NASDAQ:PERI is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Mar 27, 2024

Uncover the potential of PERION NETWORK LTD (NASDAQ:PERI) as our stock screener's choice for an undervalued stock. NASDAQ:PERI maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

How We Gauge Valuation for NASDAQ:PERI

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:PERI has earned a 8 for valuation:

PERI is valuated reasonably with a Price/Earnings ratio of 8.50.
90.63% 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 26.05, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.19, the valuation of PERI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PERI is valued cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PERI to the average of the S&P500 Index (22.42), we can say PERI is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, PERI is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PERI is valued cheaply inside the industry as 84.38% of the companies are valued more expensively.
PERI has an outstanding profitability rating, which may justify a higher PE ratio.

Understanding NASDAQ:PERI's Profitability

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:

PERI has a better Return On Assets (10.90%) than 91.67% of its industry peers.
With an excellent Return On Equity value of 16.35%, PERI belongs to the best of the industry, outperforming 86.46% of the companies in the same industry.
PERI has a better Return On Invested Capital (13.67%) than 93.75% of its industry peers.
PERI had an Average Return On Invested Capital over the past 3 years of 12.04%. This is above the industry average of 7.46%.
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 88.54% of its industry peers.
In the last couple of years the Profit Margin of PERI has grown nicely.
PERI has a Operating Margin of 15.71%. This is amongst the best in the industry. PERI outperforms 84.38% of its industry peers.
In the last couple of years the Operating Margin of PERI has grown nicely.

Evaluating Health: 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 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 Altman-Z score of 3.49. This is amongst the best in the industry. PERI outperforms 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.
PERI has a Current Ratio of 2.14. This indicates that PERI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of PERI (2.14) is better than 64.58% of its industry peers.
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.
The Quick ratio of PERI (2.14) is better than 66.67% of its industry peers.

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 28.16%, which is quite impressive.
PERI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 49.88% yearly.
Looking at the last year, PERI shows a quite strong growth in Revenue. The Revenue has grown by 16.08% in the last year.
The Revenue has been growing by 24.07% on average over the past years. This is a very strong growth!
Based on estimates for the next years, PERI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.44% on average per year.
Based on estimates for the next years, PERI will show a quite strong growth in Revenue. The Revenue will grow by 14.07% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.