PERION NETWORK LTD (PERI) Stock Fundamental Analysis
NASDAQ:PERI - Nasdaq - IL0010958192 - Common Stock - Currency: USD
Overall PERI gets a fundamental rating of 5 out of 10. We evaluated PERI against 98 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
PERI had positive earnings in the past year.
In the past year PERI had a positive cash flow from operations.
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
The Return On Assets of PERI (1.38%) is better than 66.33% of its industry peers.
Looking at the Return On Equity, with a value of 1.74%, PERI is in the better half of the industry, outperforming 62.24% of the companies in the same industry.
With a Return On Invested Capital value of 0.43%, PERI is not doing good in the industry: 60.20% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for PERI is above the industry average of 6.63%.
The last Return On Invested Capital (0.43%) for PERI is well below the 3 year average (9.21%), which needs to be investigated, but indicates that PERI had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 2.53%, PERI is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
PERI's Profit Margin has declined in the last couple of years.
PERI has a Operating Margin of 0.77%. This is in the lower half of the industry: PERI underperforms 61.22% of its industry peers.
PERI's Operating Margin has declined in the last couple of years.
PERI has a Gross Margin (33.25%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PERI is creating some value.
The number of shares outstanding for PERI has been reduced compared to 1 year ago.
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 2.69. 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.
PERI has a better Altman-Z score (2.69) than 81.63% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.05
WACC9.03%
2.3 Liquidity
A Current Ratio of 3.47 indicates that PERI has no problem at all paying its short term obligations.
PERI has a Current ratio of 3.47. This is amongst the best in the industry. PERI outperforms 92.86% of its industry peers.
PERI has a Quick Ratio of 3.47. This indicates that PERI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.47, PERI belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| 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 -90.15% in the last year.
The earnings per share for PERI have been decreasing by -14.53% on average. This is quite bad
PERI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -32.96%.
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
PERI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.05% yearly.
PERI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.93% yearly.
EPS Next Y6.71%
EPS Next 2Y26.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-17.88%
Revenue Next 2Y-5.93%
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
With a Price/Earnings ratio of 35.77, PERI can be considered very expensive at the moment.
PERI's Price/Earnings ratio is a bit cheaper when compared to the industry. PERI is cheaper than 60.20% of the companies in the same industry.
PERI is valuated rather expensively when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
PERI is valuated quite expensively with a Price/Forward Earnings ratio of 33.52.
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 20.86, PERI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.77 | ||
| Fwd PE | 33.52 |
4.2 Price Multiples
PERI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6251.81 | ||
| EV/EBITDA | -8.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PERI's earnings are expected to grow with 26.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.33
PEG (5Y)N/A
EPS Next 2Y26.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PERI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.3
-0.18 (-1.9%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners54.44%
Inst Owner Change-1.77%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap418.87M
Analysts74.55
Price Target9.95 (6.99%)
Short Float %2.82%
Short Ratio2.54
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)7.69%
EPS NQ rev (3m)2.7%
EPS NY rev (1m)70%
EPS NY rev (3m)30.77%
Revenue NQ rev (1m)4.2%
Revenue NQ rev (3m)-8.2%
Revenue NY rev (1m)-2.33%
Revenue NY rev (3m)-12.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.77 | ||
| Fwd PE | 33.52 | ||
| P/S | 0.84 | ||
| P/FCF | 6251.81 | ||
| P/OCF | 60.36 | ||
| P/B | 0.58 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | -8.46 |
EPS(TTM)0.26
EY2.8%
EPS(NY)0.28
Fwd EY2.98%
FCF(TTM)0
FCFY0.02%
OCF(TTM)0.15
OCFY1.66%
SpS11.06
BVpS16.05
TBVpS9.04
PEG (NY)5.33
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 | 2.69 |
F-Score5
WACC9.03%
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)-90.15%
EPS 3Y-36.17%
EPS 5Y-14.53%
EPS Q2Q%-85.9%
EPS Next Y6.71%
EPS Next 2Y26.05%
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-17.88%
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-99.96%
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%