PERIMETER SOLUTIONS INC (PRM) Stock Fundamental Analysis
NYSE:PRM - New York Stock Exchange, Inc. - US71385M1071 - Common Stock - Currency: USD
Taking everything into account, PRM scores 5 out of 10 in our fundamental rating. PRM was compared to 85 industry peers in the Chemicals industry. Both the profitability and the financial health of PRM get a neutral evaluation. Nothing too spectacular is happening here. PRM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PRM has reported negative net income.
In the past year PRM had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PRM reported negative net income in multiple years.
PRM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PRM has a Return On Assets of 5.54%. This is amongst the best in the industry. PRM outperforms 82.35% of its industry peers.
PRM's Return On Equity of 10.96% is fine compared to the rest of the industry. PRM outperforms 76.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.05%, PRM is in line with its industry, outperforming 54.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 10.96% | ||
| ROIC | 5.05% |
ROA(3y)2.14%
ROA(5y)-3.4%
ROE(3y)4.47%
ROE(5y)-7.84%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PRM has a Profit Margin of 23.23%. This is amongst the best in the industry. PRM outperforms 100.00% of its industry peers.
The Operating Margin of PRM (25.94%) is better than 92.94% of its industry peers.
The Gross Margin of PRM (56.54%) is better than 98.82% of its industry peers.
In the last couple of years the Gross Margin of PRM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.94% | ||
| PM (TTM) | 23.23% | ||
| GM | 56.54% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.47%
GM growth 5Y10.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRM is destroying value.
The number of shares outstanding for PRM has been increased compared to 1 year ago.
Compared to 5 years ago, PRM has less shares outstanding
PRM has a better debt/assets ratio than last year.
2.2 Solvency
PRM has an Altman-Z score of 1.46. This is a bad value and indicates that PRM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.46, PRM is doing worse than 68.24% of the companies in the same industry.
PRM has a debt to FCF ratio of 4.14. This is a neutral value as PRM would need 4.14 years to pay back of all of its debts.
PRM's Debt to FCF ratio of 4.14 is amongst the best of the industry. PRM outperforms 83.53% of its industry peers.
PRM has a Debt/Equity ratio of 0.65. This is a neutral value indicating PRM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, PRM is in line with its industry, outperforming 50.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.6
WACC8.37%
2.3 Liquidity
PRM has a Current Ratio of 5.23. This indicates that PRM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.23, PRM belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
A Quick Ratio of 3.56 indicates that PRM has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.56, PRM belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.56 |
3. Growth
3.1 Past
PRM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -933.33%.
Looking at the last year, PRM shows a very strong growth in Revenue. The Revenue has grown by 70.16%.
PRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.58% yearly.
EPS 1Y (TTM)-933.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%105.26%
Revenue 1Y (TTM)70.16%
Revenue growth 3Y15.69%
Revenue growth 5Y18.58%
Sales Q2Q%21.99%
3.2 Future
The Earnings Per Share is expected to grow by 50.43% on average over the next years. This is a very strong growth
Based on estimates for the next years, PRM will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y210.43%
EPS Next 2Y80.39%
EPS Next 3Y50.43%
EPS Next 5YN/A
Revenue Next Year-0.32%
Revenue Next 2Y2.48%
Revenue Next 3Y3.27%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PRM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 13.70, the valuation of PRM can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRM is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PRM to the average of the S&P500 Index (36.21), we can say PRM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, PRM is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.12 | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
PRM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PRM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PRM's earnings are expected to grow with 50.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y80.39%
EPS Next 3Y50.43%
5. Dividend
5.1 Amount
No dividends for PRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.64
-0.49 (-3.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.68%
Inst Owner Change0%
Ins Owners7.37%
Ins Owner Change4.76%
Market Cap2.31B
Analysts80
Price Target18.87 (20.65%)
Short Float %3.4%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)206.27%
Min EPS beat(2)98.02%
Max EPS beat(2)314.52%
EPS beat(4)3
Avg EPS beat(4)260%
Min EPS beat(4)-196.63%
Max EPS beat(4)824.09%
EPS beat(8)6
Avg EPS beat(8)194.95%
EPS beat(12)9
Avg EPS beat(12)162.36%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.98%
Min Revenue beat(2)-4.91%
Max Revenue beat(2)10.87%
Revenue beat(4)2
Avg Revenue beat(4)12.23%
Min Revenue beat(4)-4.91%
Max Revenue beat(4)43.99%
Revenue beat(8)5
Avg Revenue beat(8)16.22%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)15.63%
PT rev (3m)15.63%
EPS NQ rev (1m)15.22%
EPS NQ rev (3m)12.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)28.23%
Revenue NQ rev (3m)32.62%
Revenue NY rev (1m)3.68%
Revenue NY rev (3m)5.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.7 | ||
| P/S | 4.03 | ||
| P/FCF | 12.12 | ||
| P/OCF | 11.04 | ||
| P/B | 1.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.48 |
EPS(TTM)-0.31
EYN/A
EPS(NY)1.14
Fwd EY7.3%
FCF(TTM)1.29
FCFY8.25%
OCF(TTM)1.42
OCFY9.06%
SpS3.89
BVpS8.23
TBVpS-4.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 10.96% | ||
| ROCE | 6.39% | ||
| ROIC | 5.05% | ||
| ROICexc | 5.52% | ||
| ROICexgc | 57.84% | ||
| OM | 25.94% | ||
| PM (TTM) | 23.23% | ||
| GM | 56.54% | ||
| FCFM | 33.2% |
ROA(3y)2.14%
ROA(5y)-3.4%
ROE(3y)4.47%
ROE(5y)-7.84%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.47%
GM growth 5Y10.02%
F-Score8
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.14 | ||
| Debt/EBITDA | 3.66 | ||
| Cap/Depr | 28.39% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 4.01 | ||
| Cash Conversion | 97.32% | ||
| Profit Quality | 142.91% | ||
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.56 | ||
| Altman-Z | 1.46 |
F-Score8
WACC8.37%
ROIC/WACC0.6
Cap/Depr(3y)17.09%
Cap/Depr(5y)16.01%
Cap/Sales(3y)2.7%
Cap/Sales(5y)2.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-933.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%105.26%
EPS Next Y210.43%
EPS Next 2Y80.39%
EPS Next 3Y50.43%
EPS Next 5YN/A
Revenue 1Y (TTM)70.16%
Revenue growth 3Y15.69%
Revenue growth 5Y18.58%
Sales Q2Q%21.99%
Revenue Next Year-0.32%
Revenue Next 2Y2.48%
Revenue Next 3Y3.27%
Revenue Next 5YN/A
EBIT growth 1Y214.02%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year29.71%
EBIT Next 3Y13.91%
EBIT Next 5YN/A
FCF growth 1Y1889.27%
FCF growth 3Y40.29%
FCF growth 5YN/A
OCF growth 1Y23622.2%
OCF growth 3Y37.57%
OCF growth 5YN/A