Primo Story

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PRMW -- USA Stock  

USD 16.51  0.12  0.73%

It looks like Monster Beverage will be up for a correction faster as its share price went up 0.09% today to Primo Water's 1.79%As many rational traders are trying to avoid consumer defensive space, it makes sense to focus on Primo Water Corp a little further and understand how it stands against Monster Beverage and other similar entities. We are going to recap some of the competitive aspects of both Primo and Monster.
Published over a month ago
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Is Primo riskier than Monster Beverage Cp (NASDAQ:MNST)?
By analyzing existing basic indicators between Primo Water and Monster, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Monster with a short position in Primo Water. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
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 3861.24 percent. This indicates that the company is making $38.61 for each dollar of assets. An increasing asset utilization means that Primo Water Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Primo or Uni-President is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Primo Water dividends

A dividend is the distribution of a portion of Primo Water earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Primo Water dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Primo one year expected dividend income is about $0.06 per share.
Preferred Dividends Income Statement Impact is likely to drop to about 8.3 M in 2021. Payment of Dividends and Other Cash Distributions is likely to drop to about (5.4 M) in 2021.
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact8.8 M8.3 M
Payment of Dividends and Other Cash Distributions-5 M-5.4 M
Investing in stocks that pay dividends, such as stock of Primo Water Corp, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Primo Water must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Primo Water. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

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.

Correlation Between Primo and Uni-President China

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Primo Water together with similar or unrelated positions with a negative correlation. For example, you can also add Uni-President China to your portfolio. If Uni-President China is not perfectly correlated to Primo Water it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Primo Water for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between PRMW and UPCHY for more information.

Breaking it down

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Primo Water revenue. Based on the latest financial disclosure, Primo Water Corp reported 2.49 B of revenue. This is 83.24% lower than that of the Consumer Defensive sector and significantly higher than that of the Beverages?Non-Alcoholic industry. The revenue for all United States stocks is 73.61% higher than that of Primo Water. As for Monster Beverage we see revenue of 4.42 B, which is much higher than that of the Beverages?Non-Alcoholic

Primo2.49 Billion
Sector0.0
Monster4.42 Billion
2.5 B
Primo
Sector
4.4 B
Monster

How will Primo sophisticated investors react to the next fall?

Latest expected short fall indicator falls down to -1.28. Possible price increase? Primo Water Corp currently demonstrates below-average downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of -0.03. However, we advise investors to further question Primo Water Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Primo Water's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Primo Water's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Bottom Line

While few other entities in the beverages?non-alcoholic industry are either recovering or due for a correction, Primo may not be as strong as the others in terms of longer-term growth potentials. To sum up, as of the 25th of February 2021, our overall 30 days Buy-Hold-Sell recommendation on the venture is Buy. We believe Primo Water is currently undervalued with very low odds of distress for the next two years.

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 Ellen Johnson 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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