Perimeter SolutionsPRM -1.76%45 ROE % is 24.95% as of Mar. 2026, which is 828% above its 10-year median of 2.69. 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 1,590 Chemicals companies, Perimeter Solutions ranks worse than 90.06% on this metric.
The historical rank and industry rank for Perimeter Solutions's ROE % or its related term are showing as below:
PRM'
s ROE % Range Over the Past 10 Years
Min: -18.02 Med: 2.69 Max: 8.76
Current: -16.26
During the past 7 years, Perimeter Solutions's highest ROE % was 8.76%. The lowest was -18.02%. And the median was 2.69%.
PRM's ROE % is ranked worse than 90.06% of 1590
companies
in the Chemicals industry
Industry Median: 5.195
vs PRM: -16.26
Perimeter Solutions (NYSE:PRM) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Perimeter Solutions ROE % Related Terms
Perimeter Solutions ROE % Historical Data
* Premium members only.
The historical data trend for Perimeter Solutions's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Perimeter Solutions's ROE % distribution charts can be found below:
* The bar in red indicates where Perimeter Solutions's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Perimeter Solutions (PRM) has a ROE % of 24.95% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Perimeter Solutions and its competitors. This is 828% above median its historical median of 2.69. According to the industry distribution chart, Perimeter Solutions ranks #1432 out of 1590 companies in the Chemicals industry, placing it in the top 90.1%.
Is Perimeter Solutions' ROE % too high?
Perimeter Solutions' current ROE % of 24.95% is 828% above median its 10-year median of 2.69. The Chemicals industry median ROE % is 5.20. Perimeter Solutions' value of 24.95% is 380.3% above this industry median. Based on the distribution chart, Perimeter Solutions ranks #1432 out of 1590 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' ROE % compare to BCPC and SXT?
According to the Chemicals industry distribution chart, Perimeter Solutions ranks #1432 out of 1590 companies for ROE %. This places Perimeter Solutions in the lower half of its industry. The industry median ROE % is 5.20. Perimeter Solutions' value of 24.95% is 380.3% above this benchmark. While the company's 10-year median is 2.69 vs. the industry median of 5.20, 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 ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.20, based on 1,590 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Perimeter Solutions's current ROE % of 24.95% is 380.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Perimeter Solutions and its competitors. For the Chemicals industry, the median ROE % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perimeter Solutions's current ROE % is 24.95%, which is 828% above median its own 10-year median of 2.69. 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 ROE % is 24.95%, which is 828% above median its 10-year median of 2.69 and 380.3% above the Chemicals industry median of 5.20. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Perimeter Solutions (PRM), the current ROE % is 24.95% 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:
ROE %: 24.95% (828% above median its 10-year median of 2.69)
GF Value™: $17.74 vs. price of $35.18 (98.3% above fair value)
Industry Position: 380.3% above the Chemicals median (#1432 of 1590)
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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