Perimeter Solutions achieved 74% year-over-year revenue growth with a 4-for-4 earnings beat record, but the stock at $36.36 has exceeded its price target and is burning cash at a rate equal to 23% of revenue, creating a quality floor concern that offsets the strong top-line momentum.
Thesis pillars
- Target Exhausted Overbought↓Deteriorating
- Exceptional Revenue Growth Beat Streak→Stable
- Cash Burn Quality Floor Breach→Stable
- +1 more pillar — see the Why tab for full reasoning
Perimeter Solutions, SA (PRM) Stock Analysis
Basic Materials · Specialty Chemicals
Sell if holding. Engine safety override at $30.54: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 2.3:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 19.00; Below-average business quality; Negative price momentum.
Perimeter Solutions produces fire retardants, fire suppressants, and related equipment and services (Fire Safety segment) and phosphorus pentasulfide-based lubricant additives plus electronic components (Specialty Products segment), generating roughly 76% of annual revenues in... Read more
Sell if holding. Engine safety override at $30.54: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 2.3:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 19.00; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.6/10, moderate confidence.
Passes 6/8 gates (favorable risk/reward ratio, no SEC red flags, news events none recent, earnings proximity 61d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and clean insider activity. Suitability: aggressive.
Recent developments
updated 2026-08-29Recent Developments — Perimeter Solutions, SA
Latest news
- NEWS Perimeter Solutions Inc (PRM) Valuation: PE, PB & Fair Value Analysis - TradingKey — TradingKey neutral
- NEWS Perimeter Solutions Inc (PRM) Institutional Confidence - TradingKey — TradingKey neutral
- NEWS Perimeter Solutions Inc (PRM) Technical Analysis: Support, Resistance, Indicators & Moving Averages - TradingKey — TradingKey neutral
- NEWS PRM Investors Have Opportunity to Join Perimeter Solutions, Inc. Fraud Investigation with the Schall Law Firm - GlobeNew — GlobeNewswire negative
- NEWS Perimeter Solutions, Inc. 2026 Q1 - Results - Earnings Call Presentation (NYSE:PRM) 2026-05-06 - Seeking Alpha — Seeking Alpha neutral
Generated 2026-08-29T09:07:28Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerUSDA Forest Service32%10-K Item 1: 'our two largest customers, the USDA Forest Service and the U.S. Bureau of Land Management accounted for 32% and 11%, respectively, of our consolidated revenues'
- LOWCustomerU.S. Bureau of Land Management11%10-K Item 1: 'our two largest customers, the USDA Forest Service and the U.S. Bureau of Land Management accounted for 32% and 11%, respectively, of our consolidated revenues'
- MEDIUMCustomerstate of California10-K Item 1A: 'We are dependent on sales to the USDA Forest Service...and the state of California, which account for a substantial portion of our revenue related to our Fire Safety segment'
- HIGHGeographicUnited States76%10-K Item 1: 'approximately 76% of our annual revenues derived in the United States'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers·1 ceiling hit
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Cyclical trough — margins compressed or negative. Profitability typically recovers with the cycle, but floor fires on current data.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $30.54: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.6/10 and A.R:R 2.3:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 19.00; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $28.48. Score 5.6/10, moderate confidence.
Take-profit target: $37.19 (+21.4% upside). Prior stop was $28.48. Stop-loss: $28.48.
Concentration risk — Geographic: United States (76.0%); Quality below floor (3.3 < 4.0).
Perimeter Solutions, SA trades at a P/E of N/A (forward 17.5). TrendMatrix value score: 6.9/10. Verdict: Sell.
9 analysts cover PRM with a consensus score of 3.9/5. Average price target: $44.
What does Perimeter Solutions, SA do?Perimeter Solutions produces fire retardants, fire suppressants, and related equipment and services (Fire Safety...
Perimeter Solutions produces fire retardants, fire suppressants, and related equipment and services (Fire Safety segment) and phosphorus pentasulfide-based lubricant additives plus electronic components (Specialty Products segment), generating roughly 76% of annual revenues in the United States. The USDA Forest Service and U.S. Bureau of Land Management together accounted for 43% of 2025 consolidated revenues, covered by a five-year agreement signed in September 2025.