PRMW Primo stock Story

PRMW -  USA Stock  

USD 16.01  0.65  3.90%

Primo Water is scheduled to announce its earnings today. The next earnings report is expected on the 18th of February 2021. Primo Water symbol was changed from COT on 3rd of March 2020. 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. As many millenniums are trying to avoid consumer defensive space, it makes sense to focus on Primo Water a little further and try to understand its current market patterns.
Published over six months ago
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Should I sell my Primo (NYSE:PRMW) holdings?
The company currently holds 1.7 B in liabilities with Debt to Equity (D/E) ratio of 1.26, which is about average as compared to similar companies. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Primo Water has an asset utilization ratio of 3783.71 percent. This indicates that the company is making $37.84 for each dollar of assets. An increasing asset utilization means that Primo Water is more efficient with each dollar of assets it utilizes for everyday operations.
Primo Water financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Primo Water, including all of Primo Water's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Primo Water assets, the company is considered highly leveraged. Understanding the composition and structure of overall Primo Water debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding PRMW Primo Total Liabilities

Primo Water Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Primo Water Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Primo Water balance sheet include debt obligations and money owed to different Primo Water vendors, workers, and loan providers. Below is the chart of PRMW Primo short long-term liabilities accounts currently reported on its balance sheet.
You can use Primo Water Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Primo Water's Liquidity

Primo Water financial leverage refers to using borrowed capital as a funding source to finance Primo Water Corp 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.

Breaking it down

Primo Water reported the previous year's revenue of 2.44 B. Net Loss for the year was (139.2 M) with profit before overhead, payroll, taxes, and interest of 1.23 B.

Asset Breakdown

68.7 M
Assets Non Current
31.4 M
Current Assets
Total Assets231.3 Million
Current Assets31.37 Million
Assets Non Current68.74 Million
Goodwill9.53 Million

Are Primo Water technical ratios showing a collapse?

The kurtosis is down to 0.12 as of today. Primo Water exhibits very low volatility with skewness of -0.08 and kurtosis of 0.12. However, we advise investors to further study Primo Water technical indicators to make sure all market info is available and is reliable.

Our Conclusion on Primo Water

While other companies in the beverages—non-alcoholic industry are either recovering or due for a correction, Primo Water may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Primo as the current risk-reward utility is not appealing enough. 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 Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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