We assign a fundamental rating of 5 out of 10 to PRFT. PRFT was compared to 88 industry peers in the IT Services industry. PRFT has an excellent financial health rating, but there are some minor concerns on its profitability. PRFT has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

PRFT had positive earnings in the past year.
PRFT had a positive operating cash flow in the past year.
PRFT had positive earnings in each of the past 5 years.
In the past 5 years PRFT always reported a positive cash flow from operatings.

1.2 Ratios

PRFT has a better Return On Assets (6.72%) than 76.83% of its industry peers.
Looking at the Return On Equity, with a value of 13.10%, PRFT is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.01%, PRFT is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
PRFT had an Average Return On Invested Capital over the past 3 years of 11.11%. This is significantly below the industry average of 29.06%.

		Industry Rank	Sector Rank
ROA	6.72%
ROE	13.1%
ROIC	8.01%

ROA(3y)8.56%

ROA(5y)7.06%

ROE(3y)19.46%

ROE(5y)15.16%

ROIC(3y)11.11%

ROIC(5y)9.46%

1.3 Margins

PRFT has a better Profit Margin (8.48%) than 70.73% of its industry peers.
In the last couple of years the Profit Margin of PRFT has grown nicely.
PRFT has a better Operating Margin (12.79%) than 78.05% of its industry peers.
In the last couple of years the Operating Margin of PRFT has grown nicely.
Looking at the Gross Margin, with a value of 35.59%, PRFT is in line with its industry, outperforming 53.66% of the companies in the same industry.
PRFT's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	12.79%
PM (TTM)	8.48%
GM	35.59%

OM growth 3Y16.62%

OM growth 5Y15.01%

PM growth 3Y30.29%

PM growth 5Y17.2%

GM growth 3Y-1.05%

GM growth 5Y0.45%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PRFT is creating some value.
Compared to 1 year ago, PRFT has more shares outstanding
Compared to 1 year ago, PRFT has an improved debt to assets ratio.

2.2 Solvency

PRFT has an Altman-Z score of 4.99. This indicates that PRFT is financially healthy and has little risk of bankruptcy at the moment.
PRFT has a better Altman-Z score (4.99) than 76.83% of its industry peers.
The Debt to FCF ratio of PRFT is 3.89, which is a good value as it means it would take PRFT, 3.89 years of fcf income to pay off all of its debts.
PRFT has a Debt to FCF ratio (3.89) which is comparable to the rest of the industry.
PRFT has a Debt/Equity ratio of 0.70. This is a neutral value indicating PRFT is somewhat dependend on debt financing.
PRFT has a Debt to Equity ratio (0.70) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.7
Debt/FCF	3.89
Altman-Z	4.99

ROIC/WACC0.84

WACC9.55%

2.3 Liquidity

PRFT has a Current Ratio of 4.16. This indicates that PRFT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.16, PRFT belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
PRFT has a Quick Ratio of 4.16. This indicates that PRFT is financially healthy and has no problem in meeting its short term obligations.
PRFT has a better Quick ratio (4.16) than 90.24% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	4.16
Quick Ratio	4.16

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

PRFT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.08%.
Measured over the past years, PRFT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.66% on average per year.
PRFT shows a decrease in Revenue. In the last year, the revenue decreased by -4.40%.
Measured over the past years, PRFT shows a quite strong growth in Revenue. The Revenue has been growing by 12.71% on average per year.

EPS 1Y (TTM)-16.08%

EPS 3Y16.32%

EPS 5Y19.66%

EPS Q2Q%-8%

Revenue 1Y (TTM)-4.4%

Revenue growth 3Y13.99%

Revenue growth 5Y12.71%

Sales Q2Q%-3.59%

3.2 Future

PRFT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.14% yearly.
The Revenue is expected to grow by 3.39% on average over the next years.

EPS Next Y-2%

EPS Next 2Y3.33%

EPS Next 3Y4.14%

EPS Next 5YN/A

Revenue Next Year-0.6%

Revenue Next 2Y2.51%

Revenue Next 3Y3.39%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 21.10 indicates a rather expensive valuation of PRFT.
Based on the Price/Earnings ratio, PRFT is valued a bit cheaper than 68.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.87. PRFT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 18.01, PRFT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRFT indicates a somewhat cheap valuation: PRFT is cheaper than 71.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.96. PRFT is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	21.1
Fwd PE	18.01

4.2 Price Multiples

PRFT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRFT is on the same level as its industry peers.