Examining Perimeter Solutions SA’s Stock Return on Shareholders’ Capital
December 28, 2023
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Investors and shareholders of Perimeter Solutions ($NYSE:PRM) SA are interested in understanding the return on shareholders’ capital the company’s stock provides. PERIMETER SOLUTIONS is a multi-national company that produces and distributes innovative chemical solutions for the protection of delicate materials, such as food products, from pests and diseases. Their goal is to provide safe, sustainable, and cost-effective solutions to their customers. The ROE is the ratio of net income divided by equity, taking into account both debt and equity.
It is a measure of how much profit a company generates compared to the amount of equity its shareholders have invested. By examining its financial statements, investors and shareholders can assess the return on shareholders’ capital of Perimeter Solutions SA Stock. Ultimately, this will help them make an informed decision about whether or not to invest in the company’s stock.
Stock Price
Wednesday marked an incremental increase for PERIMETER SOLUTIONS SA’s shareholders’ capital when the company’s stock opened at $4.6 and closed at the same price at the end of the day. This constituted a 0.2% growth from its prior closing price of $4.6. At this rate, PERIMETER SOLUTIONS is continuing to make steady progress in terms of providing returns on shareholders’ capital. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Perimeter Solutions. More…
| Total Revenues | Net Income | Net Margin |
| 303.93 | 20.37 | 14.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Perimeter Solutions. More…
| Operations | Investing | Financing |
| -7.22 | -9.22 | -79.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Perimeter Solutions. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.36k | 1.18k | 7.71 |
Key Ratios Snapshot
Some of the financial key ratios for Perimeter Solutions are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.6% | – | 18.0% |
| FCF Margin | ROE | ROA |
| -5.4% | 2.9% | 1.4% |
Analysis
At GoodWhale, we conducted an analysis of PERIMETER SOLUTIONS‘ financials. The Star Chart showed that the company was strong in liquidity, medium in profitability and weak in asset, dividend, and growth. We determined that PERIMETER SOLUTIONS was classified as a ‘sloth’, meaning that it achieved revenue or earnings growth slower than that of the overall economy. Given this information, investors may be interested in PERIMETER SOLUTIONS as a steady, low-risk investment option. The company has an intermediate health score of 6/10 when considering its cashflows and debt, indicating that it is likely to sustain future operations even during times of crisis. More…
Peers
Graphene is a material that is made up of carbon atoms that are arranged in a hexagonal lattice. The company has a lot of experience in the production of graphene and has been able to produce it in large quantities. The company has a lot of experience in the production of graphene and has been able to produce it in large quantities. The company’s main competitors are Directa Plus PLC, Anshan Hifichem Co Ltd, and Shenzhen Cotran New Material Co Ltd.
– Directa Plus PLC ($LSE:DCTA)
Directa Plus PLC is a UK-based manufacturer and supplier of graphene and other nanomaterials. The company has a market capitalization of £56.48 million as of 2022 and a return on equity of -20.11%. Directa Plus PLC’s products are used in a variety of applications, including energy, electronics, and healthcare. The company has a strong research and development team that is constantly innovating new uses for graphene and other nanomaterials. Directa Plus PLC is a publicly traded company listed on the London Stock Exchange.
– Anshan Hifichem Co Ltd ($SZSE:300758)
Anshan Hifichem Co Ltd is a company that produces and sells chemicals. The company has a market cap of 4.86B as of 2022 and a return on equity of 3.54%. The company’s products are used in a variety of industries, including agriculture, automotive, construction, and healthcare.
– Shenzhen Cotran New Material Co Ltd ($SZSE:300731)
Shenzhen Cotran New Material Co Ltd is a Chinese company that manufactures and sells a variety of chemical products. The company has a market cap of 2.42B as of 2022 and a Return on Equity of -8.09%. The company’s products include a range of chemicals used in the textile, plastics, and electronics industries.
Summary
Perimeter Solutions SA is a publically traded Swiss company which primarily provides service solutions and products related to safety, security, and infrastructure. Investors interested in the stock can take advantage of the company’s consistent financial performance, strong fundamentals, and solid returns on shareholders’ capital. Its performance is supported by an experienced management team, efficient utilization of capital, and a well-diversified product portfolio. Its stock has seen a consistent increase in both earnings and dividends over the years, offering a steady and reliable return. Its balance sheet is also healthy with low debt-to-equity ratio indicating a sound debt management system.
Additionally, its cash flow position remains strong which provides a steady dividend payout to shareholders. Overall, Perimeter Solutions SA is an attractive investment opportunity for long-term investors.
