NasdaqGS:PERI

Stock Analysis Report

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Market Cap

US$643.5m

Last Updated

2021/06/25 01:36 UTC

Data Sources

Company Financials +

Executive Summary

Perion Network Ltd. delivers advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PERI's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

16.5%

PERI

0.9%

US Media

1.3%

US Market


1 Year Return

253.3%

PERI

47.2%

US Media

42.4%

US Market

Return vs Industry: PERI exceeded the US Media industry which returned 44.9% over the past year.

Return vs Market: PERI exceeded the US Market which returned 42.6% over the past year.


Shareholder returns

PERIIndustryMarket
7 Day16.5%0.9%1.3%
30 Day16.3%1.7%2.8%
90 Day11.8%3.5%7.2%
1 Year253.3%253.3%48.9%47.2%44.7%42.4%
3 Year465.8%465.8%67.1%60.0%64.6%54.4%
5 Year432.5%432.5%81.2%68.4%126.8%101.3%

Long-Term 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?

14.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PERI ($19.47) is trading below our estimate of fair value ($22.31)

Significantly Below Fair Value: PERI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PERI is poor value based on its PE Ratio (44.9x) compared to the US Media industry average (20x).

PE vs Market: PERI is poor value based on its PE Ratio (44.9x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: PERI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: PERI is overvalued based on its PB Ratio (2.5x) compared to the US Media industry average (2.1x).


Future Growth

How is Perion Network forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

42.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PERI's forecast earnings growth (42% per year) is above the savings rate (2%).

Earnings vs Market: PERI's earnings (42% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: PERI's revenue (13.7% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: PERI's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PERI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Perion Network performed over the past 5 years?

55.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PERI has high quality earnings.

Growing Profit Margin: PERI's current net profit margins (3.5%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: PERI has become profitable over the past 5 years, growing earnings by 55.2% per year.

Accelerating Growth: PERI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PERI had negative earnings growth (-6.1%) over the past year, making it difficult to compare to the Media industry average (25.4%).


Return on Equity

High ROE: PERI's Return on Equity (4.9%) is considered low.


Financial Health

How is Perion Network's financial position?


Financial Position Analysis

Short Term Liabilities: PERI's short term assets ($190.8M) exceed its short term liabilities ($117.8M).

Long Term Liabilities: PERI's short term assets ($190.8M) exceed its long term liabilities ($29.8M).


Debt to Equity History and Analysis

Debt Level: PERI is debt free.

Reducing Debt: PERI has no debt compared to 5 years ago when its debt to equity ratio was 46.7%.

Debt Coverage: PERI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PERI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Perion Network 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 recent payouts.

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

3.0yrs

Average management tenure


CEO

Doron Gerstel (60 yo)

4.17yrs

Tenure

US$2,383,000

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 ($USD2.38M) is about average for companies of similar size in the US market ($USD2.39M).

Compensation vs Earnings: Doron's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PERI's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: PERI's board of directors are considered experienced (3.1 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.7%.


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$643.518m
  • Shares outstanding: 33.85m
  • Website: https://www.perion.com

Number of Employees


Location

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

Listings


Biography

Perion Network Ltd. delivers advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. It provides Wildfire, a content monetization platform; search monetizat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/25 01:36
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.