Primo Brands Corporation (PRMB)
NYSE:PRMB
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Primo Brands
(NYSE:PRMB)
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Rating:63Neutral
Price Target:
$25.00
▲(19.67% Upside)
Action:Reiterated
Date:05/20/26
PRMB scores as a balanced setup: strong revenue growth and cash generation underpin the financial profile, and technicals show a clear uptrend. The overall score is held back by very thin/pressured profitability and an expensive valuation (high P/E), while the latest earnings update is moderately positive on sales and cash flow but mixed on near-term margins.
Positive Factors
Revenue & Cash Generation
Sustained top-line momentum with strong free cash flow provides durable funding for reinvestment, capacity additions, dividends and buybacks. Consistent FCF cushions the business against earnings volatility and supports strategic initiatives over the next 2–6 months and beyond.
Negative Factors
Thin Profitability
Very low net margins and falling operating margins constrain return on equity and limit the firm's ability to absorb cost shocks or fund growth from earnings. Persistent margin pressure makes earnings volatile and reduces long-term capital allocation optionality despite strong revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Cash Generation
Sustained top-line momentum with strong free cash flow provides durable funding for reinvestment, capacity additions, dividends and buybacks. Consistent FCF cushions the business against earnings volatility and supports strategic initiatives over the next 2–6 months and beyond.
Read all positive factors
Primo Brands (PRMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.38B
Dividend Yield2.44%
Average Volume (3M)4.17M
Price to Earnings (P/E)62.7
Beta (1Y)0.45
Revenue Growth66.61%
EPS GrowthN/A
CountryUS
Employees13,000
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)0.16
Shares Outstanding362,868,560
10 Day Avg. Volume4,827,912
30 Day Avg. Volume4,174,688
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 Cap1.66
Enterprise Value/Revenue2.09
Enterprise Value/Gross Profit7.07
Enterprise Value/Ebitda12.59
Forecast
1Y Price Target
$27.10Price Target Upside29.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)1.27
Revenue Forecast (FY)$6.77B
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 equipmen...
How the Company Makes Money
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Primo Brands Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone: management reported a return to comparable top-line growth, meaningful operational progress in direct delivery (OTIF >90%, approaching customer breakeven), strong premium brand performance (+43%), improved cash flow and proactive balance-sheet actions (refinancing, liquidity, buybacks and dividend). However, near-term profitability was pressured by deliberate investments to stabilize service, winter-weather and freight impacts, and unexpected oil-related commodity volatility that prompted a wider adjusted EBITDA guidance range and Y/Y margin compression. Management presented clear mitigation levers (hedging, pricing, productivity, revenue growth management) and expects margin recovery later in the year as costs normalize and growth continues.Positive Updates
Top-Line Growth and Raised Sales Guidance
Q1 net sales of $1.63 billion, up 1.7% on a comparable basis year-over-year. Company raised 2026 comparable organic net sales guidance to 1%–3% (previously flat to 1%) based on broad-based top-line momentum.
Negative Updates
Adjusted EBITDA Decline and Margin Pressure
Comparable adjusted EBITDA decreased $35.5 million to $306 million (down ~10.4%). Comparable adjusted EBITDA margin declined 260 basis points to 18.8% year-over-year, reflecting elevated operating investments and cost pressures.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Growth and Raised Sales Guidance
Q1 net sales of $1.63 billion, up 1.7% on a comparable basis year-over-year. Company raised 2026 comparable organic net sales guidance to 1%–3% (previously flat to 1%) based on broad-based top-line momentum.
