Primo Brands Corporation Class A Common Stock (PRMB)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and sell at sensible prices. Primo Brands is a consumer-defensive beverage company with recognizable water brands, but the numbers are mixed. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.8B and net income was $69.2M, or $0.19 diluted EPS. That is a sharp improvement from fiscal Q2 2025, the quarter ended 2025-06-30, when net income was $27.6M and EPS was $0.07. For FY2025, the year ended 2025-12-31, net income was $60.1M after FY2024, the year ended 2024-12-31, net loss of $16.4M, which explains FairStock's TURNAROUND label because it returned to profit after a loss within the last three years. Still, FY2023, the year ended 2023-12-31, net income was $92.8M, so the company has not yet surpassed earlier earning power despite FY2025 revenue of $6.7B. Returns are weak: FairStock shows ROE of 3.59% and ROCE of 4.16%. Leverage is high, with D/E of 1.91, and the Altman Z-Score of 0.50 signals financial distress. The Piotroski F-Score of 9/9 is a positive counterpoint, and trailing free cash flow is $299.9M, a 4.4% FCF yield. At the 2026-10-13 close of $18.90, FairStock's P/E is 63 and P/B is 2.30. Its Graham Number is $7.45, leaving a -153.69% margin of safety, so the price looks expensive relative to conservative value. The 2.34% dividend and 0.71 beta add defensiveness, and PEG of 0.42 suggests growth could make the multiple less demanding if it persists. I would want proof that margins and returns improve while debt falls. Until then, this is a speculative turnaround, not a classic bargain.

In plain English: Primo Brands sells bottled water and water filtration products in North America under brands such as Poland Spring and Pure Life. The business has returned to profit and recent quarterly earnings improved, but profit margins are thin, debt is high, and the stock price looks expensive compared with the company's current earnings and accounting value. Cash flow and a modest dividend provide some support, but the numbers do not yet show a strong, highly profitable business.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer