Fact based stock research
Primo Water (TSX:BCB)
CA74167P1080
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
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Primo Water stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 74 (better than 74% compared with investment alternatives), Primo Water (Soft Drinks, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Primo Water are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 89) and are safely financed (Safety Rank of 52, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 74, is a buy recommendation based on Primo Water's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Primo Water exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 89). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 52) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Soft Drinks |
| Index | TSX Composite |
| Size class | Large |
2-May-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Primo Water
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 67 |
|
57 |
|
62 |
|
45 |
|
| GROWTH | ||||||||
| GROWTH | 11 |
|
23 |
|
25 |
|
89 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
1 |
|
4 |
|
52 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
62 |
|
90 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
15 |
|
37 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 74 (better than 74% compared with investment alternatives), Primo Water (Soft Drinks, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Primo Water are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives). But they show above-average growth (Growth Rank of 89) and are safely financed (Safety Rank of 52, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 74, is a buy recommendation based on Primo Water's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Primo Water exhibits low value (Obermatt Value Rank of 45), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 89). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 52) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 67 |
|
57 |
|
62 |
|
45 |
|
| GROWTH | ||||||||
| GROWTH | 11 |
|
23 |
|
25 |
|
89 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
1 |
|
4 |
|
52 |
|
| COMBINED | ||||||||
| COMBINED | 1 |
|
6 |
|
6 |
|
74 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Primo Water shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Primo Water. Expected dividend yields are higher than for 55% of comparable companies (a Dividend Yield rank of 55), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 57, which means that the stock price is lower compared with invested capital than for 57% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 48 which means that the stock price compared with what market professionals expect for future profits is higher than for 52% of comparable companies, indicating a low value concerning Primo Water's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Primo Water with a rank of 34. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 66% of comparable companies, indicating a low value concerning Primo Water's profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Primo Water's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Primo Water may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 82 |
|
69 |
|
55 |
|
48 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 9 |
|
38 |
|
47 |
|
34 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 65 |
|
67 |
|
65 |
|
57 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 68 |
|
53 |
|
54 |
|
55 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 67 |
|
57 |
|
62 |
|
45 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 89 (better than 89% compared with alternatives) for 2024, Primo Water shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Primo Water. Sales Growth has a rank of 72 which means that currently, professionals expect the company to grow more than 72% of its competitors. Both Profit Growth, with a rank of 77, and Stock Returns, with a rank of 87, are also above average. But Capital Growth only has a rank of 26, which means that, currently, professionals expect the company to grow its invested capital less than 74% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 89, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 11 |
|
20 |
|
6 |
|
72 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 40 |
|
73 |
|
47 |
|
77 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
24 |
|
27 |
|
26 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 30 |
|
45 |
|
61 |
|
87 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 11 |
|
23 |
|
25 |
|
89 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 52 (better than 52% compared with alternatives), the company Primo Water has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Primo Water is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Primo Water and the other two below average. Refinancing is at 71, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 71% of its competitors. But Leverage is high with a rank of 38, meaning the company has an above-average debt-to-equity ratio. It has more debt than 62% of its competitors. Liquidity is also on the riskier side with a rank of 29, meaning the company generates less profit to service its debt than 71% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 52 (better than 52% compared with alternatives), Primo Water has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Primo Water are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Primo Water and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 10 |
|
22 |
|
26 |
|
38 |
|
| REFINANCING | ||||||||
| REFINANCING | 16 |
|
7 |
|
13 |
|
71 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 22 |
|
17 |
|
18 |
|
29 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 1 |
|
1 |
|
4 |
|
52 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
79 |
|
79 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
14 |
|
98 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
86 |
|
85 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
62 |
|
90 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Primo Water from May 2, 2024.
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