Read all positive updates
Company Guidance
Primo updated 2026 guidance with comparable organic net sales growth raised to 1%–3% (base comparable 2025 net sales $6.635 billion) and an adjusted EBITDA range of $1.465 billion to $1.515 billion (midpoint implying a 22.0% adjusted EBITDA margin — ~50 bps lower than prior guidance but ~20 bps higher versus prior year), while reaffirming adjusted free cash flow of $790 million–$810 million. Q1 results that informed the update included comparable net sales of $1.63 billion (+1.7% comparable; price/mix +1.3%, volume +0.4%), comparable adjusted EBITDA of $306 million (down 10.4%) and a Q1 adjusted EBITDA margin of 18.8% (down 260 bps); direct delivery is expected to move from down ~3% in Q1 to near breakeven in Q2 and modest growth in H2. Management expects capex of roughly 4% of net sales plus ~ $100 million of integration capex (Q1 capex $118.1M, $47.2M integration), sees $874 million of available liquidity with net leverage of 3.52x, is extending diesel hedges into 2027 and retains $78.3 million available under its buyback program while initiating a $0.12 quarterly dividend.Primo Brands Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.68B | 6.66B | 5.15B | 4.70B | 1.69B | 2.07B |
| Gross Profit | 1.97B | 2.14B | 1.62B | 1.35B | 1.02B | 1.16B |
| EBITDA | 1.11B | 1.08B | 693.60M | 711.70M | 328.00M | 294.20M |
| Net Income | 58.70M | 60.10M | -16.40M | 92.80M | 29.60M | -3.20M |
Balance Sheet | ||||||
| Total Assets | 10.59B | 10.60B | 11.19B | 5.15B | 3.67B | 3.72B |
| Cash, Cash Equivalents and Short-Term Investments | 288.20M | 376.90M | 614.40M | 47.00M | 78.80M | 128.40M |
| Total Debt | 5.71B | 5.73B | 5.68B | 4.05B | 1.62B | 1.74B |
| Total Liabilities | 7.63B | 7.61B | 7.75B | 5.15B | 2.38B | 2.40B |
| Stockholders Equity | 2.96B | 2.99B | 3.44B | 2.70M | 1.28B | 1.32B |
Cash Flow | ||||||
| Free Cash Flow | 337.75M | 310.00M | 317.00M | 117.30M | 119.50M | 95.10M |
| Operating Cash Flow | 758.44M | 687.40M | 467.20M | 320.90M | 281.60M | 247.10M |
| Investing Cash Flow | -379.53M | -299.10M | 474.40M | -217.60M | -181.50M | -242.70M |
| Financing Cash Flow | -545.63M | -634.20M | -366.40M | -162.30M | -102.80M | 10.80M |
Primo Brands Technical Analysis
Positive
20.89
Price Trends
20.36
Positive
19.72
Positive
20.09
Positive
Market Momentum
0.85
Negative
62.09
Neutral
42.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRMB, the sentiment is Positive. The current price of 20.89 is below the 20-day moving average (MA) of 21.70, above the 50-day MA of 20.36, and above the 200-day MA of 20.09, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 62.09 is Neutral, neither overbought nor oversold. The STOCH value of 42.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.50B | 22.45 | 25.43% | ― | 23.05% | 36.53% | |
78 Outperform | $349.23B | 21.03 | 43.62% | 2.92% | 6.74% | 27.16% | |
67 Neutral | $5.64B | 169.26 | 16.39% | 3.98% | 6.57% | -0.27% | |
65 Neutral | $39.16B | 33.14 | 7.25% | 3.12% | 9.19% | 21.61% | |
63 Neutral | $8.38B | 62.69 | 1.90% | 2.44% | 66.61% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | $11.74B | 24.66 | 122.90% | 0.61% | 8.81% | 14.00% |
* Consumer Defensive Sector Average
PRMB
Primo Brands
23.49
-7.77
-24.84%
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COKE
Coca-Cola Bottling Co Consolidated
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KO
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16.82%
KDP
Keurig Dr Pepper
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COCO
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Primo Brands Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Primo Brands Shareholders Endorse Board, Auditors, Executive Pay
Positive
Apr 30, 2026
On April 28, 2026, Primo Brands Corporation held its Annual Meeting of Stockholders, with approximately 96.1% of outstanding Class A common shares represented in person or by proxy as of the March 5, 2026 record date. Stockholders elected ten dire...
Business Operations and StrategyPrivate Placements and Financing
Primo Brands Refinances Term Loan, Extends Debt Maturity
Positive
Apr 1, 2026
On March 31, 2026, Primo Brands Corporation entered into a fifth amendment to its first lien credit agreement, refinancing its existing term loan maturing in March 2028 with a new senior secured first lien term loan facility totaling $3.09 billion...
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.