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Understanding the Efficiency of Perimeter Solutions and Peers in Generating Returns
Financial Modeling Prepยท 2025-11-04 02:00
Core Insights - Perimeter Solutions, S.A. (NYSE:PRM) specializes in fire safety and oil additives, operating in a competitive landscape with peers like Montrose Environmental Group, Inc. (MEG) and The E.W. Scripps Company (SSP) [1] - The analysis of Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) is crucial for understanding the efficiency of these companies in generating returns [1] Financial Performance - Perimeter Solutions has a ROIC of 3.78% and a WACC of 11.30%, resulting in a ROIC to WACC ratio of 0.33, indicating inefficiency in generating returns [2][5] - Montrose Environmental Group has a negative ROIC of -2.82% and a WACC of 10.47%, leading to a ROIC to WACC ratio of -0.27, which is less efficient than Perimeter Solutions [2] - The E.W. Scripps Company stands out with a ROIC of 5.78% and a WACC of 6.50%, resulting in a ROIC to WACC ratio of 0.89, indicating the highest efficiency among peers [3][5] - Scholastic Corporation has a ROIC of 1.74% and a WACC of 7.77%, with a ROIC to WACC ratio of 0.22, which is lower than that of Perimeter Solutions [3] - Lee Enterprises, Incorporated, and Unifi, Inc. both exhibit negative ROICs of -2.95% and -11.80%, respectively, with WACCs of 4.50% and 6.78%, resulting in ROIC to WACC ratios of -0.66 and -1.74, indicating significant inefficiencies [4][5]