Perimeter Solutions (PRM) AI Stock Analysis

• Market Cap: $4.38B
• Dividend Yield: N/A
• Average Volume (3M): 785.14K
• Price to Earnings (P/E): 65.9
• Beta (1Y): 1.07
• Revenue Growth: 19.12%
• EPS Growth: N/A
• Country: US
• Employees: 319
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.82
• Shares Outstanding: 147,923,720
• 10 Day Avg. Volume: 565,751
• 30 Day Avg. Volume: 785,142
• PEG Ratio: 2.89
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 3.32
• P/FCF Ratio: 10.77
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 4.68
• Enterprise Value/Gross Profit: 8.39
• Enterprise Value/Ebitda: 30.81
• 1Y Price Target: $33.00
• Price Target Upside: 18.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.43
• Revenue Forecast (FY): $678.76M

• Rating: 62 Neutral
• Price Target: $29.00 ▲(4.39% Upside)

The score is driven primarily by moderate financial performance (strong gross margins and improved leverage, but mixed profitability and cash flow quality) and only neutral technical momentum. A high P/E valuation is a major offset, while the earnings call and recent financing/M&A-related events add a supportive, but not decisive, positive tilt.

Positive Factors

Strong Fire Safety Performance

The Fire Safety segment's robust growth underscores PRM's strong market position and ability to capitalize on increasing demand for fire safety solutions, supporting long-term revenue stability.

Improved Balance Sheet

A low debt-to-equity ratio enhances financial stability, providing PRM with greater flexibility to invest in growth opportunities and withstand economic fluctuations.

New US Forest Service Contract

The contract with the US Forest Service strengthens PRM's foothold in government contracts, ensuring a steady revenue stream and enhancing its reputation in the fire safety sector.

Negative Factors

Operational Challenges in Specialty Products

Persistent operational issues in the Specialty Products segment could hinder profitability and divert resources, affecting overall company performance.

Litigation Concerns

Continued litigation poses financial and operational risks, potentially impacting PRM's ability to focus on strategic initiatives and growth.

High Leverage from Planned Acquisition

The acquisition of MMT and associated debt could increase financial risk, potentially straining cash flow and limiting future investment capacity.

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 multiple key streams, primarily from the sale of firefighting foam products and associated equipment. The company has established long-term contracts with various governmental and industrial clients, which provide a steady flow of income. Additionally, PRM offers training services related to the application and management of its products, creating an additional revenue stream. Significant partnerships with emergency response agencies and collaborations with firefighting equipment manufacturers further bolster its market presence and financial performance. The company also benefits from ongoing demand for fire safety solutions across various industries, including aviation, oil and gas, and manufacturing, contributing to its overall earnings.

Perimeter Solutions Financial Statement Overview

Summary

Perimeter Solutions shows positive revenue growth and improved balance sheet strength with reduced leverage. However, challenges in profitability and cash flow management persist, indicating a need for operational efficiency improvements.

Income Statement

Perimeter Solutions shows a positive revenue growth rate of 4.44% TTM, indicating a recovery from previous declines. The gross profit margin remains strong at 55.95%, but the net profit margin is modest at 12.26% TTM. EBIT margin is negative, reflecting operational challenges. Overall, the income statement reflects moderate growth with some profitability concerns.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.03 TTM, indicating reduced leverage and a stronger equity position. Return on equity is modest at 6.69% TTM, suggesting moderate efficiency in generating profits from shareholders' equity. The balance sheet shows improved financial stability and reduced risk.

Cash Flow

Operating cash flow is strong at $222.86 million TTM, but the free cash flow to net income ratio is negative, indicating potential cash flow management issues. Free cash flow growth is positive at 15.16%, showing improvement. The cash flow statement reflects strong operational cash generation but highlights areas for improvement in cash flow allocation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	636.34M	560.97M	322.11M	360.50M	362.34M	339.58M
Gross Profit	355.45M	317.09M	128.29M	128.65M	172.62M	162.04M
EBITDA	96.75M	61.95M	200.04M	195.86M	-529.53M	129.59M
Net Income	78.03M	-5.91M	67.49M	91.76M	-661.52M	24.25M
Balance Sheet
Total Assets	2.65B	2.42B	2.33B	2.46B	2.58B	1.14B
Cash, Cash Equivalents and Short-Term Investments	340.65M	198.46M	52.80M	126.75M	225.55M	22.48M
Total Debt	707.85M	805.53M	798.26M	684.30M	664.13M	687.27M
Total Liabilities	1.53B	1.26B	1.18B	1.32B	1.50B	846.78M
Stockholders Equity	1.11B	1.16B	1.15B	1.14B	1.08B	291.42M
Cash Flow
Free Cash Flow	178.21M	172.86M	-9.24M	-48.78M	62.60M	63.33M
Operating Cash Flow	222.86M	188.39M	193.00K	-40.17M	72.35M	70.83M
Investing Cash Flow	-100.18M	-42.94M	-14.89M	-10.25M	-1.23B	-9.47M
Financing Cash Flow	2.30M	8.35M	-64.45M	-48.81M	-761.43M	-45.61M

