Perimeter Solutions (PRM)
NYSE:PRM
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Perimeter Solutions
(NYSE:PRM)
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Rating:55Neutral
Price Target:
$32.00
▲(15.11% Upside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by mixed financial performance—strong revenue growth, margins and improved leverage, but offset by a large GAAP loss, negative ROE, and uneven operating cash flow. The earnings call was a relative positive with improving adjusted results and clearer guidance, while technical signals are mixed and valuation is pressured by negative earnings and no dividend support.
Positive Factors
Revenue Growth Trajectory
Sustained top-line expansion (16% FY growth, strong Q4) reflects durable demand across fire-safety and specialty products, supporting scale advantages, improved pricing power and a larger recurring revenue base that can underpin multi-year margin and cash-flow improvement.
Negative Factors
Operational & Safety Failures at Sauget
Repeated downtime and safety lapses at a key P2S5 facility create persistent supply risk, higher operating costs and litigation exposure. Until ownership/operational control is resolved, this can structurally constrain volumes, customer confidence and segment profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Trajectory
Sustained top-line expansion (16% FY growth, strong Q4) reflects durable demand across fire-safety and specialty products, supporting scale advantages, improved pricing power and a larger recurring revenue base that can underpin multi-year margin and cash-flow improvement.
Read all positive factors
Perimeter Solutions (PRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.97B
Dividend YieldN/A
Average Volume (3M)1.07M
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth16.38%
EPS Growth-2550.85%
CountryUS
Employees319
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.13
Shares Outstanding163,127,060
10 Day Avg. Volume1,023,150
30 Day Avg. Volume1,065,772
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 Cap1.10
Enterprise Value/Revenue8.36
Enterprise Value/Gross Profit14.55
Enterprise Value/Ebitda-39.01
Forecast
1Y Price Target
$32.50Price Target Upside16.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.44
Revenue Forecast (FY)$826.95M
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and financial improvement: consolidated revenue (+16%) and adjusted EBITDA (+18%) growth, improved adjusted EPS (+21%), meaningful segment-level wins, and an active, disciplined M&A program highlighted by the strategic MMT acquisition. Management also emphasized improved contract mix and greater predictability of Fire Safety cash flows. Material negatives centered on operational and safety failures at the Sauget P2S5 facility (causing production disruption, litigation risk, and base-business declines), widened GAAP losses, and higher pro forma leverage and interest expense following the MMT financing. On balance, the company presented more substantive and sustainable positives (organic growth, margin expansion, diversified M&A pipeline, liquidity) than negatives, although the Sauget situation and higher leverage are important near-term risks.Positive Updates
Consolidated Revenue Growth
Consolidated revenue reached $652.9M in 2025, up 16% year-over-year; Q4 revenue was $102.8M, up 19% year-over-year.
Negative Updates
P2S5 Sauget Plant Operational and Safety Failures
Sauget (Flexsys-owned) experienced recurring unplanned downtime and safety incidents that materially reduced production volumes and negatively impacted PDI/P2S5 results. Management cites recurring safety lapses, is pursuing litigation, and warns of continued variability in the P2S5 business until operational control is resolved.
Read all updates
Q4-2025 Updates
Positive
Negative
Consolidated Revenue Growth
Consolidated revenue reached $652.9M in 2025, up 16% year-over-year; Q4 revenue was $102.8M, up 19% year-over-year.
Read all positive updates
Company Guidance
Management updated long‑term assumptions and provided numerical guidance across financing, tax, capital spending and working capital: annual interest expense is expected to be ~ $75M (Q4 interest expense was $9.7M), tax‑deductible depreciation/amortization/other items are guided to ~$60M–$75M, and annual capital expenditures are expected to be $30M–$40M (2025 capex was $26.5M; Q4 capex $7M). They expect annual working capital change to run roughly 10%–15% of revenue growth and a cash tax rate of 20% or better (Q4 cash taxes were $20.6M vs $43.1M prior year). On capital allocation and liquidity, 2025 capital deployed totaled about $149M (including $82M of product‑line M&A and a $40M Q4 IMS buy), $40.4M of share repurchases were completed early in the year, and the company deployed over $830M of capital including the January MMT acquisition ($685M cash), funded in part by $550M of new 6.25% notes due 2034 (in addition to $675M of 5.0% notes due 2029); quarter‑end cash was $325.9M with an undrawn $200M revolver. Leverage was 1.1x net debt/adjusted EBITDA on LTM adjusted EBITDA of $331.7M (pro‑forma including MMT and the $550M notes ~3.0x) versus an informal target around 4.0x, and management reiterated a minimum targeted equity return hurdle of 15% and that IMS will deploy “tens of millions” annually into high‑IRR product‑line acquisitions.Perimeter Solutions Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 652.86M | 560.97M | 322.11M | 360.50M | 362.34M |
| Gross Profit | 375.15M | 317.09M | 128.29M | 128.65M | 172.62M |
| EBITDA | -123.08M | 61.95M | 200.04M | 195.86M | -529.53M |
| Net Income | -206.37M | -5.91M | 67.49M | 91.76M | -661.52M |
Balance Sheet | |||||
| Total Assets | 2.65B | 2.42B | 2.33B | 2.46B | 2.58B |
| Cash, Cash Equivalents and Short-Term Investments | 325.93M | 198.46M | 52.80M | 126.75M | 225.55M |
| Total Debt | 33.55M | 805.53M | 798.26M | 684.30M | 664.13M |
| Total Liabilities | 1.52B | 1.26B | 1.18B | 1.32B | 1.50B |
| Stockholders Equity | 1.13B | 1.16B | 1.15B | 1.14B | 1.08B |
Cash Flow | |||||
| Free Cash Flow | 208.56M | 172.86M | -9.24M | -48.78M | 62.60M |
| Operating Cash Flow | 238.15M | 188.39M | 193.00K | -40.17M | 72.35M |
| Investing Cash Flow | -106.82M | -42.94M | -14.89M | -10.25M | -1.23B |
| Financing Cash Flow | -8.97M | 8.35M | -64.45M | -48.81M | -761.43M |
Perimeter Solutions Technical Analysis
Positive
27.80
Price Trends
24.57
Positive
26.21
Positive
23.41
Positive
Market Momentum
0.95
Negative
68.82
Neutral
93.33
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 above the 20-day moving average (MA) of 24.25, above the 50-day MA of 24.57, and above the 200-day MA of 23.41, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 68.82 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $3.32B | 34.90 | 3.48% | 3.48% | 0.61% | -51.82% | |
56 Neutral | $3.26B | 42.73 | 8.09% | 1.54% | -2.57% | 43.21% | |
56 Neutral | $2.31B | -964.31 | -0.18% | 1.37% | 2.66% | -101.63% | |
55 Neutral | $4.97B | -7.30 | -17.79% | ― | 16.38% | -2550.85% | |
51 Neutral | $3.95B | -4.59 | -113.20% | 4.37% | 0.43% | -540.18% | |
49 Neutral | $3.12B | -55.77 | -2.18% | 3.91% | 3.68% | -141.44% |
* Basic Materials Sector Average
PRM
Perimeter Solutions
30.30
20.08
196.48%
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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.