Primo Brands (PRMB) AI Stock Analysis

• Market Cap: $8.46B
• Dividend Yield: 5.34%
• Average Volume (3M): 3.55M
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• 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): 0.41
• Shares Outstanding: 373,520,970
• 10 Day Avg. Volume: 3,170,275
• 30 Day Avg. Volume: 3,547,227
• 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: 1.95
• Enterprise Value/Revenue: 2.53
• Enterprise Value/Gross Profit: 8.15
• Enterprise Value/Ebitda: 23.25
• 1Y Price Target: $30.91
• Price Target Upside: 74.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $18.50 ▲(4.52% Upside)

Primo Brands' overall stock score is driven by a mix of financial performance and technical analysis. The company's strong cash flow management and revenue growth are positive, but profitability and leverage issues weigh heavily. Technical indicators suggest bearish momentum, adding downside risk. The earnings call provides a balanced outlook with potential for improvement under new leadership, but challenges remain. The high dividend yield is attractive, yet overshadowed by valuation concerns due to net losses.

Positive Factors

Strong Cash Flow Management

Primo Brands' robust cash flow management indicates effective operational cash conversion and liquidity, supporting long-term financial stability.

Premium Water Portfolio Growth

The significant growth in the premium water segment suggests strong market demand and potential for sustained revenue expansion in this category.

Leadership Transition

New leadership with experience in global consumer businesses may drive strategic improvements and address integration challenges effectively.

Negative Factors

High Debt Levels

High leverage poses financial risks, potentially limiting the company's ability to invest in growth and manage economic downturns.

Profitability Challenges

Ongoing profitability issues could hinder long-term financial health and shareholder returns, necessitating strategic cost management.

Revenue Decline

Declining sales indicate potential market challenges and competitive pressures, impacting growth prospects and necessitating strategic adjustments.

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 high-quality products across various categories, including food and beverages, household goods, and personal care items. The company focuses on innovation and sustainability, aiming to meet the evolving needs of consumers while maintaining a commitment to environmental responsibility. With a diverse portfolio that includes both well-established brands and emerging products, Primo Brands is positioned to capture market share in a competitive landscape.

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 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	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	708.50M	693.60M	711.70M	328.00M	294.20M	131.20M
Net Income	-60.90M	-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	684.10M	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	124.10M	272.90M	103.20M	-228.40M	135.70M	52.90M
Operating Cash Flow	351.30M	463.80M	320.90M	108.30M	256.90M	176.20M
Investing Cash Flow	416.20M	474.40M	-217.60M	-319.40M	-240.90M	-178.00M
Financing Cash Flow	-588.00M	-362.90M	-162.30M	-147.70M	-800.00K	-91.10M

Primo Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 17.7 is below the 20-day moving average (MA) of 21.93, below the 50-day MA of 22.65, and below the 200-day MA of 28.74, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 22.32 is Positive, neither overbought nor oversold. The STOCH value of 46.05 is Neutral, 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	$295.35B	22.73	45.12%	2.92%	2.93%	25.42%
COCO	78 Outperform	$2.38B	36.17	24.02%	―	23.12%	16.20%
KOF	74 Outperform	$4.54B	14.97	16.18%	3.90%	-2.81%	-2.66%
COKE	71 Outperform	$11.42B	20.67	41.92%	0.74%	4.22%	22.24%
KDP	69 Neutral	$35.95B	22.80	6.29%	3.49%	6.77%	-29.84%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PRMB	57 Neutral	$8.46B	-153.11	-2.15%	5.34%	162.92%	-107.26%

Primo Brands Corporate Events

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.

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.