Primo Brands (PRMB) AI Stock Analysis

• Market Cap: $8.40B
• Dividend Yield: 5.38%
• Average Volume (3M): 5.69M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.20
• 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): 0.36
• Shares Outstanding: 373,520,970
• 10 Day Avg. Volume: 5,587,470
• 30 Day Avg. Volume: 5,692,327
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.96
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 9.03
• Enterprise Value/Ebitda: 24.22
• 1Y Price Target: $34.20
• Price Target Upside: 52.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 57 Neutral
• Price Target: $26.00 ▲(15.66% Upside)

Primo Brands' overall stock score reflects a mixed financial performance with strong revenue growth and cash flow management, but significant challenges in profitability and leverage. The technical analysis indicates a bearish trend, while the valuation shows a high dividend yield but negative P/E ratio. The earnings call suggests cautious optimism with efforts to address operational disruptions.

Positive Factors

Revenue Growth

Consistent revenue growth and effective cash flow management indicate a robust business model and expanding market presence, supporting long-term stability.

Premium Water Sales

Strong growth in premium water sales highlights successful product positioning and increasing consumer demand, bolstering future revenue streams.

Cash Flow Management

Robust cash flow generation enhances liquidity and financial flexibility, enabling strategic investments and resilience against market fluctuations.

Negative Factors

High Debt Levels

Significant leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and affecting long-term stability.

Operational Disruptions

Operational disruptions due to unforeseen events can impact sales and customer satisfaction, highlighting vulnerabilities in supply chain resilience.

Revised Financial Guidance

Lowered sales growth expectations reflect challenges in maintaining momentum, potentially affecting investor confidence and future profitability.

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 leverage. The income statement reflects positive sales trends, while the balance sheet highlights financial risks due to high debt levels. The cash flow statement provides a positive outlook with strong cash generation capabilities.

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	5.25B	5.15B	4.70B	1.69B	2.07B	1.95B
Gross Profit	1.82B	1.62B	1.35B	1.02B	1.16B	1.11B
EBITDA	680.10M	693.60M	711.70M	328.00M	294.20M	131.20M
Net Income	-70.80M	-16.40M	92.80M	29.60M	-3.20M	-185.40M
Balance Sheet
Total Assets	11.05B	11.19B	5.15B	3.67B	3.72B	3.60B
Cash, Cash Equivalents and Short-Term Investments	412.00M	614.40M	47.00M	78.80M	128.40M	115.10M
Total Debt	5.73B	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	3.25B	3.44B	2.70M	1.28B	1.32B	1.35B
Cash Flow
Free Cash Flow	176.70M	272.90M	103.20M	-228.40M	135.70M	52.90M
Operating Cash Flow	329.50M	463.80M	320.90M	108.30M	256.90M	176.20M
Investing Cash Flow	480.80M	474.40M	-217.60M	-319.40M	-240.90M	-178.00M
Financing Cash Flow	-496.00M	-362.90M	-162.30M	-147.70M	-800.00K	-91.10M

Primo Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 22.48 is below the 20-day moving average (MA) of 24.20, below the 50-day MA of 25.72, and below the 200-day MA of 30.22, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 28.02 is Positive, neither overbought nor oversold. The STOCH value of 5.83 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
COCO	77 Outperform	2.26B	36.79	21.69%	―	11.97%	16.10%
KO	74 Outperform	285.89B	23.54	42.62%	3.03%	1.34%	14.67%
KOF	73 Outperform	4.44B	14.83	16.54%	3.95%	-4.05%	-3.69%
COKE	72 Outperform	9.84B	18.86	35.92%	5.24%	3.22%	23.88%
KDP	67 Neutral	36.83B	24.05	6.15%	3.39%	4.63%	-28.22%
PRMB	57 Neutral	$8.40B	20.07	-2.15%	5.38%	162.92%	-107.26%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Primo Brands Corporate Events

Primo Brands Announces Executive Role Changes

On July 31, 2025, Primo Brands Corporation announced changes in its executive roles as part of the ongoing integration with Triton Water Parent, Inc. The company decided to combine the roles of General Counsel and Chief Administrative Officer, resulting in Marni Poe stepping down as General Counsel effective August 6, 2025. Hih Song Kim will take over as Chief Legal Officer and Corporate Secretary. Ms. Poe will assist with the transition until August 29, 2025, and will receive compensation according to the company’s severance and equity plans. Additionally, her equity awards will continue to vest in recognition of her contributions.