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Primo Water

DB:P4W
Snowflake Description

Reasonable growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
P4W
DB
$476M
Market Cap
  1. Home
  2. DE
  3. Food, Beverage & Tobacco
Company description

Primo Water Corporation, together with its subsidiaries, provides multi-gallon purified bottled water, self-service refill water, and water dispensers in the United States and Canada. The last earnings update was 67 days ago. More info.


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P4W Share Price and Events
7 Day Returns
0%
DB:P4W
-0.5%
DE Beverage
2.8%
DE Market
1 Year Returns
-19.3%
DB:P4W
5.6%
DE Beverage
3%
DE Market
P4W Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Primo Water (P4W) 0% -5.8% -9.2% -19.3% -11.6% 261.3%
DE Beverage -0.5% 2.4% -0.7% 5.6% 30% 68%
DE Market 2.8% 0.2% 1.3% 3% 8% 23.6%
1 Year Return vs Industry and Market
  • P4W underperformed the Beverage industry which returned 5.6% over the past year.
  • P4W underperformed the Market in Germany which returned 3% over the past year.
Price Volatility
P4W
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Primo Water undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Primo Water to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Primo Water.

DB:P4W Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:P4W
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.51
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.508 (1 + (1- 21%) (42.68%))
0.785
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:P4W using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Primo Water is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:P4W DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 5%)
2020 31.64 Analyst x3 30.14
2021 41.33 Analyst x2 37.49
2022 41.59 Analyst x1 35.93
2023 47.84 Analyst x1 39.37
2024 51.91 Est @ 8.5% 40.68
2025 55.03 Est @ 6.02% 41.07
2026 57.39 Est @ 4.28% 40.79
2027 59.14 Est @ 3.06% 40.04
2028 60.45 Est @ 2.21% 38.98
2029 61.43 Est @ 1.62% 37.73
Present value of next 10 years cash flows $382.00
DB:P4W DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $61.43 × (1 + 0.23%) ÷ (5% – 0.23%)
$1,291.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,291.33 ÷ (1 + 5%)10
$793.06
DB:P4W Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $382.00 + $793.06
$1,175.06
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,175.06 / 38.81
$30.28
DB:P4W Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:P4W represents 0.88907x of NasdaqGM:PRMW
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88907x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 30.28 x 0.88907
€26.92
Value per share (EUR) From above. €26.92
Current discount Discount to share price of €10.90
= -1 x (€10.90 - €26.92) / €26.92
59.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Primo Water is available for.
Intrinsic value
>50%
Share price is €10.9 vs Future cash flow value of €26.92
Current Discount Checks
For Primo Water to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Primo Water's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Primo Water's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Primo Water's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Primo Water's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:P4W PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $-1.41
NasdaqGM:PRMW Share Price ** NasdaqGM (2019-10-11) in USD $12.26
Germany Beverage Industry PE Ratio Median Figure of 7 Publicly-Listed Beverage Companies 27.57x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Primo Water.

DB:P4W PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:PRMW Share Price ÷ EPS (both in USD)

= 12.26 ÷ -1.41

-8.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Primo Water is loss making, we can't compare its value to the DE Beverage industry average.
  • Primo Water is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Primo Water's expected growth come at a high price?
Raw Data
DB:P4W PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -8.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
34.6%per year
Europe Beverage Industry PEG Ratio Median Figure of 31 Publicly-Listed Beverage Companies 2.84x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Primo Water, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Primo Water's assets?
Raw Data
DB:P4W PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $2.39
NasdaqGM:PRMW Share Price * NasdaqGM (2019-10-11) in USD $12.26
Germany Beverage Industry PB Ratio Median Figure of 8 Publicly-Listed Beverage Companies 1.56x
Germany Market PB Ratio Median Figure of 598 Publicly-Listed Companies 1.74x
DB:P4W PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:PRMW Share Price ÷ Book Value per Share (both in USD)

