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

Fundamentals

Very undervalued with adequate 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


Market Performance


7 Day Return

12.3%

PERI

1.6%

US Media

0.4%

US Market


1 Year Return

76.9%

PERI

16.4%

US Media

6.9%

US Market

Return vs Industry: PERI exceeded the US Media industry which returned 16.4% over the past year.

Return vs Market: PERI exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

PERIIndustryMarket
7 Day12.3%1.6%0.4%
30 Day10.3%-0.3%-1.1%
90 Day18.5%-0.03%-0.5%
1 Year76.9%76.9%17.9%16.4%9.3%6.9%
3 Year51.3%51.3%30.2%25.0%45.8%36.4%
5 Year-71.3%-71.3%41.5%30.2%62.9%45.1%

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 ($5.13) is trading below our estimate of fair value ($13.06)

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 (11.8x) compared to the Media industry average (12.6x).

PE vs Market: PERI is good value based on its PE Ratio (11.8x) compared to the US market (17.6x).


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 (0.9x) compared to the US Media industry average (1.3x).


Next Steps

Future Growth

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

30.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PERI's forecast earnings growth (30.7% per year) is above the savings rate (2.7%).

Earnings vs Market: PERI's earnings (30.7% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: PERI's revenue (5.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PERI's revenue (5.2% 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


Next Steps

Past Performance

How has Perion Network performed over the past 5 years?

-27.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PERI's earnings have declined by -27% per year over the past 5 years.

Accelerating Growth: PERI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PERI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (-35.1%).


Return on Equity

High ROE: PERI's Return on Equity (7.3%) is considered low.


Return on Assets

ROA vs Industry: PERI has a higher Return on Assets than the Media industry average last year.


Return on Capital Employed

ROCE Improving: PERI has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Perion Network's financial position?


Financial Position Analysis

Short Term Liabilities: PERI's short term assets ($86.0M) exceeds its short term liabilities ($65.7M)

Long Term Liabilities: PERI's short term assets (86.0M) exceeds its long term liabilities (40.7M)


Debt to Equity History and Analysis

Debt Level: PERI's debt to equity ratio (13.5%) is considered satisfactory

Reducing Debt: PERI's debt to equity ratio has increased from 2.6% to 13.5% over the past 5 years.

Debt Coverage: PERI's debt is well covered by operating cash flow (181.1%).

Interest Coverage: PERI's interest payments on its debt are not well covered by EBIT (2.8x coverage).


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 4.127970x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Perion Network's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Doron Gerstel (59yo)

2.5yrs

Tenure

US$1,226,000

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 ($USD1.23M) is about average for companies of similar size in the US market ($USD489.74K).

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


Management Age and Tenure

3.5yrs

Average Tenure

50yo

Average Age

Experienced Management: PERI's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

59yo

Average Age

Experienced Board: PERI's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: PERI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,550,81116 Sep 19
Ronen Shilo
EntityIndividual
Shares375,329
Max PriceUS$6.80
SellUS$2,970,00030 Jan 19
Dror Erez
EntityIndividual
Role
Member of the Board of Directors
Director
Shares900,000
Max PriceUS$3.30

Ownership Breakdown


Management Team

  • Doron Gerstel (59yo)

    CEO & Director

    • Tenure: 2.5yrs
    • Compensation: US$1.23m
  • Ran Cohen (48yo)

    Senior Vice President of Product

    • Tenure: 1.8yrs
    • Compensation: US$607.00k
  • Joanna Bailey

    Global Chief Revenue Officer of Growmobile

    • Tenure: 4.5yrs
  • Amir Nahmias (50yo)

    General Manager of CodeFuel Business Unit

    • Tenure: 4.8yrs
    • Compensation: US$1.10m
  • Miki Kolko (56yo)

    Chief Technology Officer

    • Tenure: 4.8yrs
    • Compensation: US$557.00k
  • Maoz Sigron (41yo)

    Chief Financial Officer

    • Tenure: 1.7yrs
  • Roy Sgan-Cohen

    Senior Vice President of R&D

    • Tenure: 0yrs
  • Adi Mates

    Vice President of Human Resource

    • Tenure: 0yrs

Board Members

  • Eyal Kaplan (59yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
  • Doron Gerstel (59yo)

    CEO & Director

    • Tenure: 2.5yrs
    • Compensation: US$1.23m
  • Rami Schwartz (61yo)

    Independent Director

    • Tenure: 0yrs
  • Sarit Firon (52yo)

    External Independent Director

    • Tenure: 2.8yrs
  • Mike Vorhaus (61yo)

    Independent Director

    • Tenure: 4.5yrs
  • Dror Erez (50yo)

    Director

    • Tenure: 5.8yrs

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$132.611m
  • Shares outstanding: 25.85m
  • 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 solutio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:51
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.