Perimeter Group Inc. (PRM) stock analysis
Close on Nov 11, 2026Market cap $5.02BP/E 170.4Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak7 of 30 checks passed
Perimeter passes 7 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 2/6
- Past performance
- 3/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
Revenue growing 10%+ a year
Revenue grew 21.9% a year over the last three fiscal years.
Growing faster than the industry
Revenue grew 30.7% over the last twelve months; the Chemicals and Allied Products median is 0.1%.
Return on equity above the industry
Perimeter's return on equity of 4.6% is above the Chemicals and Allied Products median of -3.8%.
Net margin above its 5-year average
Net margin was 6.7% over the last twelve months, against a 5-year average of 3.4%.
What to watch
Margin of safety under 20%
The price is 233% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $30.67 is above our fair value estimate of $9.21.
Return on equity under 15%
Return on equity was 4.6% over the last twelve months and averaged -1.1% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 6.3%, below the 10% that usually covers the cost of capital.
Valuation0/6
P/E above its 5-year median
Perimeter's P/E of 170.4 is above its own 5-year median of 21.9.
P/E above the industry
Perimeter's P/E of 170.4 is above the Chemicals and Allied Products median of 25.2.
EV/EBITDA above its 5-year median
Perimeter's EV/EBITDA of 26.9 is above its 5-year median of 14.9.
P/B above the industry
Perimeter's price-to-book of 3.78 is above the Chemicals and Allied Products median of 2.86.
Trading above fair value
The share price of $30.67 is above our fair value estimate of $9.21.
Margin of safety under 20%
The price is 233% above fair value, so there is no margin of safety.
Growth2/6
Revenue growing 10%+ a year
Revenue grew 21.9% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 30.7% over the last twelve months; the Chemicals and Allied Products median is 0.1%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was 54.5% over the last twelve months, against 58.2% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 4.6% over the last twelve months and averaged -1.1% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 6.3%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Perimeter's return on equity of 4.6% is above the Chemicals and Allied Products median of -3.8%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 6.7% over the last twelve months, against a 5-year average of 3.4%.
Net margin above the industry
Perimeter's net margin of 6.7% is above the Chemicals and Allied Products median of -2.8%.
Financial health2/6
High debt
Debt is 91.1% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 236% five years ago to 91.1%.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 7.6% of total debt; we look for at least 20%.
Interest not well covered
Operating income covers interest expense 1.6 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 2.79 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.70; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Perimeter has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$9.21
The share price is 233% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 23.5× | 21.9× | 25.2× | $4.24 | 40% |
| EV/EBITDA | 14.4× | 14.9× | 14.0× | $13.38 | 35% |
| P/B | 2.2× | 1.6× | 2.9× | $17.99 | 10% |
| Earnings power | 11.0% cost of equity | – | – | $6.89 | 15% |
| Fair value | $9.21 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 21.9
- Chemicals and Allied Products median 25.2
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $35.17M
- Value traded per 1% price move
- $17.04M
Downside
Medium risk
- Typical loss in a bad month
- 17.9%
- Volatility (annualized)
- 50%
- Sharpe ratio, 1 year
- 0.30
- Beta to the S&P 500 (5Y)
- 1.22
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +16.4% | +21.9% | +14.0% | – | |
| Gross profit | +18.3% | +42.9% | +18.3% | – | |
| Free cash flow | +20.7% | – | +26.9% | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 8.8% | -18.0% | |
| Return on assets | – | – | -8.1% | |
| Current ratio | – | 4.04 | 3.22 | |
| Debt to equity | – | 2.36 | 0.59 | |
| Net debt to EBITDA | – | 5.13× | -2.70× | |
| Interest coverage | – | 1.7× | -5.1× | |
| Inventory turnover | – | – | 2.2× | |
| Capex to revenue | – | 2.2% | 4.5% | |
| Diluted shares | – | 53M | 150M |
Cash use needs five years of cash flow figures
Perimeter does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -31.6% | 0.26× | 2.21× | -18.0% |
| FY2024 | -1.1% | 0.24× | 2.05× | -0.5% |
| FY2023 | 21.0% | 0.13× | 2.08× | 5.9% |
| FY2022 | 25.5% | 0.14× | 2.27× | 8.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$206.37M
- Cash generatingOperating cash flow above zero$238.15M
- Return on assets improvedROA up on the prior year-0.3% → -8.5%
- Earnings backed by cashOperating cash flow above net income$238.15M vs -$206.37M
- Less leverageLong-term debt to assets fell27.6% → 25.2%
- Better liquidityCurrent ratio rose6.31 → 3.22
- No dilutionShare count did not rise146M → 150M
- Gross margin improvedGross margin up on the prior year56.52% → 57.46%
- More efficientAsset turnover rose0.24 → 0.27
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