= 12.26 ÷ 2.39

5.14x

* Primary Listing of Primo Water.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Primo Water is overvalued based on assets compared to the DE Beverage industry average.
X
Value checks
We assess Primo Water's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Primo Water has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Primo Water expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
34.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Primo Water expected to grow at an attractive rate?
  • Primo Water's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Primo Water's earnings growth is expected to exceed the Germany market average.
  • Primo Water's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:P4W Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:P4W Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 34.6%
DB:P4W Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 6%
Germany Beverage Industry Earnings Growth Rate Market Cap Weighted Average -0.6%
Europe Beverage Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:P4W Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:P4W Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 395 31 1
2022-12-31 373 26 1
2021-12-31 352 68 28 2
2020-12-31 330 57 20 7
2019-12-31 312 44 10 7
2019-10-13
DB:P4W Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 302 31 -57
2019-03-31 299 27 -57
2018-12-31 302 33 -55
2018-09-30 300 30 -54
2018-06-30 300 23 10
2018-03-31 299 22 7
2017-12-31 286 18 -6
2017-09-30 258 16 -21
2017-06-30 211 14 -24
2017-03-31 171 14 -19
2016-12-31 143 16 -6
2016-09-30 134 15 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Primo Water's earnings are expected to grow significantly at over 20% yearly.
  • Primo Water's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:P4W Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Primo Water Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:P4W Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.70 0.70 0.70 1.00
2022-12-31 0.60 0.60 0.60 1.00
2021-12-31 0.68 0.88 0.48 2.00
2020-12-31 0.49 0.65 0.40 5.00
2019-12-31 0.26 0.37 0.14 6.00
2019-10-13
DB:P4W Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 -1.41
2019-03-31 -1.46
2018-12-31 -1.47
2018-09-30 -1.50
2018-06-30 0.28
2018-03-31 0.20
2017-12-31 -0.19
2017-09-30 -0.65
2017-06-30 -0.76
2017-03-31 -0.63
2016-12-31 -0.21
2016-09-30 0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Primo Water will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Primo Water's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Primo Water has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Primo Water performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Primo Water's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Primo Water does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Primo Water's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Primo Water's 1-year growth to the DE Beverage industry average as it is not currently profitable.
Earnings and Revenue History
Primo Water's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Primo Water Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:P4W Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 301.96 -56.91 35.52
2019-03-31 298.50 -57.33 36.36
2018-12-31 302.11 -54.85 35.23
2018-09-30 299.54 -53.55 34.17
2018-06-30 299.98 9.64 34.74
2018-03-31 299.00 6.71 33.36
2017-12-31 286.07 -6.36 34.70
2017-09-30 258.12 -21.08 38.42
2017-06-30 211.41 -23.56 35.39
2017-03-31 170.98 -18.80 31.95
2016-12-31 142.54 -5.90 26.43
2016-09-30 133.66 6.05 19.85
2016-06-30 132.02 4.92 19.93
2016-03-31 130.03 3.39 19.49
2015-12-31 126.95 2.15 19.13
2015-09-30 125.04 -1.62 20.61
2015-06-30 117.55 -2.70 19.72
2015-03-31 112.01 -9.63 19.79
2014-12-31 106.32 -13.06 18.97
2014-09-30 96.27 -12.31 15.79
2014-06-30 95.41 -14.15 15.51
2014-03-31 92.41 -10.11 15.03
2013-12-31 91.21 -8.84 15.03
2013-09-30 92.58 -80.08 15.64
2013-06-30 93.22 -80.97 16.61
2013-03-31 94.01 -92.48 16.99
2012-12-31 91.48 -93.25 17.71

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Primo Water has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Primo Water has efficiently used its assets last year compared to the DE Beverage industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Primo Water improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Primo Water's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Primo Water has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Primo Water's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Primo Water's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Primo Water's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Primo Water's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Primo Water's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Primo Water Company Filings, last reported 3 months ago.

