PRMW (Primo Water Corp) vs S&P TSX Composite Index (Canada) Comparison

PRMW

S&P TSX Composite Index (Canada)

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PRMW

S&P TSX Composite Index (Canada)

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PRMW

S&P TSX Composite Index (Canada)

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P TSX Composite Index (Canada)

PRMW

PEP

FMX

MNST

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Primo Water Corp
Glance View

Economic Moat

None

Market Cap

14.2B CAD

Industry

Beverages

Primo Water Corporation embarked on its journey to transform the water purification and distribution industry with a model that marries the timeless necessity of pure water with modern business acumen. Originating as a small operation, it has grown into a comprehensive water solutions company that stands at the crossroads of tradition and innovation. Primo Water's business is rooted in a direct-to-consumer model, primarily offering five-gallon purified water, spring water, and self-service refill water stations strategically placed in convenient retail locations. It capitalizes not only on consumers' move towards sustainable solutions but also on the uptick in personal and home health trends. By being customer-centric, it has managed to tap into a large customer base that prefers bulk water solutions for both cost efficiencies and environmental consciousness. Central to Primo Water's economic engine is its multi-pronged revenue stream. The company earns revenue through water exchange and refill products, dispenser sales, and delivery services. Their exchange business is particularly adept at creating a circular economy model where consumers return and refill water jugs, fostering regular customer engagement and reducing plastic waste. Demand for dispensers fuels initial consumer engagement, effectively creating a recurring revenue stream from subsequent water purchases and exchanges. Additionally, Primo’s water delivery service offers the convenience of doorstep delivery, further embedding itself into the lives of consumers who increasingly opt for the comfort of home delivery. The seamless integration of its various streams ensures that Primo Water is not just selling a product but nurturing a sustainable and convenient lifestyle choice.

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PRMW Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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UK	Coca-Cola Europacific Partners PLC NASDAQ:CCEP	Add
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US	Coca-Cola Co NYSE:KO	Select
US	PepsiCo Inc NASDAQ:PEP	Select
MX	Fomento Economico Mexicano SAB de CV NYSE:FMX	Select
US	Monster Beverage Corp NASDAQ:MNST	Select
CN	Nongfu Spring Co Ltd HKEX:9633	Select
US	Keurig Dr Pepper Inc NASDAQ:KDP	Select
UK	Coca-Cola Europacific Partners PLC NASDAQ:CCEP	Select
IN	Varun Beverages Ltd NSE:VBL	Select
MX	Coca-Cola Femsa SAB de CV NYSE:KOF	Select
MX	Arca Continental SAB de CV BMV:AC	Select

US	Coca-Cola Co NYSE:KO	Add
US	PepsiCo Inc NASDAQ:PEP	Add
MX	Fomento Economico Mexicano SAB de CV NYSE:FMX	Add
US	Monster Beverage Corp NASDAQ:MNST	Add
CN	Nongfu Spring Co Ltd HKEX:9633	Add
US	Keurig Dr Pepper Inc NASDAQ:KDP	Add
UK	Coca-Cola Europacific Partners PLC NASDAQ:CCEP	Add
IN	Varun Beverages Ltd NSE:VBL	Add
MX	Coca-Cola Femsa SAB de CV NYSE:KOF	Add
MX	Arca Continental SAB de CV BMV:AC	Add

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ID		Amman Mineral Internasional Tbk PT IDX:AMMN	Add
CH	G	Galderma Group AG SIX:GALD	Add
US		Halliburton Co NYSE:HAL	Add
LU		Tenaris SA MIL:TEN	Add

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PRMW

vs

S&P TSX Composite Index (Canada)

Stocks Performance
PRMW vs S&P TSX Composite Index (Canada)

Performance Gap
PRMW vs S&P TSX Composite Index (Canada)

Performance By Year
PRMW vs S&P TSX Composite Index (Canada)

Competitors Performance
Primo Water Corp vs Peers

Primo Water Corp
Glance View

Company

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PRMW vs S&P TSX Composite Index (Canada)

Stocks Performance PRMW vs S&P TSX Composite Index (Canada)

Performance Gap PRMW vs S&P TSX Composite Index (Canada)

Performance By Year PRMW vs S&P TSX Composite Index (Canada)

Competitors Performance Primo Water Corp vs Peers

Primo Water Corp Glance View

Company

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Stocks

PRMW

vs

S&P TSX Composite Index (Canada)

Stocks Performance
PRMW vs S&P TSX Composite Index (Canada)

Performance Gap
PRMW vs S&P TSX Composite Index (Canada)

Performance By Year
PRMW vs S&P TSX Composite Index (Canada)

Competitors Performance
Primo Water Corp vs Peers

Primo Water Corp
Glance View