Primo Water Corp
TSX:PRMW
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Primo Water Corp
TSX:PRMW
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US |
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R
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Rio Tinto PLC
F:RIO1
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UK |
Intrinsic Value
The intrinsic value of Primo Water Corp (PRMW) under the Base Case is 18.96 CAD per share.
Compared with the current market price of 37.4 CAD, the stock appears
Overvalued by 49% .
The intrinsic value is calculated using the DCF method. The model assumes revenue returns to growth: about 2% a year over the next five years, after falling about 0% a year over the last five years. If revenue grew at its five-year pace of 0%, the estimate would be about CA$13.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Primo Water Does
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.
- Headquarters
- United States of America US
- Employees
- 9 230
- IPO date
- Nov 12, 1986
Primo Water has no economic moat
Customers can switch from Primo’s bottled water or delivery to other brands, store labels, home filtration, or tap water without giving up a costly system or valuable data. Many suppliers serve these markets, and Primo’s recognizable brands do not make it difficult for rivals to compete or let it reliably charge more for comparable water.
Read the full moat analysis
Revenue & Expenses Breakdown
Primo Water Corp
Earnings Waterfall
Primo Water Corp
The intrinsic value for Primo Water Corp (PRMW) under the Base Case is 18.96 CAD.
Compared with the current market price of 37.4 CAD, the stock appears Overvalued by 49% .