FMP
Nov 03, 2025
Perimeter Solutions, S.A. (NYSE:PRM) is a company that specializes in providing innovative solutions for fire safety and oil additives. It operates in a competitive landscape alongside companies like Montrose Environmental Group, Inc. (MEG) and The E.W. Scripps Company (SSP). Analyzing the Return on Invested Capital (ROIC) and the Weighted Average Cost of Capital (WACC) helps in understanding how efficiently these companies generate returns compared to their cost of capital.
Perimeter Solutions has a ROIC of 3.78% and a WACC of 11.30%, resulting in a ROIC to WACC ratio of 0.33. This indicates that PRM's returns are less than its cost of capital, suggesting inefficiency in generating returns. In comparison, 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 even less efficient than PRM.
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. This indicates that SSP is the most efficient among the peers in generating returns relative to its cost of capital. Scholastic Corporation, with a ROIC of 1.74% and a WACC of 7.77%, has a ROIC to WACC ratio of 0.22, which is lower than PRM's ratio.
Lee Enterprises, Incorporated, and Unifi, Inc. both have negative ROICs of -2.95% and -11.80%, respectively, with WACCs of 4.50% and 6.78%. Their ROIC to WACC ratios are -0.66 and -1.74, respectively, indicating significant inefficiencies in generating returns. This comparison highlights that while PRM is not the most efficient, it performs better than some of its peers in terms of ROIC relative to WACC.
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