(PRM) Perimeter Solutions - NYSE
Sector: Basic Materials | Industry: Specialty Chemicals | Exchange: NYSE (USA) | Market Cap: 5.977m USD | Total Return: 146.8% in 12m
Avg Turnover: 48.0M
Qual. Beats: 0
Rev. Trend: 95.7%
Qual. Beats: 0
Warnings
Interest Coverage Ratio -3.7 is critical
Altman Z'' -0.02 < 1.0 - financial distress zone
Tailwinds
Rs Leader, Idiosyncratic Leader
Perimeter Solutions, Inc. (NYSE: PRM) is a specialty manufacturer operating through two segments: Fire Safety and Specialty Products. The Fire Safety segment supplies fire retardants, firefighting foams, and related equipment and services primarily to federal, state, provincial, local/municipal, and commercial customers. The Specialty Products segment produces phosphorus pentasulfide-based lubricant additives (used in pesticide and mining chemical applications), electric battery technologies, engineered machinery, and OEM/automation solutions for medical devices such as catheters, guidewires, and microcoils.
The company was founded in 1963 and is headquartered in Clayton, Missouri, with operations spanning the United States, Germany, and other international markets. Despite its GICS classification under Materials (Diversified Metals & Mining), PRMs revenue mix is more aligned with specialty chemicals and industrial manufacturing, with significant exposure to government wildfire-suppression contracts, which tend to be counter-seasonal and weather-dependent.
- PFAS foam bans and lawsuits pressure fire safety margins
- Severe wildfire seasons boost Phos-Chek retardant demand
- Battery technology growth expands specialty product revenue
| Net Income: -190.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -5.20 > 1.0 |
| NWC/Revenue: 38.15% < 20% (prev 54.31%; Δ -16.17% < -1%) |
| CFO/TA 0.04 > 3% & CFO 132.1m > Net Income -190.1m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 3.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (165.1m) vs 12m ago 5.33% < -2% |
| Gross Margin: 53.15% > 18% (prev 56.54%; Δ -3.39% > 0.5%) |
| Asset Turnover: 25.35% > 50% (prev 23.86%; Δ 1.49% > 0%) |
| Interest Coverage Ratio: -3.75 > 6 (EBIT TTM -201.7m / Interest Expense TTM 53.8m) |
| A: 0.09 (Total Current Assets 398.2m - Total Current Liabilities 128.9m) / Total Assets 3.16b |
| B: -0.23 (Retained Earnings -720.2m / Total Assets 3.16b) |
| C: -0.07 (EBIT TTM -201.7m / Avg Total Assets 2.78b) |
| D: 0.61 (Book Value of Equity 1.20b / Total Liabilities 1.96b) |
| Altman-Z'' = -0.02 = B |
| DSRI: 1.56 (Receivables 98.3m/51.3m, Revenue 705.9m/574.0m) |
| GMI: 1.06 (GM 56.54% / 53.15%) |
| AQI: 1.03 (AQ_t 0.83 / AQ_t-1 0.80) |
| SGI: 1.23 (Revenue 705.9m / 574.0m) |
| TATA: -0.10 (NI -190.1m - CFO 132.1m) / TA 3.16b) |
| Beneish M = -2.33 (Cap -4..+1) = BBB |
As of June 27, 2026, the stock is trading at USD 34.40 with a total of 9,629,516 shares traded. Over the past week, the price has changed by -8.95%, over one month by +9.66%, over three months by +60.45% and over the past year by +146.77%.
Current recommended Stop Loss: 31.20 (which is 9.3% or 2.2 ATR below the current price).
Perimeter Solutions has received a consensus analysts rating of 4.50. Therefore, it is recommended to buy PRM.
- StrongBuy: 1
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 40.7 | 18.2% |
P/E Forward = 15.9744
P/S = 8.4672
P/B = 4.8389
Revenue TTM = 705.9m USD
EBIT TTM = -201.7m USD
EBITDA TTM = -132.0m USD
Long Term Debt = 1.21b USD (from longTermDebt, last quarter)
Short Term Debt = 4.42m USD (from shortTermDebt, two quarters ago)
Debt = 1.41b USD (from shortLongTermDebtTotal, last quarter) + Leases 45.2m
Net Debt = 1.32b USD (calculated: Debt 1.41b - CCE 91.6m)
Enterprise Value = 7.30b USD (5.98b + Debt 1.41b - CCE 91.6m)
Interest Coverage Ratio = -3.75 (Ebit TTM -201.7m / Interest Expense TTM 53.8m)
EV/FCF = 84.82x (Enterprise Value 7.30b / FCF TTM 86.0m)
FCF Yield = 1.18% (FCF TTM 86.0m / Enterprise Value 7.30b)
FCF Margin = 12.19% (FCF TTM 86.0m / Revenue TTM 705.9m)
Net Margin = -26.93% (Net Income TTM -190.1m / Revenue TTM 705.9m)
Gross Margin = 53.15% ((Revenue TTM 705.9m - Cost of Revenue TTM 330.7m) / Revenue TTM)
Gross Margin QoQ = 22.54% (prev 59.94%)
Tobins Q-Ratio = 2.31 (Enterprise Value 7.30b / Total Assets 3.16b)
Interest Expense / Debt = 3.81% (Interest Expense 53.8m / Debt 1.41b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -159.4m (EBIT -201.7m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 3.09 (Total Current Assets 398.2m / Total Current Liabilities 128.9m)
Debt / Equity = 1.17 (Debt 1.41b / totalStockholderEquity, last quarter 1.20b)
Debt / EBITDA = -10.00 (negative EBITDA) (Net Debt 1.32b / EBITDA -132.0m)
Debt / FCF = 15.34 (Net Debt 1.32b / FCF TTM 86.0m)
Total Stockholder Equity = 1.16b (last 4 quarters mean from totalStockholderEquity)
RoA = -6.83% (Net Income -190.1m / Total Assets 3.16b)
RoE = -16.43% (Net Income TTM -190.1m / Total Stockholder Equity 1.16b)
RoCE = -8.52% (EBIT -201.7m / Capital Employed (Equity 1.16b + L.T.Debt 1.21b))
RoIC = -5.31% (negative operating profit) (NOPAT -159.4m / Invested Capital 3.00b)
WACC = 7.76% (E(5.98b)/V(7.39b) * Re(8.88%) + D(1.41b)/V(7.39b) * Rd(3.81%) * (1-Tc(0.21)))
Discount Rate = 8.88% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 20.0 | Cagr: 4.09%
[DCF] Terminal Value 73.10% ; FCFF base≈127.8m ; Y1≈112.1m ; Y5≈90.6m
[DCF] Fair Price = 0.82 (EV 1.45b - Net Debt 1.32b = Equity 133.9m / Shares 163.1m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.08 | # QB: 0
Revenue Correlation: 95.71 | Revenue CAGR: 40.80% | SUE: 0.12 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.44 | Chg30d=-1.51% | Revisions=+20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.98 | Chg30d=-3.18% | Revisions=+20% | Analysts=2
EPS current Year (2026-12-31): EPS=1.66 | Chg30d=-0.66% | Revisions=+20% | GrowthEPS=+23.9% | GrowthRev=+34.9%
EPS next Year (2027-12-31): EPS=1.93 | Chg30d=-1.33% | Revisions=+20% | GrowthEPS=+16.0% | GrowthRev=+11.6%
[Analyst] Revisions Ratio: +20%