Perimeter Solutions, SA (PRM) AI Stock Analysis
PRM AI stock analysis summary
AI ResearchPerimeter Solutions, SA manufactures firefighting chemicals and lubricant additives across its Fire Safety and Oil Additives segments. TTM revenue reached $757.1M following 31.5% quarterly year-over-year revenue growth as of June 30, 2026. However, operating margin TTM was -95.0% and total debt stood at $1.37B.
- Market cap
- $4.34B
- Revenue (TTM)
- $757.1M
- P/E
- — fwd 17.9x
- 1Y return
- 20.7% S&P 500 16.8%
- Avg. target
- $41.50 56.4% vs last close
Bull case
- Free cash flow reached $208.6M in FY2025, supported by $238.1M in operating cash flow.
- Quarterly revenue grew 31.5% year-over-year for the period ending June 30, 2026, lifting TTM revenue to $757.1M.
- Analyst sentiment is entirely favorable across 4 Buy or Strong Buy ratings, with a mean price target of $41.50 implying 56.4% upside.
Bear case
- Perimeter Solutions generated a net loss of $206.4M in FY2025 and carries a TTM profit margin of -44.9%.
- Balance sheet leverage remains elevated with total debt of $1.37B and net debt of $1.29B against $82.8M in cash.
- Valuation multiples trade at a premium to peers, including an EV/EBITDA of 25.6x versus the 10.5x median for US-listed Basic Materials peers.
What Perimeter Solutions does
Perimeter Solutions, SA, headquartered in Clayton, Missouri, manufactures and supplies firefighting products and lubricant additives globally. The company operates through two segments: Fire Safety and Oil Additives. In Fire Safety, it provides fire retardants, firefighting foams, specialized equipment, and related services to federal, state, local agencies, and commercial entities. In Oil Additives, it produces Phosphorus Pentasulfide, an ingredient used in lubricant additives such as Zinc Dialkyldithiophosphates for industrial applications. The company markets products under brands including PHOS-CHEK, FIRE-TROL, AUXQUIMIA, SOLBERG, and BIOGEMA.
Growth and profitability
Perimeter Solutions grew annual revenue from $362.3M in FY2021 to $652.9M in FY2025, recording a 5-year revenue CAGR of 14.0% from FY2020. Gross margin expanded from 47.6% in FY2021 to 57.5% in FY2025. Operating margin shifted from -165.6% in FY2021 to 36.1% in FY2022, 29.3% in FY2023, -0.7% in FY2024, and -30.8% in FY2025. The company posted net income of -$206.4M in FY2025. For the quarter ended June 30, 2026, revenue increased 31.5% year-over-year and quarterly earnings grew 22.2%, bringing TTM revenue to $757.1M.
Balance sheet and cash flow
As of June 30, 2026, Perimeter Solutions had $82.8M in cash and short-term investments against $1.37B in total debt, resulting in net debt of $1.29B. Shareholders' equity was $1.02B, yielding a debt-to-equity ratio of 1.34 and a current ratio of 1.57. For FY2025, operating cash flow totaled $238.1M and free cash flow reached $208.6M. Capital expenditures absorbed $29.6M, while share buybacks totaled $40.4M.
Valuation and performance
Perimeter Solutions closed at $26.54 on October 16, 2026, giving it an enterprise value of $5.81B and a market cap of $4.34B. The stock trades at a forward P/E of 17.9x, above the 13.4x median of its US-listed Basic Materials peers. Its EV/EBITDA of 25.6x and price-to-sales of 5.7x also trade at premiums to the peer medians of 10.5x and 1.8x, respectively. Over the past year, the stock gained 20.7%, outpacing the S&P 500 return of 16.8%, and its 5-year return of 272.8% exceeded the index return of 83.0%.
What analysts expect
Wall Street analysts maintain 1 Strong Buy and 3 Buy ratings, with no Hold or Sell recommendations. The mean price target of $41.50 represents a 56.4% premium over the last close of $26.54. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $886.5M and EPS of $1.56, indicating 16.7% EPS growth. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 29, 2026.
Key risks and what to watch
- The stock has a beta of 1.92 and closed 10.4% below its 200-day average, signaling significant price volatility.
- Operating performance has been volatile, evidenced by a TTM operating margin of -95.0% and TTM ROE of -30.9%.
- A debt-to-equity ratio of 1.34 leaves the company with substantial debt service requirements relative to its $1.02B in shareholders' equity.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this PRM AI stock analysis
This page is an AI-written research summary of Perimeter Solutions, SA (PRM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: PRM income statement, PRM balance sheet, PRM key metrics, PRM analyst forecast, PRM chart. See the PRM stock overview for the latest quote and news.
PRM AI stock analysis FAQ
What products does Perimeter Solutions manufacture?
Perimeter Solutions produces firefighting products such as retardants, foams, and equipment under brands like PHOS-CHEK, as well as Phosphorus Pentasulfide for lubricant additives.
Does Perimeter Solutions pay a dividend?
Perimeter Solutions does not pay a dividend, though the company repurchased $40.4M of its own shares in FY2025.
What is Perimeter Solutions' debt position?
As of June 30, 2026, the company held $82.8M in cash and short-term investments against $1.37B in total debt, leaving net debt at $1.29B.
When is Perimeter Solutions' next earnings release?
Perimeter Solutions is scheduled to report earnings on October 29, 2026.