📊 PRM Key Takeaways
Is Perimeter Solutions, Inc. (PRM) a Good Investment?
Despite impressive operating margins (58%) and revenue growth (16.4%), Perimeter Solutions is burning substantial cash with operating cash flow of -$89M and free cash flow of -$94.8M, indicating a critical disconnect between reported profitability and actual economic performance. The 3,325% YoY EPS decline combined with consistently negative cash generation suggests either significant working capital deterioration, accounting adjustments inflating net income, or underlying operational distress that fundamentals do not reflect.
Perimeter Solutions, Inc. Key Strengths (PRM)
- Strong revenue growth of 16.4% YoY demonstrates market demand
- Exceptional operating margin of 58% and net margin of 58.3% indicate efficient cost structure
- Excellent liquidity with current ratio of 3.09x and quick ratio of 1.61x provides short-term financial flexibility
PRM Stock Risks: Perimeter Solutions, Inc. Investment Risks
- Operating cash flow of -$89M starkly contradicts reported profitability, signaling unsustainable business model or major working capital drain
- Negative free cash flow of -$94.8M indicates company cannot self-fund operations and must rely on external financing
- EPS collapsed 3,325% YoY amid unclear circumstances; combined with N/A net income YoY change suggests accounting anomalies or major structural changes
- Low ROE of 6.1% and ROA of 2.3% despite high net margins indicate poor capital efficiency or asset utilization problems
- Cash position of only $91.6M against $1.2B long-term debt and $2B total liabilities leaves limited buffer
Key Metrics to Watch
- Operating cash flow trend - critical to determine if negative cash is structural or temporary working capital issue
- Cash balance depletion rate and funding sources - monitor if company must dilute equity or increase debt
- Working capital components - track accounts receivable, inventory, payables to identify root cause of cash burn
- EPS and share count changes - clarify the dramatic YoY EPS decline and any dilution events
Perimeter Solutions, Inc. (PRM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.09x current ratio provides a solid financial cushion.
PRM Profit Margin, ROE & Profitability Analysis
PRM vs Materials Sector: How Perimeter Solutions, Inc. Compares
How Perimeter Solutions, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Perimeter Solutions, Inc. Stock Overvalued? PRM Valuation Analysis 2026
Based on fundamental analysis, Perimeter Solutions, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Perimeter Solutions, Inc. Balance Sheet: PRM Debt, Cash & Liquidity
PRM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Perimeter Solutions, Inc.'s revenue has grown significantly by 91% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.41 reflects profitable operations.
PRM Revenue Growth, EPS Growth & YoY Performance
PRM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $72.0M | $56.7M | $0.36 |
| Q3 2025 | $288.4M | $21.7M | $-0.45 |
| Q2 2025 | $127.3M | $21.7M | $0.14 |
| Q1 2025 | $59.0M | $56.7M | $0.36 |
| Q3 2024 | $142.7M | $9.4M | $0.12 |
| Q2 2024 | $76.1M | $9.4M | $0.14 |
| Q1 2024 | $43.9M | $9.4M | $0.06 |
| Q3 2023 | $142.7M | $8.9M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Perimeter Solutions, Inc. Dividends, Buybacks & Capital Allocation
PRM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Perimeter Solutions, Inc. (CIK: 0001880319)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PRM
What is the AI rating for PRM?
Perimeter Solutions, Inc. (PRM) has an AI grade of C with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PRM's key strengths?
Claude: Strong revenue growth of 16.4% YoY demonstrates market demand. Exceptional operating margin of 58% and net margin of 58.3% indicate efficient cost structure.
What are the risks of investing in PRM?
Claude: Operating cash flow of -$89M starkly contradicts reported profitability, signaling unsustainable business model or major working capital drain. Negative free cash flow of -$94.8M indicates company cannot self-fund operations and must rely on external financing.
What is PRM's revenue and growth?
Perimeter Solutions, Inc. reported revenue of $125.1M.
Does PRM pay dividends?
Perimeter Solutions, Inc. does not currently pay dividends.
Where can I find PRM SEC filings?
Official SEC filings for Perimeter Solutions, Inc. (CIK: 0001880319) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PRM's EPS?
Perimeter Solutions, Inc. has a diluted EPS of $0.44.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PRM's fundamental grade?
Based on our AI fundamental analysis in May 2026, Perimeter Solutions, Inc. has a C grade with 65% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PRM stock overvalued or undervalued?
Valuation metrics for PRM: ROE of 6.1% (sector avg: 14%), net margin of 58.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is PRM's AI grade for 2026?
Our dual AI analysis gives Perimeter Solutions, Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PRM's free cash flow?
Perimeter Solutions, Inc.'s operating cash flow is $-89.0M, with capital expenditures of $5.8M. FCF margin is -75.8%.
How does PRM compare to other Materials stocks?
Vs Materials sector averages: Net margin 58.3% (avg: 10%), ROE 6.1% (avg: 14%), current ratio 3.09 (avg: 1.6).