$Primo Water (PRMW.US)$A US company listed in 2002, mainly e...

In the past 5 years, revenue has grown for 4 years except in 2018, with little overall change. Operating profit has grown for 4 years except in 2018, with an average growth rate of 10.9%. Net income reached 0.384 billion at one point in 2018, but then sharply declined to a loss range in the following 3 years. In 2020, it suffered a significant loss of 0.13 billion due to impairment of capital assets. It only returned to profitability in 2022, reaching 0.03 billion.

In 2022, interest expense accounted for 56% of operating profit, indicating a heavy interest burden. The gross margin has fluctuated around 58% for the past 5 years, and the return on net assets in 2022 is only 2.3%.

In the first 3 quarters of 2023, revenue grew by 4.7%, operating profit grew by 30%, and net income reached 0.06 billion.

Currently, the PE ratio is 82.6, the TTM PE ratio is 20.4, and if the net income reaches 0.09 billion for the whole year, the PE ratio will decrease to 26.3. Considering the recent rapid growth of profits not driven by revenue, the valuation is not very attractive.