Perimeter SolutionsPRM -2.19%45 Cash Ratio is 0.71 as of Mar. 2026, which is 41% below its 10-year median of 1.21. GuruFocus rates PRM with a GF Score™ of 45/100 and a GF Value™ of $17.89 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,581 Chemicals companies, Perimeter Solutions ranks better than 60.28% on this metric.
Perimeter Solutions has a Cash Ratio of 0.71. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Perimeter Solutions's Cash Ratio or its related term are showing as below:
PRM'
s Cash Ratio Range Over the Past 10 Years
Min: 0.06 Med: 1.21 Max: 3.18
Current: 0.71
During the past 7 years, Perimeter Solutions's highest Cash Ratio was 3.18. The lowest was 0.06. And the median was 1.21.
PRM's Cash Ratio is ranked better than 60.28% of 1581
companies
in the Chemicals industry
Industry Median: 0.5
vs PRM: 0.71
Perimeter Solutions (NYSE:PRM) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Perimeter Solutions Cash Ratio Related Terms
Perimeter Solutions Cash Ratio Historical Data
* Premium members only.
The historical data trend for Perimeter Solutions's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Chemicals subindustry, Perimeter Solutions's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Perimeter Solutions Cash Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Perimeter Solutions's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Perimeter Solutions's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Perimeter Solutions (PRM) has a Cash Ratio of 0.71 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Perimeter Solutions and its competitors. This is 41% below median its historical median of 1.21. Over the past decade, Perimeter Solutions' Cash Ratio has ranged from 0.06 to 3.18. According to the industry distribution chart, Perimeter Solutions ranks #628 out of 1581 companies in the Chemicals industry, placing it in the top 39.7%.
Is Perimeter Solutions' Cash Ratio too high?
Perimeter Solutions' current Cash Ratio of 0.71 is 41% below median its 10-year median of 1.21. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 3.18. The Chemicals industry median Cash Ratio is 0.50. Perimeter Solutions' value of 0.71 is 42% above this industry median. Based on the distribution chart, Perimeter Solutions ranks #628 out of 1581 companies in the Chemicals industry, which is above the industry midpoint. Overall, Perimeter Solutions has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Perimeter Solutions' Cash Ratio compare to BCPC and SXT?
According to the Chemicals industry distribution chart, Perimeter Solutions ranks #628 out of 1581 companies for Cash Ratio. This puts Perimeter Solutions in the upper half of its industry. The industry median Cash Ratio is 0.50. Perimeter Solutions' value of 0.71 is 42% above this benchmark. Historically, Perimeter Solutions' own Cash Ratio has ranged from 0.06 to 3.18 over the past decade. While the company's 10-year median is 1.21 vs. the industry median of 0.50, Perimeter Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Chemicals company?
The median Cash Ratio among Chemicals companies is 0.50, based on 1,581 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Perimeter Solutions's current Cash Ratio of 0.71 is 42% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Perimeter Solutions and its competitors. For the Chemicals industry, the median Cash Ratio is 0.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perimeter Solutions's current Cash Ratio is 0.71, which is 41% below median its own 10-year median of 1.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perimeter Solutions stock overvalued right now?
Based on GuruFocus' analysis, Perimeter Solutions (PRM) is currently considered Significantly Overvalued. The stock's GF Value™ is $17.89, compared to a current price of $34.32 — trading 91.8% above its estimated fair value. The current Cash Ratio is 0.71, which is 41% below median its 10-year median of 1.21 and 42% above the Chemicals industry median of 0.50. Perimeter Solutions' overall GF Score™ is 45/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Perimeter Solutions (PRM), the current Cash Ratio is 0.71 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Perimeter Solutions (PRM) Overvalued in 2026?
Based on GuruFocus' analysis, Perimeter Solutions stock appears to be overvalued.
The current stock price of $34.32 is trading 91.8% above its estimated GF Value™ of $17.89.
GuruFocus considers Perimeter Solutions to be Significantly Overvalued.
Key valuation signals for PRM:
Cash Ratio: 0.71 (41% below median its 10-year median of 1.21)
GF Value™: $17.89 vs. price of $34.32 (91.8% above fair value)
Industry Position: 42% above the Chemicals median (#628 of 1581)
No single metric tells the full story. See the PRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perimeter Solutions Inc is a solutions provider for the Fire Safety and Specialty Products industries. The company's products and operations are managed and reported in two operating segments. Its Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services typically offered in conjunction with the company's retardant and foam products. The Specialty Products segment develops, produces, and markets phosphorus pentasulfide (P2S5)-based products used in lubricant additives, as well as in pesticide, mining chemical, and battery applications.
45GF Score
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