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
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 26, 2026
Perimeter Solutions, SA (PRM) Stock Analysis
Sector Rotation edge
Basic Materials · Specialty Chemicals
Sell if holding. Engine safety override at $28.75: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10 and A.R:R 1.9:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 4.25; Below-average business quality; Below long-term trend.
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 $28.75: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10 and A.R:R 1.9:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 4.25; Below-average business quality; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.9/10, moderate confidence.
Passes 7/8 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on earnings proximity 7d<=7d. Suitability: aggressive.
Recent developments
updated 2026-10-28Recent 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 2026-10-28T11:43:56Z.
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. How we score · Editorial policy
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Rating Breakdown
3 floor-breakers·1 ceiling hit
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.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 $28.75: Quality below floor (3.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10 and A.R:R 1.9:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 4.25; Below-average business quality; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $26.83. Score 5.9/10, moderate confidence.
Analyst target: $35.27 (+22.7% upside). Prior stop was $26.83. Stop-loss: $26.83.
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 15.7). TrendMatrix value score: 7.2/10. Verdict: Sell.
9 analysts cover PRM with a consensus score of 3.9/5. Average price target: $42.
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.