Perimeter Solutions, Sa (PRM)
NYSE:PRM
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Perimeter Solutions
(NYSE:PRM)
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Rating:59Neutral
Price Target:
$33.00
▲(18.71% Upside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak TTM profitability and higher balance-sheet leverage despite positive cash flow. Offsetting this, technicals are strong with clear upward price momentum, and the latest earnings call pointed to accelerating growth, contract wins, and solid liquidity, while acknowledging operational disruption and debt/interest obligations.
Positive Factors
Contract wins & revenue momentum
A multi-year DLA contract with meaningful upside provides durable, multi-year revenue visibility and backlog optionality. The staged ramp (incremental ~$50M in 2027 and further scaling into 2028) reduces single-season volatility and supports steadier planning and capacity investments across fiscal years.
Negative Factors
Elevated leverage
Leverage materially increased following acquisitions, raising fixed interest commitments and limiting balance-sheet flexibility. Higher debt amplifies execution risk if margins or cash conversion slip, constrains optionality for opportunistic investments, and increases sensitivity to interest rate or working-capital stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Contract wins & revenue momentum
A multi-year DLA contract with meaningful upside provides durable, multi-year revenue visibility and backlog optionality. The staged ramp (incremental ~$50M in 2027 and further scaling into 2028) reduces single-season volatility and supports steadier planning and capacity investments across fiscal years.
Read all positive factors
Perimeter Solutions (PRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.46B
Dividend YieldN/A
Average Volume (3M)1.32M
Price to Earnings (P/E)12.9
Beta (1Y)1.23
Revenue Growth22.99%
EPS Growth-245.44%
CountryUS
Employees319
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-1.31
Shares Outstanding163,127,060
10 Day Avg. Volume1,841,203
30 Day Avg. Volume1,318,318
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 Cap1.23
Enterprise Value/Revenue9.55
Enterprise Value/Gross Profit17.96
Enterprise Value/Ebitda-49.53
Forecast
1Y Price Target
$37.00Price Target Upside33.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.57
Revenue Forecast (FY)$852.21M
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 r...
How the Company Makes Money
Perimeter Solutions makes money primarily by manufacturing and selling fire-suppression chemicals and related fire-protection products, with revenue largely tied to customer demand for these consumables. A core revenue stream is sales of wildland ...
Perimeter Solutions Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 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 | 705.90M | 652.86M | 560.97M | 322.11M | 360.50M | 362.34M |
| Gross Profit | 375.19M | 375.15M | 317.09M | 128.29M | 128.65M | 172.62M |
| EBITDA | -136.06M | -123.08M | 61.95M | 200.04M | 195.86M | -529.53M |
| Net Income | -190.12M | -206.37M | -5.91M | 67.49M | 91.76M | -661.52M |
Balance Sheet | ||||||
| Total Assets | 3.16B | 2.65B | 2.42B | 2.33B | 2.46B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 91.62M | 325.93M | 198.46M | 52.80M | 126.75M | 225.55M |
| Total Debt | 1.37B | 33.55M | 805.53M | 798.26M | 684.30M | 664.13M |
| Total Liabilities | 1.96B | 1.52B | 1.26B | 1.18B | 1.32B | 1.50B |
| Stockholders Equity | 1.20B | 1.13B | 1.16B | 1.15B | 1.14B | 1.08B |
Cash Flow | ||||||
| Free Cash Flow | 86.03M | 208.56M | 172.86M | -9.24M | -48.78M | 62.60M |
| Operating Cash Flow | 132.08M | 238.15M | 188.39M | 193.00K | -40.17M | 72.35M |
| Investing Cash Flow | -781.79M | -106.82M | -42.94M | -14.89M | -10.25M | -1.23B |
| Financing Cash Flow | 543.47M | -8.97M | 8.35M | -64.45M | -48.81M | -761.43M |
Perimeter Solutions Technical Analysis
Positive
27.80
Price Trends
27.22
Positive
26.99
Positive
25.14
Positive
Market Momentum
1.71
Negative
65.62
Neutral
81.36
Negative
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 27.8 is below the 20-day moving average (MA) of 31.51, above the 50-day MA of 27.22, and above the 200-day MA of 25.14, indicating a bullish trend. The MACD of 1.71 indicates Negative momentum. The RSI at 65.62 is Neutral, neither overbought nor oversold. The STOCH value of 81.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRM.
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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $2.44B | 27.35 | 0.31% | 1.37% | 6.25% | -94.37% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $5.46B | 12.88 | -16.43% | ― | 22.99% | -245.44% | |
59 Neutral | $3.10B | 14.94 | 6.64% | 3.48% | 1.33% | 57.45% | |
56 Neutral | $3.22B | 42.73 | 8.09% | 1.54% | -2.57% | 43.21% | |
54 Neutral | $3.35B | -28.55 | -164.40% | 4.37% | 0.34% | -1414.08% | |
53 Neutral | $3.00B | -10.19 | -6.73% | 3.91% | 2.60% | -316.21% |
* Basic Materials Sector Average
PRM
Perimeter Solutions
33.50
21.80
186.32%
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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.