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Perimeter Solutions
(NYSE:PRM)
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Rating:52Neutral
Price Target:
$31.00
▼(-8.09% Downside)
Action:Reiterated
Date:08/01/26
The score is held back primarily by weak current profitability, higher financial leverage, and a mixed near-term technical setup (below 20/50-day averages). Offsetting these, the latest earnings call indicated strong momentum in revenue and adjusted EBITDA, meaningful contract wins, and solid liquidity, which improves the near-to-intermediate outlook despite execution and integration risks.
Positive Factors
Revenue growth & margin resilience
Sustained top-line expansion driven by organic growth and acquisitions indicates expanding end-market penetration. Coupled with historically healthy gross margins (~56–57%), this revenue momentum supports longer-term operating leverage and the ability to absorb integration costs while funding growth initiatives.
Negative Factors
Elevated leverage & interest obligations
Higher leverage and new fixed‑rate debt meaningfully raise annual interest expense (management cites ~$75M). This constrains financial flexibility, raises refinancing and covenant risk if cash generation slows, and increases sensitivity to integration setbacks or sustained margin pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & margin resilience
Sustained top-line expansion driven by organic growth and acquisitions indicates expanding end-market penetration. Coupled with historically healthy gross margins (~56–57%), this revenue momentum supports longer-term operating leverage and the ability to absorb integration costs while funding growth initiatives.
Read all positive factors
Perimeter Solutions (PRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.07B
Dividend YieldN/A
Average Volume (3M)1.70M
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth24.25%
EPS Growth-515.23%
CountryUS
Employees356
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-2.20
Shares Outstanding163,127,060
10 Day Avg. Volume1,293,603
30 Day Avg. Volume1,695,137
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)3.61
Price to Sales (P/S)6.27
P/FCF Ratio19.64
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$45.00Price Target Upside33.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.67
Revenue Forecast (FY)$885.89M
Perimeter Solutions Business Overview & Revenue Model
Company Description
Perimeter Solutions, Inc. is a global manufacturer and supplier specializing in fire suppression products and chemical additives for lubricants. Its operations are organized into two main divisions: Fire Safety and Oil Additives. The Fire Safety d...
How the Company Makes Money
Perimeter Solutions primarily makes money by selling fire-safety chemical products, with revenue largely tied to demand for wildfire suppression and related preparedness. A key revenue stream is wildland firefighting chemicals (such as long-term f...
Perimeter Solutions Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: substantial consolidated revenue (+74% YoY) and adjusted EBITDA growth (+~128%), material contract wins (DLA, CAL FIRE), successful early integration of acquisitions (MMT), and improved earnings predictability and liquidity. The primary negatives are a severe operational failure at the Sauget facility, input-cost/headline supply risks, and elevated debt/interest commitments related to acquisitions. On balance, the positives (growth, contracts, liquidity, margin resilience) outweigh the negatives, though execution risk on integration and remedying Sauget remain important to monitor.Positive Updates
Strong Consolidated Revenue Growth
Net sales of $125.1M in Q1, up 74% year-over-year, driven by organic growth and recent acquisitions (notably MMT).
Negative Updates
Severe Operational Disruption at Sauget (Flexsys)
Sauget, IL facility experienced the worst operational downtime in its history, materially disrupting PDI operations; Perimeter attributes failures to One Rock Capital's management and is pursuing legal remedies—near-term impacts to revenue and profitability were noted though PDI still grew slightly YoY.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Consolidated Revenue Growth
Net sales of $125.1M in Q1, up 74% year-over-year, driven by organic growth and recent acquisitions (notably MMT).
