While growth is established for NASDAQ:PERI, the stock's valuation remains reasonable.

Last update: Oct 13, 2023

Here's PERION NETWORK LTD (NASDAQ:PERI) for you, a growth stock our stock screener believes is undervalued. NASDAQ:PERI is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Assessment of NASDAQ:PERI

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:PERI, the assigned 8 reflects its growth potential:

PERI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.29%, which is quite impressive.
Measured over the past years, PERI shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.56% on average per year.
PERI shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.58%.
Measured over the past years, PERI shows a quite strong growth in Revenue. The Revenue has been growing by 18.50% on average per year.
PERI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.43% yearly.
Based on estimates for the next years, PERI will show a quite strong growth in Revenue. The Revenue will grow by 12.48% on average per year.

Valuation Assessment of NASDAQ:PERI

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:PERI has achieved a 8 out of 10:

PERI is valuated reasonably with a Price/Earnings ratio of 10.89.
72.16% of the companies in the same industry are more expensive than PERI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.71. PERI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.84 indicates a reasonable valuation of PERI.
Based on the Price/Forward Earnings ratio, PERI is valued a bit cheaper than the industry average as 70.10% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PERI to the average of the S&P500 Index (18.80), we can say PERI is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, PERI is valued cheaply inside the industry as 91.75% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PERI is valued a bit cheaper than 72.16% of the companies in the same industry.
PERI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PERI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PERI's earnings are expected to grow with 19.43% in the coming years.

Deciphering NASDAQ:PERI's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:PERI has earned a 9 out of 10:

An Altman-Z score of 4.80 indicates that PERI is not in any danger for bankruptcy at the moment.
PERI has a Altman-Z score of 4.80. This is amongst the best in the industry. PERI outperforms 89.69% of its industry peers.
PERI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
PERI has a Current Ratio of 2.57. This indicates that PERI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PERI (2.57) is better than 85.57% of its industry peers.
A Quick Ratio of 2.57 indicates that PERI has no problem at all paying its short term obligations.
PERI has a Quick ratio of 2.57. This is amongst the best in the industry. PERI outperforms 85.57% of its industry peers.

Profitability Examination for NASDAQ:PERI

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:PERI has earned a 8 out of 10:

The Return On Assets of PERI (12.11%) is better than 93.81% of its industry peers.
PERI's Return On Equity of 17.20% is amongst the best of the industry. PERI outperforms 87.63% of its industry peers.
PERI has a better Return On Invested Capital (15.24%) than 96.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PERI is significantly above the industry average of 6.17%.
The last Return On Invested Capital (15.24%) for PERI is well below the 3 year average (32.81%), which needs to be investigated, but indicates that PERI had better years and this may not be a problem.
PERI's Profit Margin of 15.82% is amongst the best of the industry. PERI outperforms 83.51% of its industry peers.
In the last couple of years the Profit Margin of PERI has grown nicely.
The Operating Margin of PERI (16.65%) is better than 82.47% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of PERI

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.