Perimeter Solutions (PRM) AI Stock Analysis

• Market Cap: $3.13B
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 50.2
• Beta (1Y): 1.16
• 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: 146,452,130
• 10 Day Avg. Volume: 1,340,341
• 30 Day Avg. Volume: 1,072,828
• 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: 0.87
• Enterprise Value/Revenue: 4.29
• Enterprise Value/Gross Profit: 7.68
• Enterprise Value/Ebitda: 28.24
• 1Y Price Target: $26.00
• Price Target Upside: 13.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $26.00 ▲(13.44% Upside)

Perimeter Solutions' overall stock score reflects strong financial performance in key segments and positive technical indicators. However, high valuation and challenges in the Specialty Products segment, along with cash flow management issues, temper the overall outlook.

Positive Factors

Strong Revenue Growth

Consistent revenue growth in the Fire Safety segment indicates robust demand and market leadership, supporting long-term financial stability.

Improved Balance Sheet

Reduced leverage enhances financial stability, providing the company with greater flexibility for strategic investments and growth initiatives.

Strategic Contract Wins

Securing major contracts like with the US Forest Service strengthens market position and ensures steady revenue streams, bolstering long-term growth.

Negative Factors

Operational Challenges

Operational issues at key facilities can disrupt production and financial performance, necessitating corrective measures to ensure stability.

Litigation Concerns

Litigation can be a financial and operational burden, potentially diverting resources and focus from growth initiatives and strategic goals.

Profitability Concerns

Negative EBIT margins highlight operational inefficiencies that could impact profitability, requiring strategic improvements to enhance financial health.

Perimeter Solutions Business Overview & Revenue Model

Company Description

Perimeter Solutions (PRM) is a global leader in the development and production of firefighting foam and related products. The company operates primarily in the fire safety and emergency response sectors, providing innovative solutions for both commercial and government customers. PRM's core offerings include high-performance fire suppression foams, fire safety training services, and specialized equipment designed to enhance firefighting capabilities and improve safety in high-risk environments.

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 a positive revenue growth rate and improved balance sheet strength with reduced leverage. However, profitability and cash flow management present challenges, 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	96.61M	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	2.32B	2.46B	2.59B	1.14B
Cash, Cash Equivalents and Short-Term Investments	340.65M	198.46M	52.80M	126.75M	225.55M	22.48M
Total Debt	34.66M	805.53M	798.26M	788.79M	664.13M	687.27M
Total Liabilities	1.53B	1.26B	1.16B	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: 22.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 22.92 is above the 20-day moving average (MA) of 22.21, above the 50-day MA of 22.11, and above the 200-day MA of 15.04, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 56.38 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	69 Neutral	$2.94B	24.83	5.09%	3.37%	3.28%	1.69%
PRM	67 Neutral	$3.13B	50.24	7.39%	―	19.12%	―
FUL	62 Neutral	$3.10B	27.56	6.05%	1.62%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KWR	58 Neutral	$2.31B	―	-0.64%	1.41%	0.08%	-107.33%
OLN	49 Neutral	$2.29B	43.23	2.67%	3.99%	4.68%	-62.80%
CC	44 Neutral	$2.00B	―	-87.50%	4.91%	2.48%	-459.90%

Perimeter Solutions Corporate Events

Perimeter Solutions’ Earnings Call Highlights Growth and Challenges

Perimeter Solutions’ recent earnings call painted a picture of robust financial health, particularly in its Fire Safety segment, despite some hurdles in other areas. The company celebrated strategic wins, such as a new contract with the US Forest Service and international market growth, which bolstered overall positive sentiment. However, challenges in the Specialty Products segment due to operational issues and ongoing litigation were acknowledged. Overall, the company’s strategic achievements and financial growth were seen as outweighing these challenges.

Perimeter Solutions Reports Q3 2025 Financial Results

Perimeter Solutions, Inc. is a global solutions provider specializing in the Fire Safety and Specialty Products industries, offering a range of products and services to combat various types of fires and develop specialty products for non-fire safety markets. In its third quarter of 2025, Perimeter Solutions reported a net loss of $90.7 million, while achieving an adjusted net income of $125.5 million, driven by a 9% increase in net sales to $315.4 million compared to the previous year. The company also reported an adjusted EBITDA of $186.3 million, reflecting a 9% increase from the prior year. The Fire Safety segment saw a 13% rise in adjusted EBITDA, while the Specialty Products segment experienced a 29% decline. Despite the net loss, Perimeter Solutions demonstrated growth in its Fire Safety and Specialty Products segments, with net sales increasing by 9% and 15% respectively. The company also made strategic moves by acquiring IMS add-on product lines, which are expected to enhance its Specialty Products segment. Looking ahead, Perimeter Solutions remains focused on executing its value-driven strategies and expanding its market presence, as indicated by its recent acquisitions and continued investment in capital expenditures.

Perimeter Solutions’ Earnings Call Highlights Robust Growth

In a recent earnings call, Perimeter Solutions, SA, showcased a robust financial performance, underscored by strategic investments in the Fire Safety and Specialty Products segments. The resolution of litigation with Compass Minerals was a notable highlight, although challenges at the Sauget plant and negative free cash flow were points of concern.

Perimeter Solutions Reports Mixed Q2 2025 Results

Perimeter Solutions, Inc. is a global solutions provider specializing in the Fire Safety and Specialty Products industries, offering advanced fire management products and services as well as specialty chemical products for various applications.