SensientPerimeter Solutions

Sensient vs Perimeter Solutions

Sensient Technologies Corp and PERIMETER SOLUTIONS SA are compared on this page to provide a neutral overview of their business models, financial performance, and market context. The aim is to explain...

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Investment Analysis

Pros

  • Sensient Technologies reported Q3 2025 revenue growth of 5.0% year-over-year, surpassing analyst expectations with $412.1 million in sales.
  • The Color Group, a key segment, showed strong growth with nearly 10% revenue increase and expanded EBITDA margins by 250 basis points to 24.7%.
  • Analysts forecast accelerated annual revenue growth of 5.8% through 2026, outpacing industry peers' average of 4.3%.

Considerations

  • Sensient's price-to-earnings ratio around 30.5 is above its own 3- and 5-year averages, indicating a potentially stretched valuation compared to historical norms.
  • The company operates in cyclical specialty chemicals markets that can be vulnerable to raw material cost fluctuations and regulatory changes.
  • Despite strong recent earnings per share growth, the 52-week stock price range shows notable volatility between $66 and $121, reflecting market uncertainty.

Pros

  • Perimeter Solutions has a solid gross margin of 58.25% and a net profit margin of 12.26%, indicating strong operational profitability.
  • The company’s diverse product segments span firefighting products and lubricant additives, reducing dependence on any single market.
  • Perimeter Solutions trades at a comparatively lower P/E ratio of 13.4 times, suggesting a more attractive valuation relative to Sensient.

Considerations

  • Perimeter Solutions carries a relatively high debt-to-equity ratio of 70.6%, indicating higher leverage and potential financial risk.
  • Its revenue of approximately $636 million is significantly lower than Sensient, with earnings per share at 0.53 reflecting more modest profitability.
  • Growth prospects may be constrained by market cyclicality and demand variability in fire safety and specialty chemicals end markets.

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