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→Stable
- 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
Range Bound setup
Basic Materials · Specialty Chemicals
Sell if holding. Analyst target reached at $34.31 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: United States (76.0%).
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. Analyst target reached at $34.31 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: United States (76.0%). Chart setup: RSI 45 mid-range, Bollinger mid-band. Score 5.1/10, moderate confidence.
Passes 5/8 gates (no SEC red flags, news events none recent, earnings proximity 31d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-07-07Recent Developments — Perimeter Solutions, SA
Latest news
- 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
- NEWS Perimeter Solutions (NYSE: PRM) Q1 revenue surges 74% on MMT acquisition - Stock Titan — Stock Titan positive
- NEWS Earnings Flash (PRM) Perimeter Solutions, Inc. Reports Q1 Revenue $125.1M, vs. FactSet Est of $121.8M - marketscreener.c — marketscreener.com positive
- NEWS PERIMETER SOLUTIONS SA ($PRM) Releases Q1 2026 Earnings - Quiver Quantitative — Quiver Quantitative neutral
Generated 2026-07-07T11:31:44Z.
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.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
2 floor-breakers
Momentum 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
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $34.31 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: United States (76.0%). Chart setup: RSI 45 mid-range, Bollinger mid-band. Prior stop was $31.51. Score 5.1/10, moderate confidence.
Take-profit target: $34.57 (+2.0% upside). Prior stop was $31.51. Stop-loss: $31.51.
Concentration risk — Geographic: United States (76.0%); Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.1): -0.5.
Perimeter Solutions, SA trades at a P/E of N/A (forward 17.6). TrendMatrix value score: 6.0/10. Verdict: Sell.
8 analysts cover PRM with a consensus score of 3.9/5. Average price target: $41.
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.