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Primo Brands
(NYSE:PRMB)
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Rating:57Neutral
Price Target:
$24.00
▲(2.78% Upside)
Action:Reiterated
Date:08/05/26
PRMB scores mid-range primarily due to a serviceable but not high-quality financial profile (thin/volatile net profitability, elevated leverage, and softer recent free cash flow) and weak-to-neutral technical setup. These are partially offset by a constructive earnings call with raised sales guidance and improving cash flow/leverage, while valuation remains a notable headwind given the very high P/E.
Positive Factors
Top‑line scale & momentum
Sustained revenue scale provides durable advantages: broader retail distribution, stronger negotiating leverage with suppliers, and better fixed-cost absorption. Higher sales momentum supports continued reinvestment and organic growth initiatives, improving resilience over the next several quarters.
Negative Factors
Elevated leverage
Leverage materially above target constrains strategic optionality and increases earnings sensitivity to interest or cash-flow shocks. Continued need to delever will compete with growth investments and shareholder returns, making capital allocation choices more constrained over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Top‑line scale & momentum
Sustained revenue scale provides durable advantages: broader retail distribution, stronger negotiating leverage with suppliers, and better fixed-cost absorption. Higher sales momentum supports continued reinvestment and organic growth initiatives, improving resilience over the next several quarters.
Read all positive factors
Primo Brands (PRMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.45B
Dividend Yield2%
Average Volume (3M)2.72M
Price to Earnings (P/E)83.3
Beta (1Y)0.57
Revenue Growth28.37%
EPS GrowthN/A
CountryUS
Employees12,000
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)0.28
Shares Outstanding361,943,700
10 Day Avg. Volume2,176,674
30 Day Avg. Volume2,720,769
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.11Price Target Upside28.96% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1.28
Revenue Forecast (FY)$6.84B
Primo Brands Business Overview & Revenue Model
Company Description
Primo Brands Corp. is a branded beverage company, which focuses on healthy hydration. It delivers sustainably and domestically sourced diversified offerings across products, formats, channels, price points and consumer occasions, distributed in th...
How the Company Makes Money
Primo Brands makes money primarily by selling packaged water products and water services through multiple channels. Key revenue streams typically include: (1) Packaged water sold through retail and e-commerce channels (e.g., multi-pack bottled wat...
Primo Brands Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed constructive momentum across the business: comparable net sales and adjusted EBITDA grew, retail and premium segments delivered strong performance, direct delivery showed an earlier-than-expected inflection back to growth with improving operational metrics, and liquidity and cash flow strengthened. Offsetting these positives were persistent volume weakness in direct delivery, elevated transportation/freight costs, continued integration and reinvestment headwinds, and net leverage that remains above management's target. Overall, the positives (top-line beat, guidance raise, margin and cash-flow improvements, and clear operational progress) outweigh the negatives, though execution and cost pressures warrant close monitoring.Positive Updates
Comparable Net Sales Growth
Second quarter comparable net sales of $1.8 billion, up 4.2% year-over-year, marking a second consecutive quarter of year-over-year growth and outperforming expectations.
Negative Updates
Direct Delivery Volume Weakness
Direct delivery growth was driven by price/mix despite lower volume; volume contribution was negative (volume was -0.1% contribution to comparable net sales), reflecting a smaller customer base and ongoing need to rebuild volumes.
Read all updates
Q2-2026 Updates
Positive
Negative
Comparable Net Sales Growth
Second quarter comparable net sales of $1.8 billion, up 4.2% year-over-year, marking a second consecutive quarter of year-over-year growth and outperforming expectations.
