- Perimeter's core fire retardant business has a wide moat, enabling pricing power due to its mission-critical nature, the lack of available substitutes, and its small percentage of overall suppression costs.
- Though fire suppression spending is highly seasonal, volumes have historically grown at a high single-digit CAGR, supported by durable trends like global warming and increasing urbanization.
- Perimeter seems reasonably valued at today’s levels, though risk/reward is skewed to the upside given the optionality from the new FORTIFY product and further tuck-in acquisitions.
For further details see:
Perimeter Solutions: A Wide-Moat Company In A Life-Saving Niche