| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 300.66 | 1050 |
| Intrinsic value (DCF) | 4.48 | -83 |
| Graham-Dodd Method | 0.64 | -98 |
| Graham Formula | n/a |
Perimeter Solutions, SA (NYSE: PRM) is a leading global manufacturer and supplier of firefighting products and lubricant additives, operating in two key segments: Fire Safety and Oil Additives. The company's Fire Safety segment provides high-performance fire retardants, foams, and specialized equipment under well-known brands like PHOS-CHEK, FIRE-TROL, and SOLBERG, serving federal, state, and commercial clients. Its Oil Additives segment produces Phosphorus Pentasulfide, a critical component in lubricant additives such as Zinc Dialkyldithiophosphates. Headquartered in Clayton, Missouri, Perimeter Solutions has built a strong reputation since its founding in 1963, leveraging innovation and sustainability in fire suppression and industrial lubrication. With operations spanning the U.S., Germany, and international markets, the company plays a vital role in the specialty chemicals sector, addressing critical safety and performance needs across industries.
Perimeter Solutions presents a mixed investment profile. The company operates in niche markets with high barriers to entry, particularly in fire safety, where its PHOS-CHEK brand is a market leader. However, its financials show challenges, including negative net income (-$5.9M) and diluted EPS (-$0.04) in the latest fiscal year. Positives include solid operating cash flow ($188.4M) and a manageable debt load ($21.6M). The stock's high beta (1.88) suggests volatility, likely tied to cyclical demand in its end markets. Investors may be attracted to its specialized product portfolio and long-term contracts with government agencies, but profitability concerns and exposure to raw material costs warrant caution.
Perimeter Solutions holds a strong competitive position in fire retardants and lubricant additives, driven by its proprietary technologies and established brands. In Fire Safety, its PHOS-CHEK products are industry standards for aerial firefighting, giving it pricing power and customer loyalty. The segment benefits from regulatory tailwinds as wildfires increase globally. However, competition is intensifying with smaller players offering eco-friendly alternatives. In Oil Additives, the company's focus on Phosphorus Pentasulfide provides a narrow but defensible niche, though it faces pressure from larger chemical conglomerates with broader R&D budgets. A key advantage is its dual-segment diversification, which mitigates sector-specific risks. Weaknesses include reliance on government contracts (subject to budgetary cycles) and limited scale versus multinational competitors. Its ~$1.7B market cap positions it as a mid-tier player, requiring innovation to maintain margins amid input cost inflation.