Investors should take note of NASDAQ:PERI, a growth stock that remains attractively priced.

Last update: Mar 28, 2024

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 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.
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.
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.
PERI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.07% 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:

A Price/Earnings ratio of 8.47 indicates a reasonable valuation of PERI.
Based on the Price/Earnings ratio, PERI is valued cheaper than 91.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.42. PERI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.15, the valuation of PERI can be described as very reasonable.
PERI's Price/Forward Earnings ratio is rather cheap when compared to the industry. PERI is 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 (22.74), we can say PERI is valued rather cheaply.
PERI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PERI is cheaper than 95.83% of the companies in the same industry.
84.38% of the companies in the same industry are more expensive than PERI, based on the Price/Free Cash Flow ratio.
PERI has an outstanding profitability rating, which may justify a higher PE ratio.

Health Analysis for NASDAQ:PERI

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:PERI, the assigned 8 for health provides valuable insights:

PERI has an Altman-Z score of 3.48. This indicates that PERI is financially healthy and has little risk of bankruptcy at the moment.
PERI has a Altman-Z score of 3.48. This is amongst the best in the industry. PERI outperforms 84.38% 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.
With a decent Current ratio value of 2.14, PERI is doing good in the industry, outperforming 64.58% of the companies in the same industry.
A Quick Ratio of 2.14 indicates that PERI has no problem at all paying its short term obligations.
The Quick ratio of PERI (2.14) is better than 66.67% of its industry peers.

A Closer Look at Profitability for NASDAQ:PERI

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 8 out of 10:

PERI's Return On Assets of 10.90% is amongst the best of the industry. PERI outperforms 91.67% of its industry peers.
PERI's Return On Equity of 16.35% is amongst the best of the industry. PERI outperforms 86.46% of its industry peers.
The Return On Invested Capital of PERI (13.67%) is better 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 3 year average ROIC (12.04%) for PERI is below the current ROIC(13.67%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 15.80%, PERI belongs to the top of the industry, outperforming 88.54% 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 15.71%, PERI belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
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.

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

Disclaimer

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.