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PRMB

BEARISH
$20.03 Live
Primo Brands Corporation · NYSE
Target $26.08 (+30.2%)
$14.36 52W Range $33.7

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
PRMB exhibits significant fundamental weakness, anchored by a mediocre Piotroski F-Score of 4/9 and a severe valuation disconnect, with a Graham Number of $6.23 and Intrinsic Value of $1.47 against a current price of $20.03. The company is operating with razor-thin profit margins (0.90%) and an unsustainable dividend payout ratio of 190.48%, indicating that dividends are being funded by debt or cash reserves rather than earnings. Financial health is strained by a high Debt/Equity ratio of 1.91 and a Current Ratio below 1.0, suggesting liquidity risks. Furthermore, a consistent track record of missing earnings estimates (average surprise of -65.79%) and a 0/100 technical trend signal strong downward momentum.

Key Strengths

Consistent double-digit revenue growth (11.2% YoY)
Healthy gross margins at 31.63%
Reasonable Price-to-Sales ratio of 1.09
Positive analyst consensus (Buy) suggesting potential catalysts unknown to current data
Stable market capitalization of $7.28B providing some institutional scale

Key Risks

Unsustainable dividend payout ratio (190.48%)
Extreme valuation premium (P/E of 95.38)
Poor liquidity profile (Quick Ratio 0.63, Current Ratio 0.95)
Chronic earnings misses with a -65.79% average surprise
High leverage with a Debt/Equity ratio of 1.91
AI Fair Value Estimate
Based on comprehensive analysis
$6.23
-68.9% below current price

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