Primo Water Corp
PRMW: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$96.00 | Hls | Ghzzfbvbf |
Despite No-Moat Primo's Sound Strategy and Execution, It Lacks a Durable Competitive Edge
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 (those that can be stored at room temperature) in 2010 to an all-things-water business in 2020. The current entity combines the heft of Cott’s former water subsidiaries with the legacy Primo business. Now that it is a pure-play water provider, we expect a more robust top-line trajectory and a structurally improved margin profile.