PERION NETWORK LTD (PERI) Stock Fundamental Analysis
NASDAQ:PERI - Nasdaq - IL0010958192 - Common Stock - Currency: USD
PERI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 97 industry peers in the Media industry. PERI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. PERI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PERI had positive earnings in the past year.
In the past year PERI had a positive cash flow from operations.
PERI had positive earnings in each of the past 5 years.
Each year in the past 5 years PERI had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.38%, PERI is doing good in the industry, outperforming 64.95% of the companies in the same industry.
PERI has a better Return On Equity (1.75%) than 60.82% of its industry peers.
PERI has a worse Return On Invested Capital (0.43%) than 62.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PERI is above the industry average of 6.94%.
The 3 year average ROIC (9.43%) for PERI is well above the current ROIC(0.43%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 1.75% | ||
| ROIC | 0.43% |
ROA(3y)7.89%
ROA(5y)6.39%
ROE(3y)11.7%
ROE(5y)9.79%
ROIC(3y)9.43%
ROIC(5y)7.99%
1.3 Margins
The Profit Margin of PERI (2.53%) is better than 64.95% of its industry peers.
PERI's Profit Margin has declined in the last couple of years.
PERI has a worse Operating Margin (0.77%) than 63.92% of its industry peers.
PERI's Operating Margin has declined in the last couple of years.
PERI has a Gross Margin (33.20%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PERI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.77% | ||
| PM (TTM) | 2.53% | ||
| GM | 33.2% |
OM growth 3Y-56.79%
OM growth 5Y-35.41%
PM growth 3Y-32.1%
PM growth 5Y-12.49%
GM growth 3Y-1.31%
GM growth 5Y-2.79%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PERI is creating some value.
Compared to 1 year ago, PERI has more shares outstanding
The number of shares outstanding for PERI has been increased compared to 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 2.60 indicates that PERI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.60, PERI belongs to the top of the industry, outperforming 82.47% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.05
WACC8.95%
2.3 Liquidity
PERI has a Current Ratio of 3.41. This indicates that PERI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.41, PERI belongs to the top of the industry, outperforming 92.78% of the companies in the same industry.
PERI has a Quick Ratio of 3.41. This indicates that PERI is financially healthy and has no problem in meeting its short term obligations.
PERI has a better Quick ratio (3.41) than 92.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 |
3. Growth
3.1 Past
PERI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -90.15%.
PERI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.53% yearly.
Looking at the last year, PERI shows a very negative growth in Revenue. The Revenue has decreased by -32.96% in the last year.
The Revenue has been growing by 13.76% on average over the past years. This is quite good.
EPS 1Y (TTM)-90.15%
EPS 3Y-36.17%
EPS 5Y-14.53%
EPS Q2Q%-85.9%
Revenue 1Y (TTM)-32.96%
Revenue growth 3Y1.36%
Revenue growth 5Y13.76%
Sales Q2Q%-44.67%
3.2 Future
The Earnings Per Share is expected to decrease by -11.42% on average over the next years. This is quite bad
Based on estimates for the next years, PERI will show a decrease in Revenue. The Revenue will decrease by -5.93% on average per year.
EPS Next Y-37.23%
EPS Next 2Y-11.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-18.18%
Revenue Next 2Y-5.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.13 indicates a quite expensive valuation of PERI.
PERI's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PERI to the average of the S&P500 Index (28.29), we can say PERI is valued slightly more expensively.
The Price/Forward Earnings ratio is 54.38, which means the current valuation is very expensive for PERI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PERI is on the same level as its industry peers.
PERI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.13 | ||
| Fwd PE | 54.38 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as PERI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3537.44 | ||
| EV/EBITDA | -9.4 |
4.3 Compensation for Growth
A cheap valuation may be justified as PERI's earnings are expected to decrease with -11.42% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PERI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.875
+0.2 (+2.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners54.44%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap399.73M
Analysts74.55
Price Target9.95 (12.11%)
Short Float %1.95%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)235.29%
Min EPS beat(2)-21.57%
Max EPS beat(2)492.16%
EPS beat(4)2
Avg EPS beat(4)-493.46%
Min EPS beat(4)-2449.02%
Max EPS beat(4)492.16%
EPS beat(8)5
Avg EPS beat(8)-237.42%
EPS beat(12)9
Avg EPS beat(12)-150.48%
EPS beat(16)13
Avg EPS beat(16)-91.97%
Revenue beat(2)1
Avg Revenue beat(2)-1.23%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)0.15%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)0.15%
Revenue beat(8)3
Avg Revenue beat(8)-0.71%
Revenue beat(12)5
Avg Revenue beat(12)-0.59%
Revenue beat(16)9
Avg Revenue beat(16)0.82%
PT rev (1m)0%
PT rev (3m)-2.5%
EPS NQ rev (1m)-44.39%
EPS NQ rev (3m)-70.76%
EPS NY rev (1m)-26.44%
EPS NY rev (3m)-23.08%
Revenue NQ rev (1m)-3.3%
Revenue NQ rev (3m)-10.62%
Revenue NY rev (1m)-5.26%
Revenue NY rev (3m)-12.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.13 | ||
| Fwd PE | 54.38 | ||
| P/S | 0.8 | ||
| P/FCF | 3537.44 | ||
| P/OCF | 57.61 | ||
| P/B | 0.56 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | -9.4 |
EPS(TTM)0.26
EY2.93%
EPS(NY)0.16
Fwd EY1.84%
FCF(TTM)0
FCFY0.03%
OCF(TTM)0.15
OCFY1.74%
SpS11.06
BVpS15.98
TBVpS8.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 1.75% | ||
| ROCE | 0.51% | ||
| ROIC | 0.43% | ||
| ROICexc | 0.85% | ||
| ROICexgc | 5.16% | ||
| OM | 0.77% | ||
| PM (TTM) | 2.53% | ||
| GM | 33.2% | ||
| FCFM | 0.02% |
ROA(3y)7.89%
ROA(5y)6.39%
ROE(3y)11.7%
ROE(5y)9.79%
ROIC(3y)9.43%
ROIC(5y)7.99%
ROICexc(3y)27.6%
ROICexc(5y)21.58%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.31%
ROCE(5y)9.59%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-48.54%
ROICexc growth 3Y-64.71%
ROICexc growth 5Y-39.86%
OM growth 3Y-56.79%
OM growth 5Y-35.41%
PM growth 3Y-32.1%
PM growth 5Y-12.49%
GM growth 3Y-1.31%
GM growth 5Y-2.79%
F-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 41.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.2% | ||
| Profit Quality | 0.9% | ||
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 | ||
| Altman-Z | 2.6 |
F-Score5
WACC8.95%
ROIC/WACC0.05
Cap/Depr(3y)18.42%
Cap/Depr(5y)13.27%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.39%
Profit Quality(3y)84.86%
Profit Quality(5y)129.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-90.15%
EPS 3Y-36.17%
EPS 5Y-14.53%
EPS Q2Q%-85.9%
EPS Next Y-37.23%
EPS Next 2Y-11.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-32.96%
Revenue growth 3Y1.36%
Revenue growth 5Y13.76%
Sales Q2Q%-44.67%
Revenue Next Year-18.18%
Revenue Next 2Y-5.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-96.7%
EBIT growth 3Y-56.2%
EBIT growth 5Y-26.52%
EBIT Next Year1372.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-99.93%
FCF growth 3Y-88.3%
FCF growth 5Y-69.6%
OCF growth 1Y-95.54%
OCF growth 3Y-53.96%
OCF growth 5Y-31.1%