Read all positive updates
Company Guidance
Management raised 2026 comparable net sales guidance to 2–4% (from 1–3%), which on the $6.635B comparable 2025 base implies FY26 comparable sales of roughly $6.77–$6.90B (midpoint ≈ $6.83B); they reaffirmed adjusted EBITDA of $1.465–$1.515B (midpoint $1.49B), implying a midpoint adjusted EBITDA margin of 21.8% (flat YoY), and kept adjusted free cash flow guidance at $790–$810M (midpoint $800M). They reiterated annual capex of ~4% of net sales plus ≈$100M of 2026 integration capex (≈$18M remaining at Q2); Q2 highlights cited on the call included comparable net sales +4.2%, Q2 adjusted EBITDA $385M (margin 21.4%, +10 bps YoY, +260 bps sequential), cash flow from operations $227.9M (adjusted $266.4M), Q2 adjusted free cash flow $200.1M (+$30.4M YoY), Q2 capex $104.6M (of which $35M was integration), net leverage improving to 3.42x from 3.52x (targeting <3.0x), liquidity ~$953M, $15.5M of share repurchases in Q2 with $62.8M remaining under the program, and a reaffirmed quarterly dividend of $0.12 ($0.48 annualized) — management said they will continue to invest behind growth while managing transportation and commodity cost pressures and expect free cash flow quality to improve through the year.Primo Brands Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
54
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.74B | 6.66B | 5.15B | 4.70B | 1.69B | 2.07B |
| Gross Profit | 1.98B | 2.14B | 1.62B | 1.35B | 1.02B | 1.16B |
| EBITDA | 1.21B | 1.08B | 693.60M | 711.70M | 328.00M | 294.20M |
| Net Income | 100.30M | 60.10M | -16.40M | 92.80M | 29.60M | -3.20M |
Balance Sheet | ||||||
| Total Assets | 10.64B | 10.60B | 11.19B | 5.15B | 3.67B | 3.72B |
| Cash, Cash Equivalents and Short-Term Investments | 366.80M | 376.90M | 614.40M | 47.00M | 78.80M | 128.40M |
| Total Debt | 5.70B | 5.73B | 5.68B | 4.05B | 1.62B | 1.74B |
| Total Liabilities | 7.66B | 7.61B | 7.75B | 5.15B | 2.38B | 2.40B |
| Stockholders Equity | 2.98B | 2.99B | 3.44B | 2.70M | 1.28B | 1.32B |
Cash Flow | ||||||
| Free Cash Flow | 378.53M | 310.00M | 317.00M | 117.30M | 119.50M | 95.10M |
| Operating Cash Flow | 828.71M | 687.40M | 467.20M | 320.90M | 281.60M | 247.10M |
| Investing Cash Flow | -418.16M | -299.10M | 474.40M | -217.60M | -181.50M | -242.70M |
| Financing Cash Flow | -452.02M | -634.20M | -366.40M | -162.30M | -102.80M | 10.80M |
Primo Brands Technical Analysis
Neutral
23.35
Price Trends
23.80
Negative
22.74
Positive
20.27
Positive
Market Momentum
-0.13
Positive
45.23
Neutral
10.33
Positive
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 23.35 is below the 20-day moving average (MA) of 23.47, below the 50-day MA of 23.80, and above the 200-day MA of 20.27, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 10.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $3.65B | 32.76 | 31.09% | ― | 26.10% | 69.15% | |
76 Outperform | $6.10B | 17.05 | 16.86% | 4.12% | 13.18% | 11.27% | |
76 Outperform | $394.29B | 27.05 | 42.99% | 2.53% | 7.42% | 17.58% | |
63 Neutral | $13.08B | 24.07 | -889.19% | 0.54% | 10.71% | 12.43% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $43.33B | 32.40 | 5.64% | 3.10% | 27.48% | -12.53% | |
57 Neutral | $8.45B | 83.32 | 3.32% | 1.94% | 28.37% | ― |
* Consumer Defensive Sector Average
PRMB
Primo Brands
22.98
-1.93
-7.77%
KOF
Coca Cola Femsa SAB De CV
114.81
31.47
37.77%
COKE
Coca-Cola Bottling Co Consolidated
194.02
77.34
66.29%
KO
Coca-Cola
90.08
23.15
34.58%
KDP
Keurig Dr Pepper
32.21
3.45
12.01%
COCO
Vita Coco Company
62.80
28.15
81.24%
Primo Brands Corporate Events
Business Operations and StrategyExecutive/Board Changes
Primo Brands Strengthens Board with New Director Appointment
Positive
Jul 17, 2026
On July 14, 2026, Primo Brands Corporation’s board accepted the resignation of director Minsok Pak, who stepped down after taking an executive role with another industry participant in line with the company’s governance guidelines and ...
Business Operations and StrategyExecutive/Board Changes
Primo Brands Streamlines Leadership, CEO Assumes Operations Role
Neutral
Jul 7, 2026
On July 2, 2026, Primo Brands’ Board of Directors decided that operations leadership will report directly to Chief Executive Officer Eric Foss, eliminating the Chief Operating Officer role to create a more streamlined leadership model. As pa...
Business Operations and StrategyExecutive/Board Changes
Primo Brands Expands Board, Appoints Andrea Brimmer Director
Positive
May 19, 2026
On May 15, 2026, Primo Brands Corporation expanded its Board of Directors from 10 to 11 members and appointed marketing executive Andrea Brimmer to fill the new seat, with a term running until the 2027 annual shareholders’ meeting, subject t...
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.