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PRM

BEARISH
$30.47 Live
Perimeter Solutions, Inc. · NYSE
Target $32.5 (+6.7%)
$10.23 52W Range $31.92

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
PRM exhibits a severe divergence between its market price and fundamental health, highlighted by a weak Piotroski F-Score of 2/9. While the stock has seen a massive 198% one-year price surge and strong revenue growth of 19.2%, the underlying financials are distressed with an operating margin of -160.74% and negative ROE. The valuation is aggressively stretched with a Price/Sales ratio of 7.61, which is unsustainable for a company with negative profit margins. Combined with bearish insider selling and a failing deterministic health scorecard, the current price appears to be driven by speculation rather than value.

Key Strengths

Strong top-line revenue growth (19.20% YoY)
Robust gross margins (57.46%) indicating product value
High liquidity with a Current Ratio of 3.22
Consistent history of beating earnings estimates
Strong short-term price momentum (1Y Change +198.1%)

Key Risks

Severe operational inefficiency (Operating Margin -160.74%)
Critical financial health weakness (Piotroski F-Score 2/9)
Extreme valuation premium (P/S 7.61) relative to profitability
Negative Return on Equity (-18.02%) and Return on Assets (-4.95%)
Aggressive insider selling totaling $22.16M

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Sector Comparison & Peer Analysis

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