DB:P4W Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 92.54 192.49 4.28
2019-03-31 90.49 195.29 4.22
2018-12-31 94.49 186.99 7.30
2018-09-30 92.00 189.28 5.63
2018-06-30 151.10 198.71 6.22
2018-03-31 66.45 278.11 5.33
2017-12-31 71.47 273.27 5.59
2017-09-30 67.81 273.94 4.25
2017-06-30 61.54 274.63 4.50
2017-03-31 63.01 275.50 6.32
2016-12-31 64.37 272.45 15.59
2016-09-30 32.81 20.30 2.30
2016-06-30 29.82 20.27 1.56
2016-03-31 27.00 21.14 1.14
2015-12-31 26.14 20.08 1.83
2015-09-30 25.52 21.32 1.57
2015-06-30 23.87 22.20 2.80
2015-03-31 22.09 24.88 0.79
2014-12-31 22.27 24.21 0.50
2014-09-30 23.22 27.72 0.71
2014-06-30 23.02 24.79 0.43
2014-03-31 28.40 22.17 1.30
2013-12-31 31.56 22.67 0.39
2013-09-30 35.30 18.38 0.31
2013-06-30 37.05 18.98 0.22
2013-03-31 39.21 19.38 0.22
2012-12-31 41.61 21.25 0.23
  • Primo Water's level of debt (208%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (107.8% vs 208% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Primo Water has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Primo Water has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -34.2% per year.
X
Financial health checks
We assess Primo Water's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Primo Water has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Primo Water's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Primo Water dividends.
If you bought €2,000 of Primo Water shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Primo Water's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Primo Water's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:P4W Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Germany Beverage Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:P4W Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31
2019-10-13

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Primo Water has not reported any payouts.
  • Unable to verify if Primo Water's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Primo Water's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Primo Water has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Primo Water's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Primo Water afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Primo Water has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Primo Water's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Matt Sheehan
COMPENSATION $1,225,728
AGE 44
TENURE AS CEO 2.4 years
CEO Bio

Mr. Matthew T. Sheehan, also known as Matt, has been the Chief Executive Officer since May 31, 2017 of Primo Water Corporation since December 2012 and as its President since June 10, 2013. Mr. Sheehan served as Chief Operating Officer of Primo Water Corporation from December 2012 to May 31, 2017. He was most recently with Coinstar, Inc. where he was instrumental in building the Redbox business, which was acquired by Coinstar in 2008. Mr. Sheehan held several roles at Redbox/Coinstar, most recently, as a Senior Venture Advisor since June 2011 to December 2011, where he advised certain ventures within the Coinstar portfolio on long-term strategy, retail and distribution execution and technology utilization. From 2008 to 2011, he built and led the first Redbox automated retail venture as Vice President, General Manager. Mr. Sheehan joined Redbox in 2005 as Director of Business Development and in 2006 became Vice President of Sales and Business Development, where he led its growth from 100 kiosks to over 20,000 kiosks across convenience, mass merchant and supermarket stores. Significant clients included Wal-Mart, Walgreens, 7-Eleven, HEB, Wegmans among others. Mr. Sheehan has been Director of Primo Water Corporation since October 31, 2016. Mr. Sheehan earned a Bachelor of Business Management and Communications degree at Bentley College in Waltham, MA and an MBA from the Smeal College of Business at Pennsylvania State University.

CEO Compensation
  • Matt's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Matt's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Primo Water management team in years:

2.4
Average Tenure
43
Average Age
  • The tenure for the Primo Water management team is about average.
Management Team

Billy Prim

TITLE
Founder & Executive Chairman
COMPENSATION
$1M
AGE
63
TENURE
15.8 yrs

Matt Sheehan

TITLE
President
COMPENSATION
$1M
AGE
44
TENURE
2.4 yrs

David Mills

TITLE
CFO, Secretary & Assistant Treasurer
COMPENSATION
$694K
AGE
42
TENURE
1.8 yrs

