PERION NETWORK LTD (PERI)
IL0010958192 - Common Stock
We assign a fundamental rating of 6 out of 10 to PERI. PERI was compared to 91 industry peers in the Media industry. Both the health and profitability get an excellent rating, making PERI a very profitable company, without any liquidiy or solvency issues. PERI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PERI had positive earnings in the past year.
PERI had a positive operating cash flow in the past year.
Each year in the past 5 years PERI has been profitable.
PERI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PERI has a better Return On Assets (5.27%) than 85.56% of its industry peers.
PERI's Return On Equity of 6.52% is fine compared to the rest of the industry. PERI outperforms 74.44% of its industry peers.
PERI has a Return On Invested Capital (4.53%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PERI is significantly above the industry average of 6.93%.
The last Return On Invested Capital (4.53%) for PERI is well below the 3 year average (12.16%), which needs to be investigated, but indicates that PERI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 6.52% | ||
| ROIC | 4.53% |
ROA(3y)9.24%
ROA(5y)7.02%
ROE(3y)13.88%
ROE(5y)11%
ROIC(3y)12.16%
ROIC(5y)9.73%
1.3 Margins
PERI's Profit Margin of 7.81% is fine compared to the rest of the industry. PERI outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of PERI has grown nicely.
The Operating Margin of PERI (6.56%) is comparable to the rest of the industry.
PERI's Operating Margin has improved in the last couple of years.
PERI has a Gross Margin (33.67%) which is comparable to the rest of the industry.
PERI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.56% | ||
| PM (TTM) | 7.81% | ||
| GM | 33.67% |
OM growth 3Y62.62%
OM growth 5Y19.39%
PM growth 3Y71.93%
PM growth 5Y37.59%
GM growth 3Y3.65%
GM growth 5Y-1.65%
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.
PERI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
PERI has an Altman-Z score of 3.06. This indicates that PERI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PERI (3.06) is better than 84.44% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.48
WACC9.36%
2.3 Liquidity
A Current Ratio of 3.88 indicates that PERI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.88, PERI belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
PERI has a Quick Ratio of 3.88. This indicates that PERI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.88, PERI belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
PERI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.91%.
PERI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 49.88% yearly.
PERI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.11%.
PERI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.07% yearly.
EPS 1Y (TTM)-64.91%
EPS 3Y100%
EPS 5Y49.88%
EPS Q2Q%-93.85%
Revenue 1Y (TTM)-16.11%
Revenue growth 3Y31.33%
Revenue growth 5Y24.07%
Sales Q2Q%-44.85%
3.2 Future
The Earnings Per Share is expected to decrease by -54.12% on average over the next years. This is quite bad
Based on estimates for the next years, PERI will show a very negative growth in Revenue. The Revenue will decrease by -12.42% on average per year.
EPS Next Y-88.8%
EPS Next 2Y-71.65%
EPS Next 3Y-54.12%
EPS Next 5YN/A
Revenue Next Year-32.73%
Revenue Next 2Y-20.52%
Revenue Next 3Y-12.42%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.95, which indicates a very decent valuation of PERI.
Based on the Price/Earnings ratio, PERI is valued cheaply inside the industry as 84.44% of the companies are valued more expensively.
PERI is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 39.22 indicates a quite expensive valuation of PERI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PERI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, PERI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 39.22 |
4.2 Price Multiples
78.89% of the companies in the same industry are more expensive than PERI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.56 | ||
| EV/EBITDA | -3.82 |
4.3 Compensation for Growth
The decent profitability rating of PERI may justify a higher PE ratio.
PERI's earnings are expected to decrease with -54.12% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-71.65%
EPS Next 3Y-54.12%
5. Dividend
5.1 Amount
No dividends for PERI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PERION NETWORK LTD
NASDAQ:PERI (12/23/2024, 12:03:52 PM)
8.32
+0.11 (+1.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners57.93%
Inst Owner Change-6.49%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap402.85M
Analysts73.33
Price Target9.69 (16.47%)
Short Float %1.57%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-978.43%
Min EPS beat(2)-2449.02%
Max EPS beat(2)492.16%
EPS beat(4)2
Avg EPS beat(4)-489.71%
Min EPS beat(4)-2449.02%
Max EPS beat(4)492.16%
EPS beat(8)6
Avg EPS beat(8)-230.86%
EPS beat(12)10
Avg EPS beat(12)-147.83%
EPS beat(16)14
Avg EPS beat(16)-87.78%
Revenue beat(2)1
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)0.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-1.49%
Max Revenue beat(4)0.15%
Revenue beat(8)4
Avg Revenue beat(8)-0.24%
Revenue beat(12)6
Avg Revenue beat(12)0.19%
Revenue beat(16)10
Avg Revenue beat(16)1.24%
PT rev (1m)7.55%
PT rev (3m)1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-84.51%
EPS NY rev (1m)18.37%
EPS NY rev (3m)24.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-51.11%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 39.22 | ||
| P/S | 0.67 | ||
| P/FCF | 8.56 | ||
| P/OCF | 7.63 | ||
| P/B | 0.56 | ||
| P/tB | 1 | ||
| EV/EBITDA | -3.82 |
EPS(TTM)0.93
EY11.18%
EPS(NY)0.21
Fwd EY2.55%
FCF(TTM)0.97
FCFY11.68%
OCF(TTM)1.09
OCFY13.11%
SpS12.45
BVpS14.91
TBVpS8.3
PEG (NY)N/A
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 6.52% | ||
| ROCE | 5.25% | ||
| ROIC | 4.53% | ||
| ROICexc | 9.23% | ||
| ROICexgc | 68.16% | ||
| OM | 6.56% | ||
| PM (TTM) | 7.81% | ||
| GM | 33.67% | ||
| FCFM | 7.8% |
ROA(3y)9.24%
ROA(5y)7.02%
ROE(3y)13.88%
ROE(5y)11%
ROIC(3y)12.16%
ROIC(5y)9.73%
ROICexc(3y)34.95%
ROICexc(5y)24.4%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)14.09%
ROCE(5y)11.28%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y87.2%
ROICexc growth 5Y29.71%
OM growth 3Y62.62%
OM growth 5Y19.39%
PM growth 3Y71.93%
PM growth 5Y37.59%
GM growth 3Y3.65%
GM growth 5Y-1.65%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 34.35% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.69% | ||
| Profit Quality | 99.93% | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | 3.06 |
F-Score6
WACC9.36%
ROIC/WACC0.48
Cap/Depr(3y)6.6%
Cap/Depr(5y)7.44%
Cap/Sales(3y)0.14%
Cap/Sales(5y)0.2%
Profit Quality(3y)145.29%
Profit Quality(5y)197.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-64.91%
EPS 3Y100%
EPS 5Y49.88%
EPS Q2Q%-93.85%
EPS Next Y-88.8%
EPS Next 2Y-71.65%
EPS Next 3Y-54.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.11%
Revenue growth 3Y31.33%
Revenue growth 5Y24.07%
Sales Q2Q%-44.85%
Revenue Next Year-32.73%
Revenue Next 2Y-20.52%
Revenue Next 3Y-12.42%
Revenue Next 5YN/A
EBIT growth 1Y-66.49%
EBIT growth 3Y113.56%
EBIT growth 5Y48.13%
EBIT Next Year-58.2%
EBIT Next 3Y-27.32%
EBIT Next 5YN/A
FCF growth 1Y-57.92%
FCF growth 3Y92.44%
FCF growth 5Y39.76%
OCF growth 1Y-53.13%
OCF growth 3Y91.32%
OCF growth 5Y36.51%