In a remarkable display of market confidence, Perimeter Solutions (PRM) stock has reached a 52-week high, touching $12.9 amidst a flurry of trading activity. This peak represents a significant milestone for the company, reflecting a robust 1-year change of 153.09%. Investors have shown increasing enthusiasm for Perimeter Solutions, propelling the stock to new heights over the past year and underscoring the company's strong performance and potential for continued growth. The surge to a 52-week high is a testament to the company's strategic initiatives and the positive reception of its products and services in the market.
In other recent news, Perimeter Solutions has seen robust growth in Q2 2024, reporting a substantial increase in earnings. The Fire Safety division experienced an 85% surge in revenues to $98.5 million, while the Specialty Products business also reported a 25% increase in sales to $28.7 million. These strong performances contributed to a consolidated sales figure of $127.3 million, marking a 67% year-over-year growth. Adjusted EBITDA for the company also soared by 209% to $64.9 million.
Perimeter Solutions is also in the process of seeking shareholder approval for the redomiciliation of its parent company from Luxembourg to Delaware. In terms of future plans, the company intends to use excess cash flow for mergers and acquisitions, share repurchases, and special dividends. It is also anticipated that the company will benefit from working capital in 2024 and expected CapEx for the year is projected between $10 million and $15 million.
CEO Haitham Khouri has cautioned against making Q3 projections based on Q2's data but remains optimistic about improved unit economics and potential for increased earnings. These are the recent developments for Perimeter Solutions.
InvestingPro Insights
In light of Perimeter Solutions' recent market performance, InvestingPro data provides a deeper look into the company's financial health and stock behavior. With a market capitalization of $1.81 billion, the company is trading close to its 52-week high with a price that is 99.29% of this peak. This aligns with the stock's impressive year-to-date price total return of 171.09%, highlighting the significant investor confidence and stock appreciation over the past year.
InvestingPro Tips suggest that management's active share buybacks and analysts' anticipation of sales growth in the current year could be driving factors behind the stock’s performance. Notably, two analysts have revised their earnings expectations upwards for the upcoming period, providing a positive outlook on the company's profitability. However, it's important to note that the company has not been profitable over the last twelve months, and it is trading at a high EBITDA valuation multiple, which investors should consider when evaluating the stock's current valuation.
For those seeking additional insights, InvestingPro offers more tips on Perimeter Solutions, which can be accessed at https://www.investing.com/pro/PRM.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.