Is Perimeter Solutions, Inc. (PRM) Halal?

NYSE Basic Materials United States $3.2B
✓ HALAL
Confidence: 95/100
Perimeter Solutions, Inc. (PRM) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 20.1% against the AAOIFI threshold of 30%, Perimeter Solutions, Inc. comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Specialty Chemicals), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 20.1%
/ 30%
9.3%
/ 30%
2.5%
/ 30%
0.58%
/ 5%
✓ HALAL
DJIM 20.1%
/ 33%
9.3%
/ 33%
2.5%
/ 33%
0.58%
/ 5%
✓ HALAL
MSCI 26.7%
/ 33%
12.3%
/ 33%
3.3%
/ 33%
0.58%
/ 5%
✓ HALAL
S&P 20.1%
/ 33%
9.3%
/ 33%
2.5%
/ 33%
0.58%
/ 5%
✓ HALAL
FTSE 26.7%
/ 33%
12.3%
/ 33%
3.3%
/ 50%
0.58%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-1.37
P/B Ratio
2.8
EV/EBITDA
-29.1
EV: $3.7B
Revenue
$653M
Growth: 19.2%
Beta
2.0
High volatility
Current Ratio
3.2

Profitability

Gross Margin 57.5%
Operating Margin -160.7%
Net Margin -31.6%
Return on Equity (ROE) -18.0%
Return on Assets (ROA) -5.0%

Cash Flow & Balance Sheet

Operating Cash Flow$238M
Free Cash Flow$193M
Total Debt$707M
Debt-to-Equity72.7
Current Ratio3.2
Total Assets$2.7B

Price & Trading

Last Close$21.44
50-Day MA$25.12
200-Day MA$22.58
Avg Volume953K
Beta2.0
52-Week Range
$8.76
$29.88

About Perimeter Solutions, Inc. (PRM)

CEO
Mr. Haitham R. Khouri
Employees
356
Sector
Basic Materials
Industry
Specialty Chemicals
Country
United States
Exchange
NYSE
Market Cap
$3.2B
Currency
USD

Perimeter Solutions, Inc. manufactures and supplies firefighting products, electronic components, lubricant additives, and engineered machinery in the United States, Germany, and internationally. It operates in two segments, Fire Safety and Specialty Products. The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services for federal, state, provincial, local/municipal, and commercial customers. The Specialty Products segment develops, produces, and markets products for non-fire safety markets, including phosphorus pentasulfide based lubricant additives used in pesticide and mining chemicals applications, and electric battery technologies. This segment also offers engineered machinery and associated aftermarket consumables parts, and services, as well as original equipment manufacturing, and automation solutions for medical devices such as complex catheters, guidewires and microcoils, as well as aftermarket parts, services, and consumables. The company was founded in 1963 and is headquartered in Clayton, Missouri.

Purification Calculator

As a halal stock with 0.58% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Perimeter Solutions, Inc. (PRM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Perimeter Solutions, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Perimeter Solutions, Inc.'s debt ratio?

Perimeter Solutions, Inc.'s debt ratio is 20.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 26.7%.

Does Perimeter Solutions, Inc. require dividend purification?

Yes, Perimeter Solutions, Inc. has an impermissible income ratio of 0.58%, which means 0.58% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Perimeter Solutions, Inc.'s key financial metrics?

Perimeter Solutions, Inc. has a market capitalization of $3.2B, and revenue of $653M. The company maintains a gross margin of 57.5% and a net margin of -31.6%. Return on equity stands at -18.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.