Read all positive updates
Company Guidance
Perimeter reiterated unchanged long‑term assumptions and provided specific forward guidance: annual interest expense of ~ $75M (Q1 cash interest $24.4M, including a $6.25M one‑time bridge charge), tax‑deductible depreciation & amortization of $60–65M annually (Q1 D&A $10.4M), a cash tax rate of ~20% or better (Q1 cash taxes were a $2M net benefit), and capital expenditures of $30–40M per year (Q1 CapEx $5.8M, with full‑year spend expected toward the higher end to fund suppressants capacity and MMT productivity initiatives). They expect working capital investment of ~10–15% of revenue growth (Q1 was consistent with that), and maintained a disciplined capital structure with net debt/LTM adjusted EBITDA of ~3.2x, about $92M of cash, a fully undrawn $200M revolver, and ~163.1M basic shares outstanding. Management closed the $682M MMT acquisition (funded in part with $550M 6.25% notes due 2034 alongside existing $675M 5% notes due 2029), expects MMT to exceed initial full‑year expectations with 9 product launches in 2026 (vs. 2 in 2025), and highlighted the new 5‑year DLA foam agreement (maximum $500M contract value, ~2/3 incremental uplift ≈ $333M, with ~ $50M incremental revenue expected in 2027 and ramping to steady‑state in 2028), while Q1 results (net sales $125.1M, adjusted EBITDA $41.2M, adjusted EPS $0.06 on an adjusted net income of $9M) were said to be consistent with this framework.Perimeter Solutions Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 757.07M | 652.86M | 560.97M | 322.11M | 360.50M | 362.34M |
| Gross Profit | 414.16M | 375.15M | 317.09M | 128.29M | 128.65M | 172.62M |
| EBITDA | -329.06M | -123.08M | 59.32M | 200.04M | 205.61M | -529.53M |
| Net Income | -339.59M | -206.37M | -5.91M | 67.49M | 91.76M | -661.52M |
Balance Sheet | ||||||
| Total Assets | 3.24B | 2.65B | 2.42B | 2.33B | 2.46B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 82.78M | 325.93M | 198.46M | 52.80M | 126.75M | 225.55M |
| Total Debt | 41.74M | 824.29M | 805.53M | 798.26M | 684.30M | 664.13M |
| Total Liabilities | 2.22B | 1.52B | 1.26B | 1.18B | 1.32B | 1.50B |
| Stockholders Equity | 1.02B | 1.13B | 1.16B | 1.15B | 1.14B | 1.08B |
Cash Flow | ||||||
| Free Cash Flow | 116.87M | 208.56M | 172.86M | -9.24M | -48.78M | 62.60M |
| Operating Cash Flow | 134.93M | 238.15M | 188.39M | 193.00K | -40.17M | 72.35M |
| Investing Cash Flow | -753.80M | -106.82M | -42.94M | -14.89M | -10.25M | -1.23B |
| Financing Cash Flow | 575.64M | -8.97M | 8.35M | -64.45M | -48.81M | -761.43M |
Perimeter Solutions Risk Analysis
Perimeter Solutions disclosed 37 risk factors in its most recent earnings report. Perimeter Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Perimeter Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $2.98B | 16.22 | 9.16% | 1.71% | -0.57% | 81.10% | |
60 Neutral | $2.69B | 28.51 | 7.12% | 1.34% | 7.79% | ― | |
59 Neutral | $3.36B | 21.12 | 6.64% | 2.91% | 1.33% | 57.45% | |
52 Neutral | $6.07B | -13.91 | -16.43% | ― | 24.25% | -515.23% | |
50 Neutral | $2.57B | -6.08 | -164.40% | 2.06% | 0.34% | -1414.08% | |
48 Neutral | $2.53B | -15.05 | -6.78% | 3.45% | 0.60% | -920.33% |
* Basic Materials Sector Average
PRM
Perimeter Solutions
30.61
14.97
95.72%
FUL
H.B. Fuller Company
55.30
0.58
1.07%
OLN
Olin
18.51
0.88
4.97%
AVNT
Avient
36.32
3.58
10.93%
KWR
Quaker Chemical
160.52
44.28
38.09%
CC
Chemours Company
16.61
5.36
47.59%
Perimeter Solutions Corporate Events
Executive/Board ChangesShareholder Meetings
Perimeter Solutions Stockholders Back Governance at 2026 Meeting
Positive
May 28, 2026
Perimeter Solutions, Inc. operates in the industrial and specialty chemicals sector, with a focus on products and services used in fire safety and related applications. The company serves customers that depend on reliable performance and regulator...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.