Primo Brands Corp

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✗ 15▾

  All 12 investors flag PRMB's debt & leverage

  LT Debt vs Net Current AssetsLT Debt $5.1B vs NCA $148.7M

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.69, IC: 1.8x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.69

  ✗Lynch< 0.33

  Cash - Long-term Debt$-4.6B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change44.34% -> 47.96%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.11

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.69

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.69

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=1.8x, D/EBITDA=4.3x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.69

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.6932; #3678/4210 (top 87.4%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation0% pass✗ 28▾

  All 13 investors flag PRMB's valuation

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio2.9x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 149.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value4.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.4%, ROC=31.3%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS149.2x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)12.8x

  ✗Dreman< 8x

  Price / Book Value per Share2.9x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=149.2x, OE Yield=3.4%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=149.2x, FCF Yield=3.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=149.2x, P/B=2.9x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share28.6x

  ✗Ackman<= 25

  Price vs. Trailing Low152% of trailing low ($15.69)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+2.41%; #2586/6340 (top 40.8%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.3531; #3456/6449 (top 53.6%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS149.2x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.7873; #2061/5247 (top 39.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+4.79%; #1620/4519 (top 35.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+17.17%; #1492/6202 (top 24.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 2✗ 11▾

  No clean pass — all 8 investors flag at least one growth criterion

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 149.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 7.2% vs Rev: 29.3%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency2/4 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth9.7%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 28.8% -> 30.3%, operating margin 8.6% -> 6.5%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Valuation models0% pass✗ 7▾

  PRMB overvalued: all 7 models price fair value below $23.88 (median $9.53)

  Graham fair value$5.45

  ✗Graham-338.2% margin vs $23.88

  Buffett fair value$9.53

  ✗Buffett-150.6% margin vs $23.88

  Greenblatt fair value$8.67

  ✗Greenblatt-175.4% margin vs $23.88

  Munger fair value$12.38

  ✗Munger-92.9% margin vs $23.88

  Pabrai fair value$16.28

  ✗Pabrai-46.7% margin vs $23.88

  Akre fair value$5.14

  ✗Akre-364.6% margin vs $23.88

  Ackman fair value$20.09

  ✗Ackman-18.9% margin vs $23.88
• Profitability6% pass✓ 8✗ 27▾

  15 of 16 flag PRMB's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)2/5 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)2/5 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)836.1%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)6.5% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$292.9M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 149.2x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE6.8%

  ✗Lynch> 15%

  EBIT / Enterprise Value4.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=4.4%, ROC=31.3%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets0.57%

  ✓PiotroskiROA > 0

  ROA Change YoY-0.15% -> 0.57% (delta: +0.71%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=6.42%, ROA=0.57%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY31.5% -> 30.3%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue4.2%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity6.8%

  ✗Dreman> 12%

  Margin of SafetyP/E=149.2x, P/B=2.9x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity1146.2% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency2/4 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue8.6%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity6.8%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend8.6% (2023) -> 6.5% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 28.8% -> 30.3%, operating margin 8.6% -> 6.5%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+2.41%; #2586/6340 (top 40.8%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+18.45%; #2157/3702 (top 58.3%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+6.82%; #2244/5226 (top 42.9%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0080; #689/5884 (top 11.7%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts6% pass✓ 1✗ 15▾

  Split decision: 14 FAIL · 1 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (3/9)✗LynchFAIL (1/7)✗GreenblattRank #1097•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (1/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)✗TempletonFAIL (1/8)✓SleepPASS (3/6)✗AsnessFAIL (Rank #1070/2370 (Top 45.1%))✗NeffFAIL (3/6)✗SchlossFAIL (0/7)✗OshaughnessyFAIL (Rank #149/963 (Top 15.5%))
• Efficiency13% pass✓ 2✗ 9▾

  7 of 8 flag PRMB's efficiency — Graham, Buffett, Piotroski +4 more

  Current Ratio1.11

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)5.8%

  ✗Buffett> 10%

  ROIC - WACC-4.2%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)31.3%

  ✓Greenblatt> 25%

  Current Ratio Change YoY1.08 -> 0.95

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.46x -> 0.63x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.11

  ✗Dreman> 1.5

  Return on Invested Capital5.6%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=9.2%; FY2024: ROIC=3.4%; FY2025: ROIC=4.2%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC1.0% (RR=19% x ROIC=5.6%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/3 years above 12% (latest 4.2%)

  ✗SleepROIC > 12% in a majority of years
• Cash Flow50% pass✓ 7✗ 5▾

  5 of 10 pass — Lynch, Dreman, Pabrai +2 more object

  Free Cash Flow Proxy$292.9M

  ✓BuffettPositive and growing

  FCF Positive and Growing$302.9M

  ✗LynchPositive and growing

  Operating Cash Flow$680.3M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=6.42%, ROA=0.57%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)12.8x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=149.2x, FCF Yield=3.5%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive3/4 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap4.8%

  ✓Ackman>= 4%

  Price / FCF per Share28.6x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency4/4 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$413.9M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+4.79%; #1620/4519 (top 35.8%)

  ✗OshaughnessyTop 10% of eligible cross-section