David Hass

TITLE
Chief Strategy Officer
COMPENSATION
$581K
AGE
40
TENURE
2.4 yrs
Board of Directors Tenure

Average tenure and age of the Primo Water board of directors in years:

8.4
Average Tenure
61
Average Age
  • The tenure for the Primo Water board of directors is about average.
Board of Directors

Billy Prim

TITLE
Founder & Executive Chairman
COMPENSATION
$1M
AGE
63
TENURE
15.8 yrs

Matt Sheehan

TITLE
President
COMPENSATION
$1M
AGE
44
TENURE
3 yrs

Richard Brenner

TITLE
Independent Director
COMPENSATION
$40K
AGE
56
TENURE
14.8 yrs

David Warnock

TITLE
Independent Director
COMPENSATION
$52K
AGE
61
TENURE
14.8 yrs

Susan Cates

TITLE
Lead Independent Director
COMPENSATION
$47K
AGE
48
TENURE
0.8 yrs

Malcolm McQuilkin

TITLE
Independent Director
COMPENSATION
$50K
AGE
72
TENURE
14.8 yrs

Jack Kilgore

TITLE
Independent Director
COMPENSATION
$54K
AGE
70
TENURE
8.4 yrs

Charlie Norris

TITLE
Independent Director
COMPENSATION
$42K
AGE
73
TENURE
2.8 yrs

Emma Battle

TITLE
Independent Director
AGE
58
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Primo Water individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
22. Aug 19 Buy Susan Cates Individual 21. Aug 19 21. Aug 19 5,000 €11.02 €55,108
09. Aug 19 Buy Legion Partners Asset Management, LLC Company 06. Aug 19 07. Aug 19 394,800 €9.92 €3,905,440
13. Aug 19 Buy Emma Battle Individual 12. Aug 19 12. Aug 19 409 €10.87 €4,445
08. Aug 19 Buy David Hass Individual 08. Aug 19 08. Aug 19 1,000 €9.93 €9,896
09. Aug 19 Buy Richard Brenner Individual 09. Aug 19 09. Aug 19 1,500 €10.21 €15,308
08. Aug 19 Buy David Mills Individual 08. Aug 19 08. Aug 19 1,000 €10.26 €10,257
08. Aug 19 Buy Emma Battle Individual 08. Aug 19 08. Aug 19 50 €10.35 €517
10. May 19 Buy Legion Partners Asset Management, LLC Company 08. May 19 09. May 19 389,998 €11.44 €4,446,285
23. Nov 18 Buy Legion Partners Asset Management, LLC Company 06. Nov 18 21. Nov 18 541,124 €12.52 €6,682,366
X
Management checks
We assess Primo Water's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Primo Water has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Primo Water Corporation, together with its subsidiaries, provides multi-gallon purified bottled water, self-service refill water, and water dispensers in the United States and Canada. It operates in three segments: Refill, Exchange, and Dispensers. The Refill segment sells filtered drinking water dispensed directly to consumers through self-service machines. The Exchange segment sells multi-gallon purified bottled water through point of purchase display racks and recycling centers. The Dispensers segment sells water dispensers that are designed to dispense Primo and other dispenser-compatible bottled water. As of March 5, 2019, the company offered its products and services at approximately 45,000 retail locations, as well as online. Primo Water Corporation was founded in 2004 and is headquartered in Winston-Salem, North Carolina.

Details
Name: Primo Water Corporation
P4W
Exchange: DB
Founded: 2004
$430,557,576
38,805,402
Website: http://primowater.com
Address: Primo Water Corporation
101 North Cherry Street,
Suite 501,
Winston-Salem,
North Carolina, 27101,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM PRMW Common Stock Nasdaq Global Market US USD 05. Nov 2010
DB P4W Common Stock Deutsche Boerse AG DE EUR 05. Nov 2010
Number of employees
Current staff
Staff numbers
602
Primo Water employees.
Industry
Soft Drinks
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 22:33
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/09/17
Last earnings filing: 2019/08/07
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.