Primo Brands (PRMB) AI Stock Analysis

• Market Cap: $6.05B
• Dividend Yield: 2.46%
• Average Volume (3M): 9.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• 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: 370,285,830
• 10 Day Avg. Volume: 7,399,100
• 30 Day Avg. Volume: 9,157,656
• 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: 2.24
• Enterprise Value/Revenue: 2.08
• Enterprise Value/Gross Profit: 6.70
• Enterprise Value/Ebitda: 15.48
• 1Y Price Target: $26.10
• Price Target Upside: 57.80% 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: $17.00 ▲(2.78% Upside)

Primo Brands' overall score is driven by mixed financial performance and bearish technical indicators. While the earnings call provides some optimism with leadership changes and growth in premium segments, profitability and operational challenges weigh heavily. The valuation reflects current financial struggles, suggesting a cautious outlook.

Positive Factors

Premium Water Portfolio Growth

The significant growth in the premium water segment indicates strong demand and market positioning, which can drive long-term revenue expansion and brand strength.

Strong Liquidity Position

A robust liquidity position provides financial flexibility to invest in growth opportunities and manage operational challenges, supporting long-term stability.

Leadership Transition

The appointment of an experienced leader can drive strategic initiatives and operational improvements, potentially enhancing long-term performance and shareholder value.

Negative Factors

Year-Over-Year Revenue Decline

A decline in revenue suggests challenges in maintaining market share and sales momentum, which could impact long-term growth prospects if not addressed.

Challenges in Direct Delivery Business

Persistent issues in the direct delivery segment may hinder operational efficiency and customer satisfaction, affecting long-term profitability and market competitiveness.

Cost and Operational Challenges

Rising operational costs can pressure margins and profitability, necessitating strategic cost management to sustain long-term financial health.

Primo Brands Business Overview & Revenue Model

Company Description

Primo Brands (PRMB) is a dynamic company operating primarily in the consumer goods sector, specializing in the development and distribution of premium food and beverage products. The company focuses on delivering high-quality, innovative offerings that cater to health-conscious consumers, including organic snacks, beverages, and meal solutions. With a commitment to sustainability and quality, Primo Brands aims to enhance the everyday lives of its customers through products that are both nutritious and enjoyable.

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: Negative
• Last Price: 16.54
• 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 16.54 is above the 20-day moving average (MA) of 15.72, below the 50-day MA of 19.47, and below the 200-day MA of 26.94, indicating a neutral trend. The MACD of -1.03 indicates Negative momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 80.72 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
KO	78 Outperform	$303.99B	23.40	45.12%	2.90%	2.93%	25.42%
KOF	74 Outperform	$4.66B	15.52	16.18%	3.78%	-2.81%	-2.66%
COCO	74 Outperform	$3.11B	47.25	24.02%	―	23.12%	16.20%
COKE	71 Outperform	$13.89B	25.15	41.92%	0.61%	4.22%	22.24%
KDP	71 Outperform	$38.22B	24.24	6.29%	3.22%	6.77%	-29.84%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PRMB	57 Neutral	$6.05B	―	-2.08%	2.46%	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.

The most recent analyst rating on (PRMB) stock is a Hold with a $18.50 price target. To see the full list of analyst forecasts on Primo Brands stock, see the PRMB Stock Forecast page.

Primo Brands Reports Strong Q3 2025 Results

Primo Brands Corporation is a leading North American beverage company specializing in healthy hydration products, offering a diverse range of responsibly sourced beverages and water dispensers across various channels and consumer occasions.

Primo Water’s Earnings Call: Transition and Growth

Primo Water Corporation’s recent earnings call reflects a company in transition, with a balanced sentiment of optimism and challenges. Under new leadership, the company is poised to address integration hurdles while seizing market opportunities. Significant growth areas, particularly in premium water and market share gains, are tempered by ongoing challenges in the direct delivery business and related costs. The sentiment is cautiously optimistic for future improvements under the new leadership.

Primo Brands Reports Strong Q3 2025 Financial Results and Revises Full-Year Guidance

Primo Brands Corporation reported strong financial results for the third quarter of 2025, with net sales reaching $1,766.1 million, marking a $36 million increase from the previous quarter. The company experienced double-digit net sales growth in its premium water brands and improved performance in its home and office direct delivery business. Primo Brands revised its full-year guidance for net sales and adjusted EBITDA while reaffirming its cost synergy targets, indicating a positive outlook for stakeholders and reinforcing its competitive positioning in the market.

The most recent analyst rating on (PRMB) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Primo Brands stock, see the PRMB Stock Forecast page.

Primo Brands Reports Strong Q3 2025 Results and Announces Leadership Change

Primo Brands reported a robust third quarter of 2025, with net sales reaching $1.8 billion, marking a 35.3% increase compared to the previous year. The growth was driven by the merger with Blue Triton Brands and increased volumes, despite a decrease due to the sale of a production facility. The company revised its full-year net sales and EBITDA guidance while maintaining its free cash flow guidance. Additionally, a leadership transition was announced, with Eric Foss appointed as Chairman and CEO. The company continues to focus on capturing cost synergies and achieving operational milestones post-merger.

The most recent analyst rating on (PRMB) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Primo Brands stock, see the PRMB Stock Forecast page.

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.