NasdaqGS:PERI

Stock Analysis Report

Executive Summary

Perion Network Ltd., a technology company, delivers advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally.


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has Perion Network's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PERI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.2%

PERI

-4.2%

US Media

-1.1%

US Market


1 Year Return

44.3%

PERI

-17.5%

US Media

-13.6%

US Market

Return vs Industry: PERI exceeded the US Media industry which returned -17.5% over the past year.

Return vs Market: PERI exceeded the US Market which returned -13.6% over the past year.


Shareholder returns

PERIIndustryMarket
7 Day-13.2%-4.2%-1.1%
30 Day-40.4%-21.5%-17.8%
90 Day-34.9%-27.5%-22.5%
1 Year44.3%44.3%-16.3%-17.5%-11.9%-13.6%
3 Year-26.6%-26.6%-16.7%-20.3%12.1%4.9%
5 Year-62.7%-62.7%-3.8%-11.4%30.5%16.3%

Price Volatility Vs. Market

How volatile is Perion Network's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Perion Network undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PERI ($4.27) is trading below our estimate of fair value ($27.5)

Significantly Below Fair Value: PERI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PERI is good value based on its PE Ratio (8.6x) compared to the Media industry average (9.5x).

PE vs Market: PERI is good value based on its PE Ratio (8.6x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: PERI is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: PERI is good value based on its PB Ratio (0.7x) compared to the US Media industry average (0.9x).


Next Steps

Future Growth

How is Perion Network forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PERI's forecast earnings growth (24.3% per year) is above the savings rate (1.7%).

Earnings vs Market: PERI's earnings (24.3% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PERI's revenue (10.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: PERI's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PERI's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Perion Network performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PERI has high quality earnings.

Growing Profit Margin: PERI's current net profit margins (4.9%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: PERI has become profitable over the past 5 years, growing earnings by 0.3% per year.

Accelerating Growth: PERI's earnings growth over the past year (58.8%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: PERI earnings growth over the past year (58.8%) exceeded the Media industry 6%.


Return on Equity

High ROE: PERI's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is Perion Network's financial position?


Financial Position Analysis

Short Term Liabilities: PERI's short term assets ($115.1M) exceed its short term liabilities ($83.3M).

Long Term Liabilities: PERI's short term assets ($115.1M) exceed its long term liabilities ($35.3M).


Debt to Equity History and Analysis

Debt Level: PERI's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: PERI's debt to equity ratio has reduced from 16.2% to 10.1% over the past 5 years.


Balance Sheet

Inventory Level: PERI has a low level of unsold assets or inventory.

Debt Coverage by Assets: PERI's debt is covered by short term assets (assets are 6.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PERI is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: PERI is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Perion Network's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PERI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PERI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PERI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PERI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PERI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Doron Gerstel (59yo)

3s

Tenure

US$2,278,000

Compensation

Mr. Doron Gerstel has been Chief Executive Officer at Perion Network Ltd. since April 2, 2017 and has been its Director since May 2018. He serves as Chief Executive Officer at Undertone Networks Inc. since ...


CEO Compensation Analysis

Compensation vs Market: Doron's total compensation ($USD2.28M) is above average for companies of similar size in the US market ($USD605.16K).

Compensation vs Earnings: Doron's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Doron Gerstel
CEO & Director3yrsUS$2.28mno data
Maoz Sigron
Chief Financial Officer2.17yrsUS$486.00kno data
Miki Kolko
Chief Technology Officer5.25yrsUS$562.00kno data
Ran Cohen
Senior Vice President of Product2.33yrsUS$534.00kno data
Tal Jacobson
General Manager of CodeFuel Business Unit1.42yrsUS$736.00kno data
Rami Rozen
Vice President of Investor Relationsno datano datano data
Adi Mates
Vice President of Human Resourceno datano datano data
Daniel Aks
President of Undertone0.67yrno datano data
Amir Nahmias
General Manager of CodeFuel Business Unit5.33yrsUS$1.10mno data
Joanna Bailey
Global Chief Revenue Officer of Growmobile5yrsno datano data

2.7yrs

Average Tenure

50yo

Average Age

Experienced Management: PERI's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Doron Gerstel
CEO & Director3yrsUS$2.28mno data
Eyal Kaplan
Independent Chairman of the Board1.92yrsno datano data
Joy Marcus
Independent Director0.42yrno datano data
Rami Schwartz
Independent Directorno datano datano data
Sarit Firon
External Independent Director3.25yrsno datano data
Michael Vorhaus
Independent Director5yrsno datano data
Dror Erez
Director6.25yrsno datano data

2.6yrs

Average Tenure

59yo

Average Age

Experienced Board: PERI's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Perion Network Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Perion Network Ltd.
  • Ticker: PERI
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Advertising
  • Sector: Media
  • Market Cap: US$130.606m
  • Shares outstanding: 26.71m
  • Website: https://www.perion.com

Number of Employees


Location

  • Perion Network Ltd.
  • Building A
  • 4th Floor
  • Holon
  • 5885849
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PERINasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDMar 2010
IW2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2010
PERITASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSMar 2010

Biography

Perion Network Ltd., a technology company, delivers advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. The company develops digital advertising solutions to capture consumer attention and drive engagement, as well as delivers ads across a portfolio of Websites and mobile applications. Its proprietary social marketing platform offers a dashboard for marketers that make media buying efficient on Facebook, Snapchat, Instagram, Twitter, and other social networks and platforms. The company’s platform allows advertisers to control their marketing expenditures, in-house planning and strategy, and utilize the technical tool to create operational marketing efficiencies. In addition, it provides search-based monetization solutions for publishers with analytics capabilities to track and monitor their business performance; Smilebox that enables people to tell the stories of their lives with customizable eCards, slideshows, invitations, and collages; and IncrediMail a messaging application that enables consumers to manage various email accounts in one place. The company was formerly known as IncrediMail Ltd. and changed its name to Perion Network Ltd. in November 2011. Perion Network Ltd. was incorporated in 1999 and is headquartered in Holon, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 00:10
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.