PRM (Perimeter Solutions) Gross Margin % : 48.58% (As of Dec. 2024)

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What is Perimeter Solutions Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Perimeter Solutions's Gross Profit for the three months ended in Dec. 2024 was $41.9 Mil. Perimeter Solutions's Revenue for the three months ended in Dec. 2024 was $86.2 Mil. Therefore, Perimeter Solutions's Gross Margin % for the quarter that ended in Dec. 2024 was 48.58%.

The historical rank and industry rank for Perimeter Solutions's Gross Margin % or its related term are showing as below:

PRM' s Gross Margin % Range Over the Past 10 Years
Min: 35.05 Med: 39.83 Max: 56.53
Current: 56.53

During the past 6 years, the highest Gross Margin % of Perimeter Solutions was 56.53%. The lowest was 35.05%. And the median was 39.83%.

PRM's Gross Margin % is ranked better than
95.58% of 1516 companies
in the Chemicals industry
Industry Median: 22.185 vs PRM: 56.53

Perimeter Solutions had a gross margin of 48.58% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Perimeter Solutions was 0.00% per year.

Perimeter Solutions Gross Margin % Historical Data

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.

* Premium members only.

Perimeter Solutions Gross Margin % Chart

Perimeter Solutions Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Gross Margin %

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47.72

35.69

39.83

56.52

Perimeter Solutions Quarterly Data
	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Gross Margin %	Get a 7-Day Free Trial														31.52	35.06	57.57	62.83	48.58

Competitive Comparison of Perimeter Solutions's Gross Margin %

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's Gross Margin % Distribution in the 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.

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Perimeter Solutions Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Perimeter Solutions's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )	=	Gross Profit (A: Dec. 2024 )	/	Revenue (A: Dec. 2024 )
	=	317.1	/	560.968
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(560.968 - 243.882)	/	560.968
	=	56.52 %

Perimeter Solutions's Gross Margin for the quarter that ended in Dec. 2024 is calculated as

Gross Margin % (Q: Dec. 2024 )	=	Gross Profit (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	41.9	/	86.231
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(86.231 - 44.336)	/	86.231
	=	48.58 %

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 (NYSE:PRM) Gross Margin % Explanation

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 48.58% for the quarter that ended in Dec. 2024 => 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

Thank you for viewing the detailed overview of Perimeter Solutions's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Perimeter Solutions Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Perimeter Solutions Inc (NYSE:PRM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

I2T:Germany

Address

8000 Maryland Avenue, Suite 350, Clayton, MO, USA, 63105

Website

https://www.perimeter-solutions.com

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 includes operations that develop, produce and market products for non-fire safety markets. Specialty Products segment is Phosphorus Pentasulfide (P2S5) based lubricant additives. P2S5 is also used in pesticide and mining chemicals applications, and emerging electric battery technologies.

Executives

Vivek Raj	director, officer: Chief Financial Officer	1000 LOUISIANA STREET, SUITE 3850, HOUSTON TX 77002
Tracy Britt Cool	director	C/O BERKSHIRE HATHAWAY INC., 3555 FARNAM STREET, OMAHA NE 68131
Khouri Haitham	director, officer: Chief Executive Officer	C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Windacre Partnership Master Fund, Lp	10 percent owner	2200 POST OAK BLVD., SUITE 1580, HOUSTON TX 77056
Charles W. Kropp	officer: Chief Financial Officer	C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Jeffrey Emery	officer: President - Global Fire Safety	C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Iversen Bernt G Ii	director	CHAMPION AEROSPACE INC, 1230 OLD NORRIS ROAD, LIBERTY SC 29657
Kevin M Stein	director	TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Windacre Partnership Llc	10 percent owner	2200 POST OAK BOULEVARD, SUITE 1580, HOUSTON TX 77056
Snehal Amin	10 percent owner	2200 POST OAK BLVD., SUITE 1580, HOU TX 77056
Sean P Hennessy	director	C/O THE SHERWIN WILLIAMS CO, 101 PROSPECT AVE NW, CLEVELAND OH 44115
Kremling Ernest C. Ii	officer: Chief Operating Officer	9555 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 600, HOUSTON TX 77099
Noriko Yokozuka	officer: General Counsel	C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Stephen Cornwall	officer: Chief Commercial Officer	C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Shannon Horn	officer: Business Director	C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000