Perimeter SolutionsPRM -1.76%45 Gross Margin % is 40.61% as of Mar. 2026, which is 7% below its 10-year median of 43.78. GuruFocus rates PRM with a GF Score™ of 45/100 and a GF Value™ of $17.74 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,564 Chemicals companies, Perimeter Solutions ranks better than 94.44% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Perimeter Solutions had a gross margin of 40.61% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Perimeter Solutions Gross Margin % Related Terms
Perimeter Solutions Gross Margin % Historical Data
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The historical data trend for Perimeter Solutions's Gross Margin % 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 Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Perimeter Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Perimeter Solutions's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Perimeter Solutions (PRM) has a Gross Margin % of 40.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Perimeter Solutions and its competitors. This is near median its historical median of 43.78. Over the past decade, Perimeter Solutions' Gross Margin % has ranged from 35.05 to 57.46. According to the industry distribution chart, Perimeter Solutions ranks #87 out of 1564 companies in the Chemicals industry, placing it in the top 5.6%.
Is Perimeter Solutions' Gross Margin % too high?
Perimeter Solutions' current Gross Margin % of 40.61% is near median its 10-year median of 43.78. Over the past 10 years, this metric has ranged from a low of 35.05 to a high of 57.46. The Chemicals industry median Gross Margin % is 23.38. Perimeter Solutions' value of 40.61% is 73.7% above this industry median. Based on the distribution chart, Perimeter Solutions ranks #87 out of 1564 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. 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' Gross Margin % compare to BCPC and SXT?
According to the Chemicals industry distribution chart, Perimeter Solutions ranks #87 out of 1564 companies for Gross Margin %. This places Perimeter Solutions in the top 6% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.38. Perimeter Solutions' value of 40.61% is 73.7% above this benchmark. Historically, Perimeter Solutions' own Gross Margin % has ranged from 35.05 to 57.46 over the past decade. While the company's 10-year median is 43.78 vs. the industry median of 23.38, 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 Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.38, based on 1,564 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Perimeter Solutions's current Gross Margin % of 40.61% is 73.7% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Perimeter Solutions and its competitors. For the Chemicals industry, the median Gross Margin % is 23.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perimeter Solutions's current Gross Margin % is 40.61%, which is near median its own 10-year median of 43.78. 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 $17.74, compared to a current price of $35.18 — trading 98.3% above its estimated fair value. The current Gross Margin % is 40.61%, which is near median its 10-year median of 43.78 and 73.7% above the Chemicals industry median of 23.38. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Perimeter Solutions (PRM), the current Gross Margin % is 40.61% 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 $35.18 is trading 98.3% above its estimated GF Value™ of $17.74.
GuruFocus considers Perimeter Solutions to be Significantly Overvalued.
Key valuation signals for PRM:
Gross Margin %: 40.61% (near median its 10-year median of 43.78)
GF Value™: $17.74 vs. price of $35.18 (98.3% above fair value)
Industry Position: 73.7% above the Chemicals median (#87 of 1564)
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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