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GuruFocus has detected 4 Warning Signs with Primo Water Corp $PRMW.
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Primo Water Corp (NAS:PRMW)
Price-to-Free-Cash-Flow
52.92 (As of Today)

As of today, Primo Water Corp's share price is $11.59. Primo Water Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was $0.22. Hence, Primo Water Corp's Price-to-Free-Cash-Flow Ratio for today is 52.92.

PRMW' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 5.21   Max: 711.43
Current: 52.92

5.21
711.43

During the past 9 years, Primo Water Corp's highest Price-to-Free-Cash-Flow Ratio was 711.43. The lowest was 5.21. And the median was 34.44.

PRMW's Price-to-Free-Cash-Flow is ranked lower than
88% of the 51 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 23.81 vs. PRMW: 52.92 )

Primo Water Corp's Free Cash Flow per Share for the three months ended in Dec. 2016 was $0.09. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was $0.22.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Primo Water Corp was -25.10% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 44.70% per year.

During the past 9 years, Primo Water Corp's highest 3-Year average Free Cash Flow per Share Growth Rate was 83.50% per year. The lowest was 0.00% per year. And the median was 44.70% per year.


Definition

Primo Water Corp's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=11.59/0.219
=52.92

Primo Water Corp's Share Price of today is $11.59.
Primo Water Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was -0.008 (Mar. 2016 ) + 0.085 (Jun. 2016 ) + 0.05 (Sep. 2016 ) + 0.092 (Dec. 2016 ) = $0.22.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Primo Water Corp Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
pfcf 0.000.000.000.000.0024.7934.6133.4126.0656.07

Primo Water Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
pfcf 0.0033.41227.3922.0819.5626.0635.6572.0161.2656.07
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