NASDAQ:PERI: good value for what you're paying.

Last update: Nov 2, 2023

PERION NETWORK LTD (NASDAQ:PERI) was identified as a decent value stock by our stock screener. NASDAQ:PERI scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Understanding NASDAQ:PERI's Valuation Score

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:

A Price/Earnings ratio of 10.68 indicates a reasonable valuation of PERI.
Based on the Price/Earnings ratio, PERI is valued a bit cheaper than 68.04% of the companies in the same industry.
When comparing the Price/Earnings ratio of PERI to the average of the S&P500 Index (23.21), we can say PERI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.64, the valuation of PERI can be described as reasonable.
Based on the Price/Forward Earnings ratio, PERI is valued a bit cheaper than 67.01% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.26, PERI is valued a bit cheaper.
PERI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PERI is cheaper than 90.72% of the companies in the same industry.
72.16% of the companies in the same industry are more expensive than PERI, based on the Price/Free Cash Flow ratio.
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.
PERI's earnings are expected to grow with 19.48% in the coming years. This may justify a more expensive valuation.

What does the Profitability looks like for NASDAQ:PERI

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:PERI, the assigned 8 is noteworthy for profitability:

The Return On Assets of PERI (12.11%) is better than 93.81% of its industry peers.
The Return On Equity of PERI (17.20%) is better than 86.60% of its industry peers.
With an excellent Return On Invested Capital value of 15.24%, PERI belongs to the best of the industry, outperforming 96.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PERI is significantly above the industry average of 6.18%.
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.
With an excellent Profit Margin value of 15.82%, PERI belongs to the best of the industry, outperforming 83.51% of the companies in the same industry.
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.

Health Assessment of NASDAQ:PERI

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PERI has achieved a 9 out of 10:

An Altman-Z score of 4.74 indicates that PERI is not in any danger for bankruptcy at the moment.
The Altman-Z score of PERI (4.74) is better than 90.72% of its industry peers.
There is no outstanding debt for PERI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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.
PERI's Current ratio of 2.57 is amongst the best of the industry. PERI outperforms 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.
With an excellent Quick ratio value of 2.57, PERI belongs to the best of the industry, outperforming 85.57% of the companies in the same industry.

A Closer Look at Growth for NASDAQ:PERI

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:PERI has earned a 8 for growth:

The Earnings Per Share has grown by an impressive 73.29% over the past year.
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.
The Earnings Per Share is expected to grow by 19.48% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.48% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of PERI contains the most current fundamental analsysis.

Keep in mind

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.