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

Last update: Mar 6, 2024

PERION NETWORK LTD (NASDAQ:PERI) was identified as an affordable growth stock by our stock screener. NASDAQ:PERI is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

ChartMill's Evaluation of Growth

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:

PERI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.16%, which is quite impressive.
The Earnings Per Share has been growing by 49.88% on average over the past years. This is a very strong growth
Looking at the last year, PERI shows a quite strong growth in Revenue. The Revenue has grown by 16.08% in the last year.
PERI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.07% yearly.
PERI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.40% yearly.
PERI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.69% yearly.

Evaluating Valuation: NASDAQ:PERI

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:PERI has received a 8 out of 10:

With a Price/Earnings ratio of 8.53, the valuation of PERI can be described as very reasonable.
PERI's Price/Earnings ratio is rather cheap when compared to the industry. PERI is cheaper than 87.50% of the companies in the same industry.
PERI is valuated cheaply when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.92, which indicates a rather cheap valuation of PERI.
Based on the Price/Forward Earnings ratio, PERI is valued a bit cheaper than 79.17% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PERI to the average of the S&P500 Index (21.73), 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 95.83% of the companies listed in the same industry.
83.33% of the companies in the same industry are more expensive than PERI, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of PERI may justify a higher PE ratio.

How We Gauge Health for NASDAQ:PERI

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PERI has received a 8 out of 10:

An Altman-Z score of 3.49 indicates that PERI is not in any danger for bankruptcy at the moment.
PERI has a better Altman-Z score (3.49) than 82.29% 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.
A Current Ratio of 2.14 indicates that PERI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.14, PERI is in the better half of the industry, outperforming 63.54% of the companies in the same industry.
PERI has a Quick Ratio of 2.14. This indicates that PERI is financially healthy and has no problem in meeting its short term obligations.
PERI has a better Quick ratio (2.14) than 65.63% of its industry peers.

Profitability Examination 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 9 is noteworthy for profitability:

PERI has a Return On Assets of 10.90%. This is amongst the best in the industry. PERI outperforms 92.71% of its industry peers.
PERI has a Return On Equity of 16.35%. This is amongst the best in the industry. PERI outperforms 86.46% of its industry peers.
PERI has a better Return On Invested Capital (13.67%) than 94.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PERI is significantly above the industry average of 7.04%.
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's Profit Margin of 15.80% is amongst the best of the industry. PERI outperforms 89.58% of its industry peers.
In the last couple of years the Profit Margin of PERI has grown nicely.
PERI's Operating Margin of 15.71% is amongst the best of the industry. PERI outperforms 85.42% of its industry peers.
PERI's Operating Margin has improved in the last couple of years.

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

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.