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PERIMETER SOLUTIONS INC (PRM) Stock Fundamental Analysis

NYSE:PRM - New York Stock Exchange, Inc. - US71385M1071 - Common Stock - Currency: USD

13.76  +0.48 (+3.61%)

After market: 13.8 +0.04 (+0.29%)

Fundamental Rating

5

PRM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

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.
Of the past 5 years PRM 4 years had a positive operating cash flow.
PRM Yearly Net Income VS EBIT VS OCF VS FCFPRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 -200M -400M -600M

1.2 Ratios

PRM has a Return On Assets of 5.54%. This is amongst the best in the industry. PRM outperforms 81.18% of its industry peers.
PRM's Return On Equity of 10.96% is fine compared to the rest of the industry. PRM outperforms 75.29% of its industry peers.
With a Return On Invested Capital value of 5.05%, PRM perfoms like the industry average, outperforming 54.12% of the companies in the same industry.
Industry RankSector 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
PRM Yearly ROA, ROE, ROICPRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 -20 -40 -60

1.3 Margins

The Profit Margin of PRM (23.23%) is better than 100.00% of its industry peers.
PRM's Operating Margin of 25.94% is amongst the best of the industry. PRM outperforms 92.94% of its industry peers.
PRM's Gross Margin of 56.54% is amongst the best of the industry. PRM outperforms 98.82% of its industry peers.
PRM's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
PRM Yearly Profit, Operating, Gross MarginsPRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150

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6

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.
PRM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PRM has an improved debt to assets ratio.
PRM Yearly Shares OutstandingPRM Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 50M 100M 150M
PRM Yearly Total Debt VS Total AssetsPRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

PRM has an Altman-Z score of 1.28. This is a bad value and indicates that PRM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of PRM (1.28) is worse than 69.41% of its industry peers.
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 82.35% 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.
The Debt to Equity ratio of PRM (0.65) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF 4.14
Altman-Z 1.28
ROIC/WACC0.59
WACC8.55%
PRM Yearly LT Debt VS Equity VS FCFPRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 5.23 indicates that PRM has no problem at all paying its short term obligations.
PRM has a better Current ratio (5.23) than 94.12% of its industry peers.
PRM has a Quick Ratio of 3.56. This indicates that PRM is financially healthy and has no problem in meeting its short term obligations.
PRM has a Quick ratio of 3.56. This is amongst the best in the industry. PRM outperforms 91.76% of its industry peers.
Industry RankSector Rank
Current Ratio 5.23
Quick Ratio 3.56
PRM Yearly Current Assets VS Current LiabilitesPRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 100M 200M 300M

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4

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%.
PRM shows a strong growth in Revenue. In the last year, 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
PRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.96% yearly.
EPS Next Y210.43%
EPS Next 2Y80.39%
EPS Next 3Y50.43%
EPS Next 5YN/A
Revenue Next Year-3.86%
Revenue Next 2Y0.53%
Revenue Next 3Y1.96%
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.
PRM Yearly Revenue VS EstimatesPRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M 500M
PRM Yearly EPS VS EstimatesPRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2027 0 0.5 -0.5 1

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for PRM. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 12.06, PRM is valued correctly.
Based on the Price/Forward Earnings ratio, PRM is valued a bit cheaper than the industry average as 67.06% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PRM to the average of the S&P500 Index (21.27), we can say PRM is valued slightly cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 12.06
PRM Price Earnings VS Forward Price EarningsPRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40

4.2 Price Multiples

PRM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PRM is valued cheaper than 87.06% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.67
EV/EBITDA 11.86
PRM Per share dataPRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 6 8

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.
The decent profitability rating of PRM may justify a higher PE ratio.
PRM's earnings are expected to grow with 50.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y80.39%
EPS Next 3Y50.43%

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0

5. Dividend

5.1 Amount

No dividends for PRM!.
Industry RankSector Rank
Dividend Yield N/A

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PERIMETER SOLUTIONS INC

NYSE:PRM (6/23/2025, 7:22:50 PM)

After market: 13.8 +0.04 (+0.29%)

13.76

+0.48 (+3.61%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)05-08 2025-05-08/dmh
Earnings (Next)08-09 2025-08-09/bmo
Inst Owners84.68%
Inst Owner Change-1.98%
Ins Owners7.37%
Ins Owner Change-2.32%
Market Cap2.03B
Analysts80
Price Target16.32 (18.6%)
Short Float %3.02%
Short Ratio4.07
Dividend
Industry RankSector 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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)39.39%
EPS NY rev (1m)0%
EPS NY rev (3m)51.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.55%
Revenue NY rev (1m)1.76%
Revenue NY rev (3m)-2.07%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 12.06
P/S 3.54
P/FCF 10.67
P/OCF 9.71
P/B 1.67
P/tB N/A
EV/EBITDA 11.86
EPS(TTM)-0.31
EYN/A
EPS(NY)1.14
Fwd EY8.29%
FCF(TTM)1.29
FCFY9.37%
OCF(TTM)1.42
OCFY10.3%
SpS3.89
BVpS8.23
TBVpS-4.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.28
F-Score8
WACC8.55%
ROIC/WACC0.59
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-3.86%
Revenue Next 2Y0.53%
Revenue Next 3Y1.96%
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