Perimeter Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.78
• 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 27.78 is below the 20-day moving average (MA) of 28.12, above the 50-day MA of 27.11, and above the 200-day MA of 18.87, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 71.16 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
AVNT	63 Neutral	$3.14B	27.81	4.79%	3.48%	1.03%	-24.57%
PRM	62 Neutral	$4.38B	65.94	7.39%	―	19.12%	―
FUL	62 Neutral	$3.54B	31.46	6.05%	1.54%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KWR	58 Neutral	$2.62B	-297.82	-0.64%	1.37%	0.08%	-107.33%
OLN	52 Neutral	$2.72B	51.44	2.67%	3.91%	4.68%	-62.80%
CC	49 Neutral	$2.14B	-6.64	-69.74%	4.37%	2.12%	-579.74%

Perimeter Solutions Corporate Events

Perimeter Solutions Issues Notes to Finance Strategic Acquisition

On January 2, 2026, Perimeter Holdings, LLC, an indirect wholly owned subsidiary of Perimeter Solutions, Inc., completed a $550 million offering of 6.250% senior secured notes due January 15, 2034, in a private placement exempt from SEC registration, with interest payable semi-annually starting July 15, 2026. The company plans to use the proceeds, along with cash on hand, to fund the acquisition of Medical Manufacturing Technologies, LLC and related transaction costs, with the notes fully and unconditionally guaranteed on a senior secured basis by Perimeter Intermediate, LLC and certain restricted subsidiaries and secured by a first-priority lien on substantially all of their assets; the notes carry customary covenants, redemption features including a mandatory redemption if the MMT deal is not completed by September 9, 2026 or is abandoned, and a change-of-control put right at 101% of principal, underscoring Perimeter’s effort to balance acquisition-driven growth with creditor protections and structured downside safeguards for investors.

The most recent analyst rating on (PRM) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.

Perimeter Solutions Secures New Credit Facility, Ends Lawsuit

On December 19, 2025, Perimeter Holdings, LLC, an indirect subsidiary of Perimeter Solutions, Inc., entered into an amended and restated credit agreement that established a senior secured revolving credit facility of up to $200 million, maturing in 2030 and backed by first-priority liens on substantially all assets of Perimeter Holdings and its guarantor subsidiaries, with features allowing increased commitments tied to EBITDA and leverage-based interest margins. Separately, the company resolved a stockholder class action filed on October 1, 2025, in Delaware Chancery Court challenging the board terms of two directors; after the board in late October 2025 confirmed the directors’ elections and disclosed that they will stand for election at the 2026 annual meeting and annually thereafter, the plaintiff agreed the claims were mooted, and on December 22, 2025, the court closed the case following the company’s agreement to pay $725,000 in attorneys’ fees and expenses, eliminating ongoing litigation risk and related distraction without any admission of wrongdoing.

The most recent analyst rating on (PRM) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.

Perimeter Solutions Announces $550M Notes Offering

On December 15, 2025, Perimeter Solutions announced that its subsidiary, Perimeter Holdings, LLC, plans to offer $550 million in senior secured notes due 2034. The proceeds are intended to fund the acquisition of Medical Manufacturing Technologies LLC, with contingencies in place if the acquisition does not proceed. This move is part of Perimeter Holdings’ strategy to expand its operations and improve its financial structure by amending its revolving credit facility.

The most recent analyst rating on (PRM) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.

Perimeter Solutions to Acquire Medical Manufacturing Technologies

On December 9, 2025, Perimeter Solutions announced a definitive agreement to acquire Medical Manufacturing Technologies LLC (MMT) for $685 million in cash. MMT specializes in machinery and consumables for minimally invasive medical devices, generating significant revenue from proprietary products and aftermarket services. The acquisition aligns with Perimeter’s strategy and is expected to be funded through new debt and cash on hand, closing in the first quarter of 2026. This move is anticipated to enhance Perimeter’s market position by integrating MMT’s growth and operational strengths into its decentralized structure.

The most recent analyst rating on (PRM) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.

Perimeter Solutions Announces Vice Chairman’s Upcoming Departure

Perimeter Solutions, Inc. announced that Edward Goldberg will step down as Vice Chairman effective March 31, 2026. Post this date, Goldberg will continue as a consultant, advising on strategic matters related to the Fire Safety business and maintaining key relationships. The company plans to finalize a separation agreement with Goldberg, with terms to be disclosed upon approval.

The most recent analyst rating on (PRM) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Perimeter Solutions stock, see the PRM Stock Forecast page.