Primo Story

<div class='circular--portrait' style='background:#754DEB;color: #F0FFF0;font-size:4em;'>PW</div>
PRMW -- USA Stock  

USD 14.19  0.35  2.53%

Primo Water Cash Flow Per Share is fairly stable at the moment as compared to the past year. Primo Water reported Cash Flow Per Share of 0.76 in 2019. Revenue to Assets is likely to climb to 0.86 in 2020, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop (24.5 M) in 2020. The fundamental intend behind this short review is to break down our forecasting of Primo for sophisticated investors. We will try to forecast Primo Water outlook for September.
Published over a month ago
View all stories for Primo Water | View All Stories
Are Primo (NYSE:PRMW) sophisticated investors starting to hold back?
Primo Water has a beta of 0.0721. Let's try to break down what Primo's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Primo Water will likely underperform. The beta indicator helps investors understand whether Primo Water moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Primo deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Primo Water. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Primo Water


How important is Primo Water's Liquidity

Primo Water financial leverage refers to using borrowed capital as a funding source to finance Primo Water ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Primo Water financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Primo Water's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Primo Water, but it might be worth checking our own buy vs. sell analysis

A Deeper look at Primo

Primo Water currently demonstrates below-verage downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.53. However, we do advice investors to further question Primo Water expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Returns Breakdown

Return on Investment(13.06)
Return on Assets(15.14)
Return on Equity(61.05)
Return Capital0.0612
Return on Sales0.0292

Over 3 percent climb for Primo Water. What does it mean for sophisticated investors?

Primo Water latest total risk alpha rises over 0.17. Primo Water currently demonstrates below-verage downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.53. However, we do advice investors to further question Primo Water expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Bottom Line

While few other entities within the beverages?non-alcoholic industry are still a little expensive, even after the recent corrections, Primo Water may offer a potential longer-term growth to sophisticated investors. While some sophisticated investors may not share our view, we believe it may be a good time to increase your existing holdings in Primo as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Primo Water.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Primo Water. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com