$Primo Water (PRMW.US)$The US company, which was listed in 2...

In the past 5 years, revenue has increased for 4 years, with the exception of 2018. Operating profit increased for 4 years, with an average growth rate of 10.9%. Net profit reached 384 million yuan in 2018 due to the suspension of operating profit, then fell sharply to the loss range in the next three years. Among them, loss of 130 million dollars was affected by capital asset impairment in 2020, and only reached 30 million in 2022.

Interest expenses account for 56% of operating profit in 2022, and the interest burden is very heavy. Gross margin has basically fluctuated around 58% in the past 5 years, and the return on net assets was only 2.3% in 2022.

In the first three quarters of 2023, revenue increased 4.7%, operating profit increased 30%, and net profit reached 60 million.

Currently, the price-earnings ratio is 82.6, and the price-earnings ratio is TTM 20.4. If the annual net profit reaches 90 million, the price-earnings ratio will drop to 26.3. Considering that recent rapid profit growth is not driven by revenue, the valuation is not very attractive.