Primo Brands (PRMB) AI Stock Analysis

• Market Cap: $10.63B
• Dividend Yield: 4.29%
• Average Volume (3M): 6.92M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.25
• Revenue Growth: 90.28%
• EPS Growth: -105.48%
• Country: US
• Employees: 13,000
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.29
• Shares Outstanding: 376,422,940
• 10 Day Avg. Volume: 4,039,858
• 30 Day Avg. Volume: 6,923,174
• PEG Ratio: 1.72
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 77.28
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 14.64
• Enterprise Value/Ebitda: 8.15
• 1Y Price Target: $41.14
• Price Target Upside: 47.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 62 Neutral
• Price Target: $31.00 ▲(10.79%Upside)

Primo Brands' overall stock score reflects a mixed financial performance with strong revenue growth but profitability challenges. The positive earnings call and strategic stock repurchase are significant strengths, while technical indicators suggest bearish momentum. High leverage and valuation concerns also weigh on the score.

Positive Factors

Analyst Recommendation

Analyst's recommendation is to buy PRMB stock with a price objective of 39.00 USD, indicating potential for growth from the current price.

Growth Potential

The recent stock weakness presents an opportune long-term entry point, with PRMB trading at a 20% discount to US-focused peers.

Market Position

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

Negative Factors

Retail Sales

Retail sales declined -7.9% YoY due to a tough comparison from the previous year.

Sales Performance

PRMB shares declined nearly 20% due to weaker scanner data driven by unusually wet spring weather and short-term integration hiccups in the direct delivery business.

Weather Impact

Ozarka was negatively impacted by flooding in Texas, affecting its sales performance.

Primo Brands Business Overview & Revenue Model

Company Description

Primo Brands (PRMB) is a dynamic company operating primarily in the consumer packaged goods sector, focusing on the development and distribution of premium lifestyle products. With a diverse portfolio that includes health and wellness items, food and beverages, and home goods, Primo Brands is committed to enhancing everyday living through quality and innovation. The company targets both retail and wholesale markets, providing products that cater to health-conscious consumers and those seeking high-quality lifestyle enhancements.

How the Company Makes Money

Primo Brands generates revenue through multiple key streams, primarily from the sale of its diverse product lines across various retail channels, including supermarkets, specialty stores, and e-commerce platforms. The company utilizes a direct-to-consumer sales model alongside traditional retail partnerships to maximize its market reach. Additionally, Primo Brands engages in strategic collaborations with other brands and distributors to expand its product offerings and penetrate new markets. Licensing agreements for certain proprietary products also contribute to revenue, providing a steady income from royalties. The focus on high-margin health and wellness products further enhances profitability, while ongoing investments in marketing and brand development aim to increase customer loyalty and drive repeat purchases.

Primo Brands Financial Statement Overview

Summary

Primo Brands shows strong revenue growth and cash flow management but faces profitability challenges and high leverage. The income statement reflects positive sales trends, while the balance sheet highlights financial risks due to high debt levels. The cash flow statement indicates solid liquidity and operational cash management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.15B	4.70B	4.44B	1.58B	1.95B
Gross Profit	1.62B	1.35B	994.20M	891.00M	1.11B
EBITDA	693.60M	711.70M	358.20M	241.10M	131.20M
Net Income	-16.40M	92.80M	-126.70M	-3.20M	-131.70M
Balance Sheet
Total Assets	11.19B	5.15B	5.38B	3.72B	3.60B
Cash, Cash Equivalents and Short-Term Investments	613.70M	44.70M	102.90M	128.40M	115.10M
Total Debt	5.68B	4.05B	3.92B	1.74B	1.65B
Total Liabilities	7.75B	5.15B	5.25B	2.40B	2.26B
Stockholders Equity	3.44B	2.70M	134.60M	1.32B	1.35B
Cash Flow
Free Cash Flow	272.90M	103.20M	-228.40M	135.70M	52.90M
Operating Cash Flow	463.80M	320.90M	108.30M	256.90M	176.20M
Investing Cash Flow	474.40M	-217.60M	-319.40M	-240.90M	-178.00M
Financing Cash Flow	-362.90M	-162.30M	-147.70M	-800.00K	-91.10M

Primo Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 27.98 is below the 20-day moving average (MA) of 29.14, below the 50-day MA of 30.04, and below the 200-day MA of 30.65, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 35.47 is Neutral, neither overbought nor oversold. The STOCH value of 11.14 is Positive, 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
COKE	79 Outperform	$10.09B	19.35	41.45%	5.18%	3.22%	23.88%
KDP	78 Outperform	$45.98B	30.03	6.18%	2.72%	4.63%	-28.22%
FIZZ	76 Outperform	$4.31B	23.56	37.23%	―	0.81%	5.51%
CELH	74 Outperform	$12.11B	151.03	9.19%	―	-5.98%	-65.57%
KOF	66 Neutral	$4.35B	14.62	16.78%	3.86%	-4.05%	-3.69%
Sector *	65 Neutral	$27.10B	15.29	-1.16%	3.10%	1.15%	2.75%
PRMB	62 Neutral	$10.63B	20.07	-2.83%	4.29%	90.28%	-105.48%

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.