PERION NETWORK LTD (PERI) Stock Fundamental Analysis
NASDAQ:PERI - Nasdaq - IL0010958192 - Common Stock - Currency: USD
Taking everything into account, PERI scores 6 out of 10 in our fundamental rating. PERI was compared to 93 industry peers in the Media industry. PERI gets an excellent profitability rating and is at the same time showing great financial health properties. PERI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PERI was profitable.
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
PERI has a Return On Assets of 5.27%. This is amongst the best in the industry. PERI outperforms 86.21% of its industry peers.
With a decent Return On Equity value of 6.52%, PERI is doing good in the industry, outperforming 74.71% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.53%, PERI is in line with its industry, outperforming 58.62% of the companies in the same industry.
PERI had an Average Return On Invested Capital over the past 3 years of 12.16%. This is significantly above the industry average of 6.94%.
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 has a better Profit Margin (7.81%) than 80.46% of its industry peers.
PERI's Profit Margin has improved in the last couple of years.
The Operating Margin of PERI (6.56%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PERI has grown nicely.
PERI's Gross Margin of 33.67% is in line compared to the rest of the industry. PERI outperforms 40.23% of its industry peers.
In the last couple of years the Gross Margin of PERI has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PERI is still creating some value.
The number of shares outstanding for PERI has been increased compared to 1 year ago.
PERI has more shares outstanding than it did 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
PERI has an Altman-Z score of 3.31. This indicates that PERI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PERI (3.31) is better than 86.21% 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 | 3.31 |
ROIC/WACC0.5
WACC9.11%
2.3 Liquidity
A Current Ratio of 3.88 indicates that PERI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.88, PERI belongs to the best of the industry, outperforming 93.10% 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.
PERI's Quick ratio of 3.88 is amongst the best of the industry. PERI outperforms 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
The earnings per share for PERI have decreased strongly by -64.91% in the last year.
The Earnings Per Share has been growing by 49.88% on average over the past years. This is a very strong growth
The Revenue for PERI has decreased by -16.11% in the past year. This is quite bad
The Revenue has been growing by 24.07% on average over the past years. This is a very strong growth!
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
PERI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -54.12% yearly.
PERI is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -12.42% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
PERI is valuated reasonably with a Price/Earnings ratio of 10.70.
PERI's Price/Earnings ratio is a bit cheaper when compared to the industry. PERI is cheaper than 77.01% of the companies in the same industry.
PERI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
With a Price/Forward Earnings ratio of 46.90, PERI can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as PERI.
PERI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 46.9 |
4.2 Price Multiples
77.01% 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 | 10.24 | ||
| EV/EBITDA | -2.56 |
4.3 Compensation for Growth
PERI has a very decent profitability rating, which 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)0.21
EPS Next 2Y-71.65%
EPS Next 3Y-54.12%
5. Dividend
5.1 Amount
PERI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PERION NETWORK LTD
NASDAQ:PERI (2/5/2025, 4:30:01 PM)
After market: 9.9599 +0.01 (+0.1%)9.95
+0.27 (+2.79%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners57.93%
Inst Owner Change0.51%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap481.78M
Analysts74.55
Price Target10.2 (2.51%)
Short Float %1.28%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend15.85
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)0%
PT rev (3m)13.21%
EPS NQ rev (1m)-2.82%
EPS NQ rev (3m)-84.95%
EPS NY rev (1m)0%
EPS NY rev (3m)24.29%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-51.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 46.9 | ||
| P/S | 0.8 | ||
| P/FCF | 10.24 | ||
| P/OCF | 9.12 | ||
| P/B | 0.67 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | -2.56 |
EPS(TTM)0.93
EY9.35%
EPS(NY)0.21
Fwd EY2.13%
FCF(TTM)0.97
FCFY9.76%
OCF(TTM)1.09
OCFY10.96%
SpS12.45
BVpS14.91
TBVpS8.3
PEG (NY)N/A
PEG (5Y)0.21
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 | 3.31 |
F-Score6
WACC9.11%
ROIC/WACC0.5
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-58.35%
EBIT Next 3Y-27.04%
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%