# Perimeter Solutions (PRM.US)

Canonical: https://gigainvestors.com/s/PRM

Analysis as of: 2026-10-16T07:31:20.060Z. Financial observations: FY2019–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $27.30 per share; close as of 2026-10-15.

Estimated value: low $4.40 per share, central $4.95 per share, high $5.69 per share. Buy at or below the central value $4.95 per share. Valuation as of 2026-10-16T07:31:20.060Z; scenarios are not confidence intervals.

Expected annual return: 4.1% at the stated quote. About 4.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 8 years

- Years with declining revenue: 2

- Years with a net loss: 5

- Operating margin variation: 3.39×

Chart: Operating margin; fiscal year observations.

- FY2019: -0.02×

- FY2020: 0.21×

- FY2021: -1.66×

- FY2022: 0.36×

- FY2023: 0.29×

- FY2024: -0.01×

- FY2025: -0.31×

- LTM to Jun 2026: -0.30×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -0.5%

- ROIC, second-lowest year: -35.3%

- Typical minus recent gross margin: -8.9 pp

- Typical gross margin (annual median): 47.6%

- Recent gross margin (lower of latest and 3-year median): 56.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.8%

- ROIC including acquisitions, ten-year median: 2.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: -0.9%

- FY2020: 10.5%

- FY2021: -73.0%

- FY2022: 18.5%

- FY2023: 12.5%

- FY2024: -0.5%

- FY2025: -35.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$456M

- Net income, five-year total: -$715M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.0 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$610M

- FY2022: $149M

- FY2023: $123M

- FY2024: $44M

- FY2025: -$162M

### management: fail

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -0.9% vs -0.5%

- Per-share earnings: -0.79 to -0.04 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 23.2%

- Diluted shares, 5-year annual growth: 23.2%

- Per-share value change: $0.75

- Per-share value, starting three-year median: -$0.79

- Per-share value, ending three-year median: -$0.04

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 3.5%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: -0.9%

- ROIC, last three-year median: -0.5%

Chart: Earnings per share; fiscal year observations.

- FY2019: -$0.79

- FY2020: $0.46

- FY2021: -$4.21

- FY2022: $0.52

- FY2023: $0.41

- FY2024: -$0.04

- FY2025: -$1.37

### accounting: pass

- Sloan accruals: -16.8%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 7.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.73×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -3.6%

- FY2020: -4.1%

- FY2021: -28.3%

- FY2022: 5.4%

- FY2023: 2.9%

- FY2024: -8.0%

- FY2025: -16.8%

## Holders

- [Chuck Akre](https://gigainvestors.com/AC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Wallace Weitz](https://gigainvestors.com/WIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 23% since Jun 2026 · sales +16%

Story as of 2026-10-16T09:59:26.634Z; price observation 2026-10-15.

Price needs cash profits to grow 23.8% a year for ten years

- 2025-11-17: Perimeter Solutions (PRM): Evaluating Valuation After Fire Protection Expansion and Enhanced Sector Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/perimeter-solutions-prm-evaluating-valuation-170904737.html))

- 2026-06-25: PRM Stock Outlook as New Fire Contracts Improve Earnings Visibility ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/prm-stock-outlook-fire-contracts-123600416.html))

### Sales · FY2025–2026

sales +16%; source https://www.sec.gov/Archives/edgar/data/1880319/000188031926000013/prm-20251231.htm; observed 2026-02-26.

- FY2019: $239M 

- FY2020: $340M 

- FY2021: $362M 

- FY2022: $361M 

- FY2023: $322M 

- FY2024: $561M 

- FY2025: $653M 

- FY2026: $757M 

### Gross margin · FY2025

gross margin 57.5%; source https://www.sec.gov/Archives/edgar/data/1880319/000188031926000013/prm-20251231.htm; observed 2026-02-26.

- FY2019: 35.1% 

- FY2020: 47.7% 

- FY2021: 47.6% 

- FY2022: 35.7% 

- FY2023: 39.8% 

- FY2024: 56.5% 

- FY2025: 57.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are USD 652.9 million.

