Perimeter SolutionsPRM -2.11%45 Return-on-Tangible-Asset is 47.15% as of Mar. 2026, which is 670% above its 10-year median of 6.12. GuruFocus rates PRM with a GF Score™ of 45/100 and a GF Value™ of $17.83 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,613 Chemicals companies, Perimeter Solutions ranks worse than 95.97% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Perimeter Solutions's annualizedNet Income for the quarter that ended in Mar. 2026 was $291.7 Mil. Perimeter Solutions's average total tangible assets for the quarter that ended in Mar. 2026 was $618.7 Mil. Therefore, Perimeter Solutions's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 47.15%.
The historical rank and industry rank for Perimeter Solutions's Return-on-Tangible-Asset or its related term are showing as below:
PRM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -35.22 Med: 6.12 Max: 22.27
Current: -32.17
During the past 7 years, Perimeter Solutions's highest Return-on-Tangible-Asset was 22.27%. The lowest was -35.22%. And the median was 6.12%.
PRM's Return-on-Tangible-Asset is ranked worse than 95.97% of 1613
companies
in the Chemicals industry
Industry Median: 3.05
vs PRM: -32.17
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Perimeter Solutions Return-on-Tangible-Asset Related Terms
Perimeter Solutions Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Perimeter Solutions's Return-on-Tangible-Asset 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.
PRM vs BCPC, SXT, CBT: Return-on-Tangible-Asset Comparison
For the Specialty Chemicals subindustry, Perimeter Solutions's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Perimeter Solutions's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Perimeter Solutions's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 47.15% mean?
Perimeter Solutions (PRM) has a Return-on-Tangible-Asset of 47.15% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Perimeter Solutions and its competitors. This is 670% above median its historical median of 6.12. According to the industry distribution chart, Perimeter Solutions ranks #1548 out of 1613 companies in the Chemicals industry, placing it in the top 96%.
Is Perimeter Solutions' Return-on-Tangible-Asset too high?
Perimeter Solutions' current Return-on-Tangible-Asset of 47.15% is 670% above median its 10-year median of 6.12. The Chemicals industry median Return-on-Tangible-Asset is 3.05. Perimeter Solutions' value of 47.15% is 1445.9% above this industry median. Based on the distribution chart, Perimeter Solutions ranks #1548 out of 1613 companies in the Chemicals industry, which is in the bottom quartile 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' Return-on-Tangible-Asset compare to BCPC and SXT?
According to the Chemicals industry distribution chart, Perimeter Solutions ranks #1548 out of 1613 companies for Return-on-Tangible-Asset. This places Perimeter Solutions in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.05. Perimeter Solutions' value of 47.15% is 1445.9% above this benchmark. While the company's 10-year median is 6.12 vs. the industry median of 3.05, 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 Return-on-Tangible-Asset for a Chemicals company?
The median Return-on-Tangible-Asset among Chemicals companies is 3.05, based on 1,613 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Perimeter Solutions's current Return-on-Tangible-Asset of 47.15% is 1445.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Perimeter Solutions and its competitors. For the Chemicals industry, the median Return-on-Tangible-Asset is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perimeter Solutions's current Return-on-Tangible-Asset is 47.15%, which is 670% above median its own 10-year median of 6.12. 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 $17.83, compared to a current price of $33.92 — trading 90.2% above its estimated fair value. The current Return-on-Tangible-Asset is 47.15%, which is 670% above median its 10-year median of 6.12 and 1445.9% above the Chemicals industry median of 3.05. Perimeter Solutions' overall GF Score™ is 45/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Perimeter Solutions (PRM), the current Return-on-Tangible-Asset is 47.15% 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 $33.92 is trading 90.2% above its estimated GF Value™ of $17.83.
GuruFocus considers Perimeter Solutions to be Significantly Overvalued.
Key valuation signals for PRM:
Return-on-Tangible-Asset: 47.15% (670% above median its 10-year median of 6.12)
GF Value™: $17.83 vs. price of $33.92 (90.2% above fair value)
Industry Position: 1445.9% above the Chemicals median (#1548 of 1613)
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
Get the complete analysis for PRM
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PRM has been successfully added to your 
