PERION NETWORK LTD (PERI) Stock Fundamental Analysis
NASDAQ:PERI - Nasdaq - IL0010958192 - Common Stock - Currency: USD
PERI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 96 industry peers in the Media industry. PERI has an excellent financial health rating, but there are some minor concerns on its profitability. PERI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PERI has reported negative net income.
PERI had a positive operating cash flow in the past year.
Each year in the past 5 years PERI has been profitable.
In the past 5 years PERI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.38%, PERI is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
PERI has a Return On Equity of 1.74%. This is in the better half of the industry: PERI outperforms 61.46% of its industry peers.
PERI has a worse Return On Invested Capital (0.43%) than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PERI is above the industry average of 6.73%.
The 3 year average ROIC (9.21%) 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 | 1.74% | ||
| ROIC | 0.43% |
ROA(3y)7.82%
ROA(5y)6.34%
ROE(3y)11.59%
ROE(5y)9.72%
ROIC(3y)9.21%
ROIC(5y)7.86%
1.3 Margins
PERI's Profit Margin of 2.53% is fine compared to the rest of the industry. PERI outperforms 66.67% of its industry peers.
PERI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 0.77%, PERI is doing worse than 61.46% of the companies in the same industry.
PERI's Operating Margin has declined in the last couple of years.
PERI's Gross Margin of 33.25% is in line compared to the rest of the industry. PERI outperforms 43.75% of 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 | 33.25% |
OM growth 3Y-56.79%
OM growth 5Y-35.41%
PM growth 3Y-32.1%
PM growth 5Y-12.49%
GM growth 3Y-1.27%
GM growth 5Y-2.76%
2. Health
2.1 Basic Checks
PERI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PERI has less shares outstanding
PERI has more shares outstanding than it did 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 2.92. This is not the best score and indicates that PERI is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of PERI (2.92) is better than 83.33% 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 | 2.92 |
ROIC/WACC0.05
WACC9.02%
2.3 Liquidity
A Current Ratio of 3.47 indicates that PERI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.47, PERI belongs to the best of the industry, outperforming 92.71% of the companies in the same industry.
A Quick Ratio of 3.47 indicates that PERI has no problem at all paying its short term obligations.
PERI's Quick ratio of 3.47 is amongst the best of the industry. PERI outperforms 92.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.47 | ||
| Quick Ratio | 3.47 |
3. Growth
3.1 Past
The earnings per share for PERI have decreased strongly by -107.08% in the last year.
Measured over the past years, PERI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.53% on average per year.
Looking at the last year, PERI shows a very negative growth in Revenue. The Revenue has decreased by -32.95% in the last year.
PERI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.76% yearly.
EPS 1Y (TTM)-107.08%
EPS 3Y-36.17%
EPS 5Y-14.53%
EPS Q2Q%-179.17%
Revenue 1Y (TTM)-32.95%
Revenue growth 3Y1.36%
Revenue growth 5Y13.76%
Sales Q2Q%-43.39%
3.2 Future
The Earnings Per Share is expected to grow by 26.52% on average over the next years. This is a very strong growth
Based on estimates for the next years, PERI will show a decrease in Revenue. The Revenue will decrease by -1.11% on average per year.
EPS Next Y-60.77%
EPS Next 2Y26.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.39%
Revenue Next 2Y-1.11%
Revenue Next 3YN/A
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 accelerating.
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 reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
PERI is valuated quite expensively with a Price/Forward Earnings ratio of 25.86.
PERI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. PERI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.86 |
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 | 7233.27 | ||
| EV/EBITDA | -4.79 |
4.3 Compensation for Growth
PERI's earnings are expected to grow with 26.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y26.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PERI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.76
-0.19 (-1.74%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners54.44%
Inst Owner Change0.45%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap484.63M
Analysts74.55
Price Target9.95 (-7.53%)
Short Float %2.43%
Short Ratio2.35
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)-53.33%
EPS NQ rev (3m)-33.55%
EPS NY rev (1m)-63.24%
EPS NY rev (3m)-54.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.2%
Revenue NY rev (1m)4.64%
Revenue NY rev (3m)-8.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.86 | ||
| P/S | 0.97 | ||
| P/FCF | 7233.27 | ||
| P/OCF | 69.84 | ||
| P/B | 0.67 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | -4.79 |
EPS(TTM)-0.17
EYN/A
EPS(NY)0.42
Fwd EY3.87%
FCF(TTM)0
FCFY0.01%
OCF(TTM)0.15
OCFY1.43%
SpS11.06
BVpS16.05
TBVpS9.04
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 1.74% | ||
| ROCE | 0.51% | ||
| ROIC | 0.43% | ||
| ROICexc | 0.84% | ||
| ROICexgc | 4.99% | ||
| OM | 0.77% | ||
| PM (TTM) | 2.53% | ||
| GM | 33.25% | ||
| FCFM | 0.01% |
ROA(3y)7.82%
ROA(5y)6.34%
ROE(3y)11.59%
ROE(5y)9.72%
ROIC(3y)9.21%
ROIC(5y)7.86%
ROICexc(3y)26.98%
ROICexc(5y)21.2%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)11.06%
ROCE(5y)9.44%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-48.86%
ROICexc growth 3Y-64.77%
ROICexc growth 5Y-39.92%
OM growth 3Y-56.79%
OM growth 5Y-35.41%
PM growth 3Y-32.1%
PM growth 5Y-12.49%
GM growth 3Y-1.27%
GM growth 5Y-2.76%
F-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 41.82% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 296.69 | ||
| Cash Conversion | 34.2% | ||
| Profit Quality | 0.53% | ||
| Current Ratio | 3.47 | ||
| Quick Ratio | 3.47 | ||
| Altman-Z | 2.92 |
F-Score5
WACC9.02%
ROIC/WACC0.05
Cap/Depr(3y)18.51%
Cap/Depr(5y)13.33%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.39%
Profit Quality(3y)85.68%
Profit Quality(5y)130.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-107.08%
EPS 3Y-36.17%
EPS 5Y-14.53%
EPS Q2Q%-179.17%
EPS Next Y-60.77%
EPS Next 2Y26.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-32.95%
Revenue growth 3Y1.36%
Revenue growth 5Y13.76%
Sales Q2Q%-43.39%
Revenue Next Year-14.39%
Revenue Next 2Y-1.11%
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-99.96%
FCF growth 3Y-90.17%
FCF growth 5Y-72.61%
OCF growth 1Y-95.54%
OCF growth 3Y-53.96%
OCF growth 5Y-31.1%