Perimeter SolutionsPRM -1.76%45 ROA % is 10.03% as of Mar. 2026, which is 967% above its 10-year median of 0.94. 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 1,618 Chemicals companies, Perimeter Solutions ranks worse than 89.06% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Perimeter Solutions's annualizedNet Income for the quarter that ended in Mar. 2026 was $291.7 Mil.
Perimeter Solutions's average Total Assets over the quarter that ended in Mar. 2026 was $2,908.7 Mil. Therefore, Perimeter Solutions's annualized ROA % for the quarter that ended in Mar. 2026 was 10.03%.
The historical rank and industry rank for Perimeter Solutions's ROA % or its related term are showing as below:
PRM'
s ROA % Range Over the Past 10 Years
Min: -8.14 Med: 0.94 Max: 3.64
Current: -7.12
During the past 7 years, Perimeter Solutions's highest ROA % was 3.64%. The lowest was -8.14%. And the median was 0.94%.
PRM's ROA % is ranked worse than 89.06% of 1618
companies
in the Chemicals industry
Industry Median: 2.9
vs PRM: -7.12
Perimeter Solutions (NYSE:PRM) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Perimeter Solutions ROA % Related Terms
Perimeter Solutions ROA % Historical Data
* Premium members only.
The historical data trend for Perimeter Solutions's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Perimeter Solutions's ROA % distribution charts can be found below:
* The bar in red indicates where Perimeter Solutions's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Perimeter Solutions (PRM) has a ROA % of 10.03% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Perimeter Solutions and its competitors. This is 967% above median its historical median of 0.94. According to the industry distribution chart, Perimeter Solutions ranks #1441 out of 1618 companies in the Chemicals industry, placing it in the top 89.1%.
Is Perimeter Solutions' ROA % too high?
Perimeter Solutions' current ROA % of 10.03% is 967% above median its 10-year median of 0.94. The Chemicals industry median ROA % is 2.90. Perimeter Solutions' value of 10.03% is 245.9% above this industry median. Based on the distribution chart, Perimeter Solutions ranks #1441 out of 1618 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' ROA % compare to BCPC and SXT?
According to the Chemicals industry distribution chart, Perimeter Solutions ranks #1441 out of 1618 companies for ROA %. This places Perimeter Solutions in the lower half of its industry. The industry median ROA % is 2.90. Perimeter Solutions' value of 10.03% is 245.9% above this benchmark. While the company's 10-year median is 0.94 vs. the industry median of 2.90, 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 ROA % for a Chemicals company?
The median ROA % among Chemicals companies is 2.90, based on 1,618 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Perimeter Solutions's current ROA % of 10.03% is 245.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Perimeter Solutions and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perimeter Solutions's current ROA % is 10.03%, which is 967% above median its own 10-year median of 0.94. 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 ROA % is 10.03%, which is 967% above median its 10-year median of 0.94 and 245.9% above the Chemicals industry median of 2.90. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Perimeter Solutions (PRM), the current ROA % is 10.03% 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:
ROA %: 10.03% (967% above median its 10-year median of 0.94)
GF Value™: $17.74 vs. price of $35.18 (98.3% above fair value)
Industry Position: 245.9% above the Chemicals median (#1441 of 1618)
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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