NASDAQ:PERI, a growth stock which is not overvalued.

Last update: Feb 14, 2024

Consider PERION NETWORK LTD (NASDAQ:PERI) as an affordable growth stock, identified by our stock screening tool. NASDAQ:PERI is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PERI has received a 7 out of 10:

The Earnings Per Share has grown by an impressive 40.78% 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 49.88% on average per year.
PERI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.08%.
Measured over the past years, PERI shows a very strong growth in Revenue. The Revenue has been growing by 24.07% on average per year.
PERI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.75% yearly.

Exploring NASDAQ:PERI's Valuation

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:

The Price/Earnings ratio is 7.72, which indicates a rather cheap valuation of PERI.
Compared to the rest of the industry, the Price/Earnings ratio of PERI indicates a rather cheap valuation: PERI is cheaper than 90.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PERI to the average of the S&P500 Index (26.01), we can say PERI is valued rather cheaply.
A Price/Forward Earnings ratio of 7.87 indicates a rather cheap valuation of PERI.
PERI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PERI is cheaper than 78.72% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PERI to the average of the S&P500 Index (21.13), we can say PERI is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PERI indicates a rather cheap valuation: PERI is cheaper than 94.68% of the companies listed in the same industry.
PERI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PERI is cheaper than 82.98% of the companies in the same industry.
The excellent profitability rating of PERI may justify a higher PE ratio.

Evaluating Health: NASDAQ:PERI

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

An Altman-Z score of 3.48 indicates that PERI is not in any danger for bankruptcy at the moment.
PERI's Altman-Z score of 3.48 is amongst the best of the industry. PERI outperforms 84.04% 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 2.14 indicates that PERI has no problem at all paying its short term obligations.
PERI has a better Current ratio (2.14) than 74.47% of its industry peers.
A Quick Ratio of 2.14 indicates that PERI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.14, PERI is in the better half of the industry, outperforming 76.60% of the companies in the same industry.

Analyzing Profitability Metrics

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 9 out of 10:

Looking at the Return On Assets, with a value of 10.90%, PERI belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
PERI's Return On Equity of 16.35% is amongst the best of the industry. PERI outperforms 87.23% of its industry peers.
PERI has a better Return On Invested Capital (13.67%) than 94.68% of its industry peers.
PERI had an Average Return On Invested Capital over the past 3 years of 12.04%. This is significantly above the industry average of 6.58%.
The last Return On Invested Capital (13.67%) for PERI is above the 3 year average (12.04%), which is a sign of increasing profitability.
PERI has a Profit Margin of 15.80%. This is amongst the best in the industry. PERI outperforms 82.98% of its industry peers.
In the last couple of years the Profit Margin of PERI has grown nicely.
With an excellent Operating Margin value of 15.71%, PERI belongs to the best of the industry, outperforming 81.91% of the companies in the same industry.
In the last couple of years the Operating Margin of PERI has grown nicely.

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

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.