Perimeter Solutions Inc
PRMBuild a strategy around PRM
Perimeter Solutions Inc AI Insights
Informational only. Not investment advice.Snapshot
- Goodwill of 1.05B is 95% of equity (1.11B) - tangible book value is NEGATIVE (-831M), creating material impairment risk[Goodwill]
- FCF TTM of 169M vs net income of 78M - cash conversion of 217% signals earnings quality despite negative pretax income[Free Cash Flow TTM]
- Gross margin TTM 58% vs industry median 55% with operating margin 4% - massive SG&A drag (248M) consuming 39% of revenue[Operating Margin TTM]
Watch Triggers
- Operating Margin TTM: Sustained above 8% — Would validate operating leverage thesis; current 4% leaves no margin of safety
- Goodwill: Any impairment charge — 1.05B goodwill vs 1.11B equity - even 10% impairment wipes 9% of equity
- Interest Expense TTM: Falls below 30M — Currently 39M consumes 150% of operating income; deleveraging critical to profitability
Bull Case
FCF margin 27% (169M/636M) with 341M cash provides flexibility - FCF exceeds net income by 2.2x indicating sustainable cash generation
Gross margin 58% demonstrates pricing power in specialty chemicals; operating leverage could unlock significant profit expansion if SG&A scales
Bear Case
Intangibles 1.94B are 73% of total assets (2.65B) with negative tangible book - any goodwill impairment destroys equity
P/E 53x vs industry median 20x with only 4% operating margin - valuation assumes margin expansion that may not materialize
Bull vs Bear Balance
AI-generated sentiment analysis based on fundamental metrics and market conditions.
Leverage PRM's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.
Forward Thesis
Operating leverage potential: 58% gross margin with 4% operating margin leaves room for margin expansion
- Gross margin 58% already above industry median 55%
- Operating expenses 345M on 636M revenue (54% of sales)
- Interest expense 39M consuming 150% of operating income
Valuation Context
Caveats
PRM Fundamentals
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$5.12B | — | ||
$6.28B | — | ||
0.00 | — | ||
$705.9M | +23.0% | — | |
$-1.29 | — | ||
-29.2% | -55.2% | — | |
-26.9% | -50.2% | — | |
$79.64M | -58.2% | — | |
-15.7% | -27.5% | — | |
Beta 5Y (Monthly) | unknown | — |
PRM Dividend History
PRM Stock Splits
PRM SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
05/06/26 | 03/31/26 | 10-Q | |
02/26/26 | 12/31/25 | Unknown | |
10/30/25 | 09/30/25 | 10-Q | |
08/07/25 | 06/30/25 | 10-Q | |
05/08/25 | 03/31/25 | 10-Q | |
02/20/25 | 12/31/24 | 10-K | |
11/12/24 | 09/30/24 | 10-Q | |
08/01/24 | 06/30/24 | 10-Q | |
05/09/24 | 03/31/24 | 10-Q | |
02/22/24 | 12/31/23 | 10-K | |
11/09/23 | 09/30/23 | 10-Q | |
08/03/23 | 06/30/23 | 10-Q | |
05/10/23 | 03/31/23 | 10-Q | |
03/01/23 | 12/31/22 | 10-K | |
11/04/22 | 09/30/22 | 10-Q | |
08/05/22 | 06/30/22 | 10-Q | |
05/10/22 | 03/31/22 | 10-Q | |
03/31/22 | 12/31/21 | 10-K | |
12/14/21 | 09/30/21 | 10-Q | |
11/15/21 | 06/30/21 | Quarterly | -- |
05/10/22 | 03/31/21 | 10-Q | |
11/15/21 | 12/31/20 | Annual | -- |
12/14/21 | 09/30/20 | 10-Q |