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Perimeter Solutions Inc

Perimeter Solutions Inc

PRM
$34.42USD↓-1.23%-0.43 today

MARKET CAP

5.6B

P/E (TTM)

25.1x

FWD P/E

19.3x

DAY RANGE

$34 – $36

52W RANGE

$15
$38

AI Summary

Stalk
Sell NowMedium

PRM sits in Stage 3 Distribution within a longer-term uptrend. Medium-term structure shows repeated failures at the flattened 9 and 21 EMAs and heavy down-volume on distribution days, signaling supply dominance. Short-term price has just been rejected at the EMAs, offering a tactical entry for bearish execution. Given the bearish medium-term bias, we will sell now into EMA resistance.

  • ↑Q1 2026 net sales rose 74% YoY to $125.1M; adjusted EBITDA more than doubled to $41.2M.
  • ↑Five-year U.S. DLA deal worth $500M adds ~$50M annual revenue from 2027.
  • ↓Prolonged Sarge facility downtime disrupted output and pressured earnings.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Perimeter Solutions Inc. (NYSE: PRM) is a leading provider in the fire safety and specialty products sector, particularly known for creating fire retardants and suppressants. The company's focus on operational efficiency, innovation, and the integration of strategic acquisitions positions it prominently within its industry. Recently, Perimeter has transitioned towards a more predictable business model with less dependence on seasonal fire activity, bolstered by growing government contracts that drive consistent revenue streams and distinct competitive advantages.

Bull says

  • ↑Q1 2026 net sales rose 74% YoY to $125.1M; adjusted EBITDA more than doubled to $41.2M.
  • ↑Five-year U.S. DLA deal worth $500M adds ~$50M annual revenue from 2027.
  • ↑Analysts forecast 21.9% earnings growth for fiscal year on upgrades.
  • ↑CapEx guidance of $30–40M annually supports new 110k sq ft plant expansion.
  • ↑Strong growth and momentum factors, stable earnings yield, and low leverage.
  • ↑Institutional hedge fund ownership signals positive market sentiment.

Bear says

  • ↓Prolonged Sarge facility downtime disrupted output and pressured earnings.
  • ↓Material financial quality weaknesses undermine stability and investor trust.
  • ↓Profitability conversion remains weak, raising concerns over margin sustainability.
  • ↓Dividend yield challenges indicate limited free cash flow for payouts.
  • ↓High share price volatility and small market size increase investment risk.
  • ↓Seasonal wildfire demand and macro factors may reduce revenue visibility.

Investment themes with PRM

Specialty Chemical↑ +0.35%

ECL · ALB · IFF

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-08-2026bullish

Transcript signals

Bull points

  • We're pleased to report a strong start to 2026 with first quarter adjusted EBDA of 41.2 million, reflecting both organic and acquired growth.
  • This predictability is driven by three things. Number one, new and improved contracting structures in both our retardant and suppressant businesses. Two, diversification within our fire safety segment due primarily to the growth in our suppressants and international retardant businesses. And three, organic and M&A-driven growth in our specialty product segment.
  • Our Q1 fire safety results are a direct reflection of the two themes I highlighted in my opening. The successful implementation of our operational value drivers and the durability and predictability of our earnings.

Bear points

  • The first quarter of 2026 was the most challenging period of operational performance in the history of our Sauge, Illinois facility. the plant experienced substantial unplanned downtime. This disruption is the direct result of a sustained failure to provide the resources, personnel, and operational discipline required to run the facility safely and reliably, a failure that has persisted ever since One Rock Capital acquired Flexis.
  • We are pursuing all available legal avenues to enforce our contractual rights. We have a proven track record of operating P2S5 facilities safely and reliably. And we are confident that upon assuming control of Sarge, we will restore operating discipline, safety standards, and production consistency for the benefit of the facility, its workers, and our customers.
Read full transcript analysis ›