PERIMETER SOLUTIONS INC (PRM) Stock Fundamental Analysis
NYSE:PRM - US71385M1071 - Common Stock
19.48 USD
+0.79 (+4.23%)
19.48 USD
0 (0%)
Taking everything into account, PRM scores 5 out of 10 in our fundamental rating. PRM was compared to 84 industry peers in the Chemicals industry. PRM has only an average score on both its financial health and profitability. PRM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PRM had negative earnings in the past year.
In the past year PRM had a positive cash flow from operations.
In multiple years PRM reported negative net income over the last 5 years.
PRM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.54%, PRM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
With a decent Return On Equity value of 10.96%, PRM is doing good in the industry, outperforming 77.38% of the companies in the same industry.
PRM's Return On Invested Capital of 5.05% is in line compared to the rest of the industry. PRM outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 10.96% | ||
| ROIC | 5.05% |
ROA(3y)2.14%
ROA(5y)-3.4%
ROE(3y)4.47%
ROE(5y)-7.84%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PRM's Profit Margin of 23.23% is amongst the best of the industry. PRM outperforms 100.00% of its industry peers.
Looking at the Operating Margin, with a value of 25.94%, PRM belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
The Gross Margin of PRM (56.54%) is better than 98.81% of its industry peers.
PRM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.94% | ||
| PM (TTM) | 23.23% | ||
| GM | 56.54% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.47%
GM growth 5Y10.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRM is destroying value.
Compared to 1 year ago, PRM has more shares outstanding
The number of shares outstanding for PRM has been reduced compared to 5 years ago.
Compared to 1 year ago, PRM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that PRM is in the distress zone and has some risk of bankruptcy.
PRM's Altman-Z score of 1.68 is in line compared to the rest of the industry. PRM outperforms 42.86% of its industry peers.
The Debt to FCF ratio of PRM is 4.14, which is a neutral value as it means it would take PRM, 4.14 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.14, PRM belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
PRM has a Debt/Equity ratio of 0.65. This is a neutral value indicating PRM is somewhat dependend on debt financing.
The Debt to Equity ratio of PRM (0.65) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.58
WACC8.67%
2.3 Liquidity
PRM has a Current Ratio of 5.23. This indicates that PRM is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.23, PRM belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
A Quick Ratio of 3.56 indicates that PRM has no problem at all paying its short term obligations.
The Quick ratio of PRM (3.56) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 70.00% over the past year.
The Revenue has grown by 74.16% in the past year. This is a very strong growth!
The Revenue has been growing by 18.58% on average over the past years. This is quite good.
EPS 1Y (TTM)70%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%178.57%
Revenue 1Y (TTM)74.16%
Revenue growth 3Y15.69%
Revenue growth 5Y18.58%
Sales Q2Q%27.78%
3.2 Future
The Earnings Per Share is expected to grow by 50.43% on average over the next years. This is a very strong growth
Based on estimates for the next years, PRM will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y210.43%
EPS Next 2Y80.39%
EPS Next 3Y50.43%
EPS Next 5YN/A
Revenue Next Year-0.32%
Revenue Next 2Y2.48%
Revenue Next 3Y3.27%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PRM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
PRM is valuated rather expensively with a Price/Forward Earnings ratio of 17.07.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRM is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, PRM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRM indicates a slightly more expensive valuation: PRM is more expensive than 63.10% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRM indicates a somewhat cheap valuation: PRM is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.1 | ||
| EV/EBITDA | 15.57 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PRM may justify a higher PE ratio.
A more expensive valuation may be justified as PRM's earnings are expected to grow with 50.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y80.39%
EPS Next 3Y50.43%
5. Dividend
5.1 Amount
No dividends for PRM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.48
+0.79 (+4.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.97%
Inst Owner Change3%
Ins Owners8.61%
Ins Owner Change4.76%
Market Cap2.85B
Analysts80
Price Target19.38 (-0.51%)
Short Float %3.3%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)206.27%
Min EPS beat(2)98.02%
Max EPS beat(2)314.52%
EPS beat(4)3
Avg EPS beat(4)260%
Min EPS beat(4)-196.63%
Max EPS beat(4)824.09%
EPS beat(8)6
Avg EPS beat(8)194.95%
EPS beat(12)9
Avg EPS beat(12)162.36%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.98%
Min Revenue beat(2)-4.91%
Max Revenue beat(2)10.87%
Revenue beat(4)2
Avg Revenue beat(4)12.23%
Min Revenue beat(4)-4.91%
Max Revenue beat(4)43.99%
Revenue beat(8)5
Avg Revenue beat(8)16.22%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)15.63%
PT rev (3m)15.63%
EPS NQ rev (1m)15.22%
EPS NQ rev (3m)12.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)32.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.07 | ||
| P/S | 5.01 | ||
| P/FCF | 15.1 | ||
| P/OCF | 13.75 | ||
| P/B | 2.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.57 |
EPS(TTM)-0.06
EYN/A
EPS(NY)1.14
Fwd EY5.86%
FCF(TTM)1.29
FCFY6.62%
OCF(TTM)1.42
OCFY7.27%
SpS3.89
BVpS8.23
TBVpS-4.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.54% | ||
| ROE | 10.96% | ||
| ROCE | 6.39% | ||
| ROIC | 5.05% | ||
| ROICexc | 5.52% | ||
| ROICexgc | 57.84% | ||
| OM | 25.94% | ||
| PM (TTM) | 23.23% | ||
| GM | 56.54% | ||
| FCFM | 33.2% |
ROA(3y)2.14%
ROA(5y)-3.4%
ROE(3y)4.47%
ROE(5y)-7.84%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.47%
GM growth 5Y10.02%
F-Score8
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.14 | ||
| Debt/EBITDA | 3.66 | ||
| Cap/Depr | 28.39% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 4.01 | ||
| Cash Conversion | 97.32% | ||
| Profit Quality | 142.91% | ||
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.56 | ||
| Altman-Z | 1.68 |
F-Score8
WACC8.67%
ROIC/WACC0.58
Cap/Depr(3y)17.09%
Cap/Depr(5y)16.01%
Cap/Sales(3y)2.7%
Cap/Sales(5y)2.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)70%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%178.57%
EPS Next Y210.43%
EPS Next 2Y80.39%
EPS Next 3Y50.43%
EPS Next 5YN/A
Revenue 1Y (TTM)74.16%
Revenue growth 3Y15.69%
Revenue growth 5Y18.58%
Sales Q2Q%27.78%
Revenue Next Year-0.32%
Revenue Next 2Y2.48%
Revenue Next 3Y3.27%
Revenue Next 5YN/A
EBIT growth 1Y214.02%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.48%
EBIT Next 3Y15.58%
EBIT Next 5YN/A
FCF growth 1Y1889.27%
FCF growth 3Y40.29%
FCF growth 5YN/A
OCF growth 1Y23622.2%
OCF growth 3Y37.57%
OCF growth 5YN/A