Primo Water Corp
PRMW: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$27.00 | Bpcgx | Jmklsgbsy |
Primo Water Continues To Execute Well, but Core Product Leaves Little Room for Differentiation
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.