Primo Water Corp
PRMW: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$99.00 | Nxfbj | Jmtzclnk |
Despite Demand Tailwinds, Primo Water's Long-Term Returns Should Be Constrained
Business Strategy and Outlook
Formerly known as Cott, Primo has cycled through multiple iterations over the past decade, going from a private-label manufacturer of ambient beverages, or those that can be stored at room temperature, in 2010 to an all-things-water business in 2020. Nevertheless, the current entity combines the heft of Cott’s former water subsidiaries with the legacy Primo business, and as a pure-play water provider, we expect a more robust top-line trajectory and a structurally improved margin profile.