Perimeter Solutions (PRM) AI Stock Analysis

• Market Cap: $3.28B
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 52.7
• Beta (1Y): 1.29
• Revenue Growth: 56.87%
• EPS Growth: N/A
• Country: US
• Employees: 319
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 0.39
• Shares Outstanding: 146,452,130
• 10 Day Avg. Volume: 1,752,734
• 30 Day Avg. Volume: 1,308,655
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 4.48
• Enterprise Value/Gross Profit: 8.07
• Enterprise Value/Ebitda: 18.47
• 1Y Price Target: $22.50
• Price Target Upside: 0.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: $22.50 ▲(0.58% Upside)

Perimeter Solutions' overall stock score is driven by its stable financial performance and strong earnings call results. However, technical indicators suggest the stock is overbought, and the high P/E ratio indicates overvaluation. Operational challenges and litigation risks further temper the outlook.

Positive Factors

Earnings Growth

PRM boasts a robust organic earnings growth track record, with growth unrelated to macro driver tailwinds.

Market Leadership

PRM is a leader in fire retardants used to fight wildfires, which should catalyze growth in PRM’s volumes and provide more firepower to PRM’s earnings algorithm.

Valuation

PRM trades at a substantial discount on P/E vs. history & comps, with re-rating potential and should trade at a FCF yield premium vs. comps.

Negative Factors

Competition Risk

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

Sales Loss

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 (PRM) is a global leader in providing high-quality firefighting products and services, focusing on fire safety and chemical solutions. The company operates primarily in the fire safety sector, offering essential products such as fire retardants and firefighting foams, which are used by government, municipal, and industrial customers worldwide. Perimeter Solutions is dedicated to innovation and safety, ensuring its products meet the highest standards to protect lives and property.

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 stable financial position with strengths in cash generation and equity utilization. The margins indicate operational challenges, but the company maintains a balanced leverage and strong equity base. Continued focus on operational improvements could bolster profitability further.

Income Statement

The income statement shows moderate performance with some positive trends. The TTM gross profit margin is robust at 56.53% and the net profit margin is quite strong at 23.23%. However, the EBIT margin is negative (-1.17%), indicating operational challenges. The revenue growth from the previous year is modest at 2.31%, suggesting slow but stable growth.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.57, indicating moderate leverage. The return on equity (ROE) is healthy at 10.96%, showing effective utilization of equity. The equity ratio is strong at 50.56%, suggesting a stable financial foundation.

Cash Flow

The cash flow statement is robust with a healthy operating cash flow to net income ratio of 1.54, indicating good cash conversion. Free cash flow has grown by 10.23% in the TTM period, demonstrating positive cash generation. The free cash flow to net income ratio is favorable at 1.43, highlighting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	609.32M	560.97M	322.11M	360.50M	362.34M	339.58M
Gross Profit	338.16M	317.09M	138.85M	142.65M	113.06M	162.04M
EBITDA	147.73M	59.32M	173.07M	211.01M	-546.68M	134.87M
Net Income	79.53M	-5.91M	67.49M	91.76M	-661.52M	24.25M
Balance Sheet
Total Assets	2.49B	2.42B	2.32B	2.46B	2.59B	1.14B
Cash, Cash Equivalents and Short-Term Investments	140.66M	198.46M	52.80M	126.75M	225.55M	22.48M
Total Debt	817.99M	805.53M	689.70M	684.30M	664.13M	687.27M
Total Liabilities	1.31B	1.26B	1.16B	1.32B	1.50B	846.78M
Stockholders Equity	1.18B	1.16B	1.15B	1.14B	1.09B	291.42M
Cash Flow
Free Cash Flow	185.59M	172.86M	-9.24M	-48.78M	62.60M	63.33M
Operating Cash Flow	200.76M	188.39M	193.00K	-40.17M	72.35M	70.83M
Investing Cash Flow	-57.94M	-42.94M	-14.89M	-10.25M	-1.23B	-9.47M
Financing Cash Flow	14.74M	8.35M	-64.45M	-48.81M	-761.43M	-45.61M

Perimeter Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 22.37 is above the 20-day moving average (MA) of 20.32, above the 50-day MA of 17.79, and above the 200-day MA of 13.19, indicating a bullish trend. The MACD of 1.56 indicates Negative momentum. The RSI at 82.86 is Negative, neither overbought nor oversold. The STOCH value of 67.52 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
KWR	70 Neutral	$2.51B	21.71	-0.52%	1.34%	-3.09%	-106.46%
MTX	68 Neutral	$2.01B	1,412.11	0.13%	0.69%	-3.93%	-97.39%
SCL	67 Neutral	$1.13B	19.80	4.77%	3.07%	2.64%	66.43%
PRM	63 Neutral	$3.28B	52.66	7.06%	―	56.87%	―
Sector *	62 Neutral	$10.36B	6.35	0.80%	2.84%	3.10%	-36.03%
NGVT	61 Neutral	$2.18B	―	-106.83%	―	-14.45%	49.92%
CC	51 Neutral	$2.34B	59.33	-87.50%	4.31%	2.48%	-459.90%

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.