Perimeter Solutions (PRM) AI Stock Analysis

• Market Cap: $1.79B
• Dividend Yield: N/A
• Average Volume (3M): 953.40K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.16
• Revenue Growth: 70.16%
• EPS Growth: N/A
• Country: US
• Employees: 319
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals - Specialty
• EPS (TTM): 0.03
• Shares Outstanding: 147,728,760
• 10 Day Avg. Volume: 907,019
• 30 Day Avg. Volume: 953,403
• PEG Ratio: -3.03
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.00
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 4.89
• Enterprise Value/Ebitda: 5.93
• 1Y Price Target: $15.50
• Price Target Upside: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: $13.50 ▲(8.87%Upside)

Perimeter Solutions' overall score is driven by strong technical momentum and financial stability, despite operational challenges impacting valuation. The earnings call indicates confidence in strategic growth, but risks in the Specialty segment and trade policy impacts need monitoring.

Positive Factors

Acquisitions and Growth Prospects

Wasted no time executing on a 2nd bolt-on acquisition in its recently formed Printed Circuit Board product line, boosting confidence in the inorganic growth prospects for this business.

Earnings and Financial Performance

PRM's consolidated revenues and EBITDA have shown strong growth over a three-year period, highlighting effective execution of its operating model.

Negative Factors

Competitive Risks

Concerns about competition risk from a new US Retardant competitor weighed on PRM shares for an extended period.

Operational Challenges

Downtime at manufacturer provider led to Specialty Products segment sales loss, weighing on fiscal year outlook somewhat.

Perimeter Solutions Business Overview & Revenue Model

Company Description

Perimeter Solutions, SA manufactures and supplies firefighting products and lubricant additives in the United States, Germany, and internationally. It operates in two segments, Fire Safety and Oil Additives. The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services for federal, state, provincial, local/municipal, and commercial customers. The Oil Additives segment produces Phosphorus Pentasulfide which is primarily used in the preparation of lubricant additives, including a family of compounds called Zinc Dialkyldithiophosphates. The company offers its products under the brands PHOS-CHEK, FIRE-TROL, AUXQUIMIA, SOLBERG. and BIOGEMA. Perimeter Solutions, SA was founded in 1963 and is headquartered in Clayton, Missouri.

How the Company Makes Money

Perimeter Solutions generates revenue through the sale of its specialized firefighting products and services. The company’s key revenue streams include the manufacturing and distribution of fire retardants and firefighting foams, which are critical in wildfire management and industrial fire safety. Additionally, Perimeter Solutions may engage in strategic partnerships and contracts with government agencies, fire departments, and industrial clients, which ensures a steady demand for its products. The company’s focus on innovation and compliance with stringent safety regulations further bolsters its market position and revenue potential.

Perimeter Solutions Financial Statement Overview

Summary

Perimeter Solutions shows a mixed financial performance with strong revenue growth but challenges in profitability and cash flow efficiency. The company benefits from low leverage, providing a stable financial base, yet it must address operational inefficiencies and improve cash flow from operations to enhance overall financial health.

Income Statement

The income statement reveals fluctuating revenue with a significant increase in 2024, but consistent negative EBIT and net income in recent years indicate challenges in achieving profitability. The gross profit margin in 2024 was 56.54%, reflecting efficient production, but a negative net profit margin of -15.66% underscores the company's struggle with operational costs.

Balance Sheet

Perimeter Solutions maintains a strong equity position with a debt-to-equity ratio of 0.02 in 2024, indicating low leverage. However, the equity ratio stood at 47.90%, suggesting a balanced use of equity and liabilities. The return on equity has been declining, with a negative ROE in 2024 due to losses, which may concern investors.

Cash Flow

The cash flow statement shows improving free cash flow in 2024, moving from negative in previous years, indicating better cash management. The operating cash flow to net income ratio of 0.06 in 2024 suggests low efficiency in converting revenue to cash flow. The company needs to further improve cash generation from operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
560.97M	322.11M	360.50M	362.34M	339.58M
	Gross Profit
317.09M	138.85M	142.65M	113.06M	162.04M
	EBIT
-3.77M	94.45M	130.06M	-600.13M	71.48M
	EBITDA
-3.77M	173.07M	211.01M	-546.68M	134.87M
	Net Income Common Stockholders
-5.91M	67.49M	91.76M	-661.52M	24.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
198.46M	52.80M	126.75M	225.55M	22.48M
	Total Assets
2.42B	2.32B	2.46B	2.59B	1.14B
	Total Debt
21.55M	689.70M	684.30M	664.13M	687.27M
	Net Debt
-176.90M	642.42M	557.55M	438.57M	664.79M
	Total Liabilities
1.26B	1.16B	1.32B	1.50B	846.78M
	Stockholders Equity
1.16B	1.15B	1.14B	1.09B	291.42M
Cash Flow		Free Cash Flow
172.86M	-9.24M	-48.78M	62.60M	63.33M
	Operating Cash Flow
188.39M	193.00K	-40.17M	72.35M	70.83M
	Investing Cash Flow
-42.94M	-14.89M	-10.25M	-1.23B	-9.47M
	Financing Cash Flow
8.35M	-64.45M	-48.81M	-761.43M	-45.61M

Perimeter Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRM, the sentiment is Positive. The current price of 12.4 is above the 20-day moving average (MA) of 11.85, above the 50-day MA of 10.76, and above the 200-day MA of 11.81, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 65.37 is Neutral, neither overbought nor oversold. The STOCH value of 79.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRM.

Perimeter Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRM	72 Outperform	$1.79B	15.83	11.76%	―	70.16%	―
KWR	71 Outperform	$1.91B	20.46	6.78%	1.77%	-5.72%	-19.82%
SCL	69 Neutral	$1.19B	21.57	4.65%	2.81%	-0.16%	47.70%
MTX	65 Neutral	$1.82B	11.37	-1.45%	0.75%	-3.82%	-126.04%
NGVT	54 Neutral	$1.52B	―	-88.14%	―	-17.68%	-214.32%
CC	52 Neutral	$1.49B	48.25	4.66%	8.43%	-0.68%	―
Sector *	51 Neutral	$2.01B	-1.11	-21.16%	3.67%	2.69%	-30.65%

Perimeter Solutions Corporate Events

Perimeter Solutions Holds 2025 Annual Stockholders Meeting

On May 29, 2025, Perimeter Solutions, Inc. conducted its 2025 Annual Meeting of Stockholders virtually, where stockholders voted on three key proposals. The election of seven director nominees was approved, the compensation of the Company’s named executive officers received advisory approval, and the appointment of KPMG LLP as the independent registered public accounting firm for 2025 was ratified.

The most recent analyst rating on (PRM) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.