Factors

High Debt Levels

High leverage can strain financial resources and limit strategic flexibility, posing risks to long-term financial stability.

Operational Disruptions

Operational disruptions from unforeseen events can impact sales and operational efficiency, affecting short-term performance and customer trust.

Revised Financial Guidance

Lowered financial guidance reflects challenges in meeting growth targets, potentially impacting investor confidence and future 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 provides a positive outlook with strong cash generation capabilities.

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	5.25B	5.15B	4.70B	1.69B	2.07B	1.95B
Gross Profit	1.82B	1.62B	1.35B	1.02B	1.16B	1.11B
EBITDA	680.10M	693.60M	711.70M	328.00M	294.20M	131.20M
Net Income	-70.80M	-16.40M	92.80M	29.60M	-3.20M	-185.40M
Balance Sheet
Total Assets	11.05B	11.19B	5.15B	3.67B	3.72B	3.60B
Cash, Cash Equivalents and Short-Term Investments	412.00M	614.40M	47.00M	78.80M	128.40M	115.10M
Total Debt	5.73B	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	3.25B	3.44B	2.70M	1.28B	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: Neutral
• Last Price: 22.44
• 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 22.44 is above the 20-day moving average (MA) of 22.11, below the 50-day MA of 23.32, and below the 200-day MA of 29.27, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 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
COCO	77 Outperform	$2.36B	36.89	24.35%	―	11.97%	16.10%
KO	75 Outperform	$306.51B	23.58	45.12%	2.85%	2.70%	25.42%
KOF	74 Outperform	$4.43B	14.79	16.78%	4.06%	-4.05%	-3.69%
COKE	71 Outperform	$11.54B	22.12	41.45%	4.59%	3.22%	23.88%
KDP	67 Neutral	$37.70B	24.62	6.18%	3.36%	4.63%	-28.22%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PRMB	61 Neutral	$8.32B	―	-2.15%	5.39%	162.92%	-107.26%

Primo Brands Corporate Events

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.

The most recent analyst rating on (PRMB) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Primo Brands stock, see the PRMB Stock Forecast page.

Primo Water Corp’s Earnings Call: Growth Amid Challenges

The recent earnings call of Primo Water Corporation painted a mixed picture for investors. While the company celebrated significant achievements in premium water sales growth and synergy capture, it also faced operational challenges stemming from the integration process and weather-related sales impacts. This dual narrative reflects both optimism and caution as the company navigates its current landscape.

Primo Brands Reports Strong Q2 2025 Growth Amid Challenges

Primo Brands Corporation is a leading North American beverage company specializing in healthy hydration products, offering a wide range of responsibly sourced beverages and water dispensers across various channels in the U.S. and Canada. In its second quarter of 2025, Primo Brands reported a significant increase in net sales by 31.6% to $1.7 billion, primarily driven by the merger with Primo Water, despite challenges like tornado damage and integration service issues. The company revised its full-year guidance for net sales growth, Adjusted EBITDA, and Adjusted Free Cash Flow due to these disruptions but remains confident in achieving cost synergies of $200 million in 2025 and $300 million in 2026. Key financial metrics showed a 42.1% increase in Adjusted EBITDA to $366.7 million, while net income from continuing operations decreased to $30.5 million. The company also announced a new $250 million share repurchase program and declared a quarterly dividend of 10 cents per share. Looking ahead, Primo Brands is optimistic about resolving service issues by the end of September and maintaining strong consumer demand for its products, positioning itself for future growth and shareholder value returns.

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.