PERIMETER SOLUTIONS INC (PRM) Stock Fundamental Analysis
NYSE:PRM - US71385M1071 - Common Stock
19.48 USD
+0.79 (+4.23%)
19.48 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PRM. PRM was compared to 84 industry peers in the Chemicals industry. PRM has an average financial health and profitability rating. PRM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PRM had negative earnings in the past year.
PRM had a positive operating cash flow in the past year.
In multiple years PRM reported negative net income over the last 5 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 3.20%. This is in the better half of the industry: PRM outperforms 66.67% of its industry peers.
PRM's Return On Equity of 6.75% is fine compared to the rest of the industry. PRM outperforms 70.24% of its industry peers.
PRM has a Return On Invested Capital of 2.58%. This is in the lower half of the industry: PRM underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.75% | ||
| ROIC | 2.58% |
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's Profit Margin of 13.05% is amongst the best of the industry. PRM outperforms 91.67% of its industry peers.
With a decent Operating Margin value of 12.75%, PRM is doing good in the industry, outperforming 69.05% of the companies in the same industry.
PRM's Gross Margin of 57.90% is amongst the best of the industry. PRM outperforms 98.81% of its industry peers.
In the last couple of years the Gross Margin of PRM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.75% | ||
| PM (TTM) | 13.05% | ||
| GM | 57.9% |
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 1.49. This is a bad value and indicates that PRM is not financially healthy and even has some risk of bankruptcy.
PRM's Altman-Z score of 1.49 is on the low side compared to the rest of the industry. PRM is outperformed by 65.48% of its industry peers.
The Debt to FCF ratio of PRM is 5.11, which is a neutral value as it means it would take PRM, 5.11 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 5.11, PRM belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
PRM has a Debt/Equity ratio of 0.67. This is a neutral value indicating PRM is somewhat dependend on debt financing.
The Debt to Equity ratio of PRM (0.67) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.3
WACC8.67%
2.3 Liquidity
A Current Ratio of 4.04 indicates that PRM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.04, PRM belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
PRM has a Quick Ratio of 2.60. This indicates that PRM is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.60, PRM belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.04 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
PRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.00%, which is quite impressive.
The Revenue has grown by 56.85% in the past year. This is a very strong growth!
Measured over the past years, PRM shows a quite strong growth in Revenue. The Revenue has been growing by 18.58% on average per year.
EPS 1Y (TTM)70%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%178.57%
Revenue 1Y (TTM)56.85%
Revenue growth 3Y15.69%
Revenue growth 5Y18.58%
Sales Q2Q%27.78%
3.2 Future
PRM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.08% yearly.
Based on estimates for the next years, PRM will show a small growth in Revenue. The Revenue will grow by 3.43% on average per year.
EPS Next Y215.98%
EPS Next 2Y81.92%
EPS Next 3Y51.08%
EPS Next 5YN/A
Revenue Next Year0.12%
Revenue Next 2Y2.69%
Revenue Next 3Y3.43%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PRM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 16.35, PRM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRM is on the same level as its industry peers.
PRM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRM indicates a slightly more expensive valuation: PRM is more expensive than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PRM is valued a bit cheaper than the industry average as 72.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.44 | ||
| EV/EBITDA | 24.08 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PRM's earnings are expected to grow with 51.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y81.92%
EPS Next 3Y51.08%
5. Dividend
5.1 Amount
No dividends for PRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.48
+0.79 (+4.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.97%
Inst Owner Change3%
Ins Owners8.61%
Ins Owner Change4.76%
Market Cap2.85B
Analysts80
Price Target19.38 (-0.51%)
Short Float %3.3%
Short Ratio3.86
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)71.87%
Min EPS beat(2)45.71%
Max EPS beat(2)98.02%
EPS beat(4)3
Avg EPS beat(4)65.41%
Min EPS beat(4)-196.63%
Max EPS beat(4)314.52%
EPS beat(8)6
Avg EPS beat(8)111.43%
EPS beat(12)9
Avg EPS beat(12)153.12%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)5.2%
Min Revenue beat(2)-4.91%
Max Revenue beat(2)15.31%
Revenue beat(4)2
Avg Revenue beat(4)5.06%
Min Revenue beat(4)-4.91%
Max Revenue beat(4)15.31%
Revenue beat(8)5
Avg Revenue beat(8)16.22%
Revenue beat(12)8
Avg Revenue beat(12)12.54%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.7%
PT rev (3m)18.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.43%
EPS NY rev (1m)5.03%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)-7.5%
Revenue NQ rev (3m)-12.3%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)5.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.35 | ||
| P/S | 4.68 | ||
| P/FCF | 18.44 | ||
| P/OCF | 14.42 | ||
| P/B | 2.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.08 |
EPS(TTM)-0.06
EYN/A
EPS(NY)1.19
Fwd EY6.12%
FCF(TTM)1.06
FCFY5.42%
OCF(TTM)1.35
OCFY6.94%
SpS4.16
BVpS8.05
TBVpS-5.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.75% | ||
| ROCE | 3.26% | ||
| ROIC | 2.58% | ||
| ROICexc | 2.74% | ||
| ROICexgc | 21.03% | ||
| OM | 12.75% | ||
| PM (TTM) | 13.05% | ||
| GM | 57.9% | ||
| FCFM | 25.39% |
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-Score9
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.11 | ||
| Debt/EBITDA | 5.43 | ||
| Cap/Depr | 63.66% | ||
| Cap/Sales | 7.08% | ||
| Interest Coverage | 1.95 | ||
| Cash Conversion | 136.06% | ||
| Profit Quality | 194.56% | ||
| Current Ratio | 4.04 | ||
| Quick Ratio | 2.6 | ||
| Altman-Z | 1.49 |
F-Score9
WACC8.67%
ROIC/WACC0.3
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)70%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%178.57%
EPS Next Y215.98%
EPS Next 2Y81.92%
EPS Next 3Y51.08%
EPS Next 5YN/A
Revenue 1Y (TTM)56.85%
Revenue growth 3Y15.69%
Revenue growth 5Y18.58%
Sales Q2Q%27.78%
Revenue Next Year0.12%
Revenue Next 2Y2.69%
Revenue Next 3Y3.43%
Revenue Next 5YN/A
EBIT growth 1Y166.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.48%
EBIT Next 3Y15.58%
EBIT Next 5YN/A
FCF growth 1Y572.59%
FCF growth 3Y40.29%
FCF growth 5YN/A
OCF growth 1Y932.76%
OCF growth 3Y37.57%
OCF growth 5YN/A