Primo Water Corp
PRMW: XTSE (CAN)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| CAD 98.20 | Bngt | Rsrffqnwz |
Primo's Merger With BlueTriton Targets Cost Synergy, but Moat Is Elusive in Competitive Water Market
Business Strategy and Outlook
As a pure-play water provider, Primo Water has built a solid product portfolio and manufacturing and distribution footprint to tap rising demand for better-quality drinking water in North America. However, we remain skeptical that the firm benefits from any durable competitive edge based on brand intangibles or cost advantages, given the lack of differentiation and intense local competition in the water category.