- Source: https://www.sec.gov/Archives/edgar/data/1880319/000188031926000013/prm-20251231.htm (filed 2026-02-26); FY2025: revenue 652862000; grossProfit 375150000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PRM.US: Perimeter Solutions, Inc. manufactures and supplies firefighting products, electronic components, lubricant additives, and engineered machinery in the United States, Germany, and internationally. It operates in two segments, Fire Safety and Specialty Products. The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services for federal, state, provincial, local/municipal, and commercial customers. The Specialty Products segment develops, produces, and markets products for non-fire safety markets, including phosphorus pentasulfide based lubricant additives used in pesticide and mining chemicals applications, and electric battery technologies. This segment also offers engineered machinery and associated aftermarket consumables parts, and services, as well as original equipment manufacturing, and automation solutions for medical devices such as complex catheters, guidewires and microcoils, as well as aftermarket parts, services, and consumables. In addition, it also manufactures and installs fire and security alarm systems. The company was founded in 1963 and is headquartered in Clayton, Missouri.

### Why customers stay

Margins ranged from 39.8% to 57.5% during 2023–25; it lost 0.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 39.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 56.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1880319/000188031926000013/prm-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 57.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 7-year return on capital observations [[2019,-0.008962129468712873],[2020,0.10524138245284864],[2021,-0.7295900588620013],[2022,0.18458615302781473],[2023,0.125445600837278],[2024,-0.004823170563705112],[2025,-0.3533145771056796]]; median -0.004823170563705112. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 2 of 7 years; bought back USD 40.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 8859000; cash acquisitions 16314000; owner earnings 7129000. Growth capex plus acquisitions / owner earnings = 2.2883994950203395.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 7497000; cash acquisitions 1970000; owner earnings 74868999. Growth capex plus acquisitions / owner earnings = 0.026312626404955675.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 8613000; owner earnings 148940000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 9435000; owner earnings 122906000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 15531000; owner earnings 44282000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2019,12360000],[2020,0],[2021,60000000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1880319/000188031926000013/prm-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 40370000 USD.

### What the price says

The price assumes cash profits grow 23.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.33375769812709855. Price 27.3; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2021-11: $11.75 per share

- 2021-12: $13.89 per share

- 2022-01: $13.08 per share

- 2022-02: $12.47 per share

- 2022-03: $12.11 per share

- 2022-04: $10.16 per share

- 2022-05: $10.95 per share

- 2022-06: $10.84 per share

- 2022-07: $11.55 per share

- 2022-08: $9.75 per share

- 2022-09: $8.01 per share

- 2022-10: $7.99 per share

- 2022-11: $10.84 per share

- 2022-12: $9.14 per share

- 2023-01: $9.30 per share

- 2023-02: $8.56 per share

- 2023-03: $8.08 per share

- 2023-04: $7.48 per share

- 2023-05: $5.42 per share

- 2023-06: $6.15 per share

- 2023-07: $5.56 per share

- 2023-08: $5.91 per share

- 2023-09: $4.54 per share

- 2023-10: $3.20 per share

- 2023-11: $4.16 per share

- 2023-12: $4.60 per share

- 2024-01: $4.74 per share

- 2024-02: $6.08 per share

- 2024-03: $7.42 per share

- 2024-04: $7.00 per share

- 2024-05: $7.60 per share

- 2024-06: $7.83 per share

- 2024-07: $9.69 per share

- 2024-08: $11.71 per share

- 2024-09: $13.45 per share

- 2024-10: $13.28 per share

- 2024-11: $12.80 per share

- 2024-12: $12.78 per share

- 2025-01: $12.50 per share

- 2025-02: $10.58 per share

- 2025-03: $10.07 per share

- 2025-04: $10.13 per share

- 2025-05: $12.07 per share

- 2025-06: $13.92 per share

- 2025-07: $16.13 per share

- 2025-08: $22.39 per share

- 2025-09: $22.39 per share

- 2025-10: $23.51 per share

- 2025-11: $27.88 per share

- 2025-12: $27.53 per share

- 2026-01: $26.15 per share

- 2026-02: $23.48 per share

- 2026-03: $24.42 per share

- 2026-04: $30.30 per share

- 2026-05: $32.28 per share

- 2026-06: $35.65 per share

- 2026-07: $30.61 per share

- 2026-08: $30.50 per share

- 2026-09: $26.32 per share

- 2026-10: $27.30 per share

## Annual estimated value (USD per share)

- FY2023: low $4.94 per share, central $5.58 per share, high $6.44 per share

- FY2024: low $10.56 per share, central $11.84 per share, high $13.54 per share

- FY2025: low $5.83 per share, central $6.34 per share, high $7.03 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1880319/000188031926000013/prm-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.