Looking for growth without the hefty price tag? Consider NASDAQ:PERI.

Last update: Nov 3, 2023

Discover PERION NETWORK LTD (NASDAQ:PERI), an undervalued growth gem identified by our stock screener. NASDAQ:PERI is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Assessing Growth for NASDAQ:PERI

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:PERI scores a 8 out of 10:

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.
Looking at the last year, PERI shows a very strong growth in Revenue. 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.

Valuation Assessment of NASDAQ:PERI

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:PERI, the assigned 8 reflects its valuation:

A Price/Earnings ratio of 10.97 indicates a reasonable valuation of PERI.
68.04% of the companies in the same industry are more expensive than PERI, based on the Price/Earnings ratio.
PERI is valuated cheaply when we compare the Price/Earnings ratio to 23.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.91, the valuation of PERI can be described as reasonable.
Based on the Price/Forward Earnings ratio, PERI is valued a bit cheaper than the industry average as 67.01% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.67, PERI is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, PERI is valued cheaply inside the industry as 90.72% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PERI is valued a bit cheaper than the industry average as 72.16% of the companies are valued more expensively.
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 19.48% in the coming years.

Evaluating Health: NASDAQ:PERI

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:PERI, the assigned 9 reflects its health status:

PERI has an Altman-Z score of 4.74. This indicates that PERI is financially healthy and has little risk of bankruptcy at the moment.
PERI has a Altman-Z score of 4.74. This is amongst the best in the industry. PERI outperforms 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.
A Current Ratio of 2.57 indicates that PERI has no problem at all paying 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.
Looking at the Quick ratio, with a value of 2.57, PERI belongs to the top of the industry, outperforming 85.57% of the companies in the same industry.

What does the Profitability looks like for NASDAQ:PERI

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:PERI was assigned a score of 8 for profitability:

With an excellent Return On Assets value of 12.11%, PERI belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
PERI has a Return On Equity of 17.20%. This is amongst the best in the industry. PERI outperforms 86.60% of its industry peers.
PERI's Return On Invested Capital of 15.24% is amongst the best of the industry. PERI outperforms 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 6.18%.
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.
PERI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 16.65%, PERI belongs to the best of the industry, outperforming 82.47% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of PERI for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.