Perimeter Solutions SA Common Stock (PRM)

FairStock Score: 27/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with durable earnings and a conservative balance sheet. Perimeter has an understandable niche in fire safety, but the numbers are troubling. In fiscal 2025, the year ended 2025-12-31, revenue was $652.9 million but net income was a loss of $206.4 million, or -$1.37 per diluted share. The latest reported quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $213.8 million and a net loss of $181.6 million, or -$1.11 per diluted share, with a negative 84.95% margin. That follows fiscal 2023 net income of $67.5 million and a fiscal 2024 loss of $5.9 million, so profitability has collapsed. At the $27.50 close on 2026-10-13, FairStock's calculations show a negative P/E of -12.39, P/B of 4.41, ROE of -30.87%, ROCE of -8.13%, and debt-to-equity of 1.35. FairStock's Altman Z-Score of 0.75 and Piotroski F-Score of 4/9 suggest financial fragility. The positive is trailing free cash flow of $97.1 million, a 2.2% FCF yield, and revenue growth of 31.46%, but profit growth is -464.77%. The Lynch category is turnaround: a loss in the latest year after earlier profits. Turnarounds can pay off, but only if the losses are temporary. Here, P/B of 4.41 for a business with negative earnings gives me no obvious margin of safety. I would want evidence of durable profit and lower leverage before calling the price cheap.

In plain English: Perimeter Solutions makes firefighting products such as fire retardants and foams, plus specialty chemicals and equipment. The business looks weak right now: it lost a lot of money in the latest reported quarter and in the last full year, and it carries a lot of debt. At $27.50, the price looks expensive compared with its losses and accounting value, even though it does produce some cash.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer