Primo Water (PRMW) vs. Its Peers Financial Analysis

Primo Water (NYSE:PRMWGet Rating) is one of 18 publicly-traded companies in the “Bottled & canned soft drinks” industry, but how does it weigh in compared to its peers? We will compare Primo Water to related businesses based on the strength of its dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Primo Water and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primo Water 1 1 5 0 2.57
Primo Water Competitors 216 762 1021 36 2.43

Primo Water presently has a consensus target price of $19.30, indicating a potential upside of 31.56%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 34.76%. Given Primo Water’s peers higher possible upside, analysts plainly believe Primo Water has less favorable growth aspects than its peers.

Dividends

Primo Water pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. Primo Water pays out -1,400.0% of its earnings in the form of a dividend. As a group, “Bottled & canned soft drinks” companies pay a dividend yield of 1.3% and pay out 28.0% of their earnings in the form of a dividend. Primo Water is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Primo Water and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Primo Water $2.07 billion -$3.20 million -733.50
Primo Water Competitors $5.73 billion $413.32 million -101.43

Primo Water’s peers have higher revenue and earnings than Primo Water. Primo Water is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Primo Water and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primo Water -0.15% 5.33% 1.94%
Primo Water Competitors 3.91% 0.12% 2.03%

Risk and Volatility

Primo Water has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Primo Water’s peers have a beta of 1.10, indicating that their average share price is 10% more volatile than the S&P 500.

Insider and Institutional Ownership

93.4% of Primo Water shares are held by institutional investors. Comparatively, 51.0% of shares of all “Bottled & canned soft drinks” companies are held by institutional investors. 5.9% of Primo Water shares are held by insiders. Comparatively, 17.0% of shares of all “Bottled & canned soft drinks” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Primo Water peers beat Primo Water on 8 of the 15 factors compared.

About Primo Water (Get Rating)

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 equipment, and coffee; as well as water dispensers, and self-service refill drinking water. The company offers its products under the Primo, Alhambra, Crystal Rock, Mountain Valley, Deep Rock, Hinckley Springs, Crystal Springs, Kentwood Springs, Mount Olympus, Pureflo, Nursery, Sierra Springs, Sparkletts, Clear Mountain Natural Spring Water, Earth2O, Renü, Water Event Pure Water Solutions, Canadian Springs, Labrador Source, Decantae, Eden, Eden Springs, Chateaud'eau, and Mey Eden brands. It provides its services to residential customers, small and medium-sized businesses, and regional and national corporations and retailers. The company was formerly known as Cott Corporation and changed its name to Primo Water Corporation in March 2020. Primo Water Corporation was incorporated in 1955 and is headquartered in Tampa, Florida.

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