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Perficient

Nasdaq:PRFT
Snowflake Description

Proven track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PRFT
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Perficient, Inc. provides information technology and management consulting services in the United States. The last earnings update was 16 days ago. More info.


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PRFT Share Price and Events
7 Day Returns
-0.5%
NasdaqGS:PRFT
-0.2%
US IT
-1%
US Market
1 Year Returns
29.8%
NasdaqGS:PRFT
21.4%
US IT
-0.4%
US Market
PRFT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Perficient (PRFT) -0.5% -0.6% 12.7% 29.8% 76.1% 106.4%
US IT -0.2% -2% 6.8% 21.4% 90.4% 115.5%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • PRFT outperformed the IT industry which returned 21.4% over the past year.
  • PRFT outperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
PRFT
Industry
5yr Volatility vs Market

PRFT Value

 Is Perficient undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Perficient to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Perficient.

NasdaqGS:PRFT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:PRFT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.959 (1 + (1- 21%) (13.07%))
1.039
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.039 * 5.96%)
8.92%

Discounted Cash Flow Calculation for NasdaqGS:PRFT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Perficient is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:PRFT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.92%)
2020 70.00 Analyst x1 64.27
2021 74.95 Est @ 7.08% 63.18
2022 79.28 Est @ 5.77% 61.35
2023 83.13 Est @ 4.86% 59.06
2024 86.64 Est @ 4.22% 56.51
2025 89.91 Est @ 3.77% 53.84
2026 93.02 Est @ 3.46% 51.14
2027 96.04 Est @ 3.24% 48.47
2028 99.00 Est @ 3.09% 45.88
2029 101.95 Est @ 2.98% 43.38
Present value of next 10 years cash flows $547.07
NasdaqGS:PRFT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $101.95 × (1 + 2.73%) ÷ (8.92% – 2.73%)
$1,691.47
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,691.47 ÷ (1 + 8.92%)10
$719.64
NasdaqGS:PRFT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $547.07 + $719.64
$1,266.71
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,266.71 / 32.84
$38.57
NasdaqGS:PRFT Discount to Share Price
Calculation Result
Value per share (USD) From above. $38.57
Current discount Discount to share price of $35.25
= -1 x ($35.25 - $38.57) / $38.57
8.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Perficient is available for.
Intrinsic value
9%
Share price is $35.25 vs Future cash flow value of $38.57
Current Discount Checks
For Perficient to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Perficient's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Perficient's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Perficient's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Perficient's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:PRFT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.93
NasdaqGS:PRFT Share Price ** NasdaqGS (2019-08-16) in USD $35.25
United States of America IT Industry PE Ratio Median Figure of 74 Publicly-Listed IT Companies 33.89x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Perficient.

NasdaqGS:PRFT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:PRFT Share Price ÷ EPS (both in USD)

= 35.25 ÷ 0.93

38.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Perficient is overvalued based on earnings compared to the US IT industry average.
  • Perficient is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Perficient's expected growth come at a high price?
Raw Data
NasdaqGS:PRFT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 38.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
14.1%per year
United States of America IT Industry PEG Ratio Median Figure of 63 Publicly-Listed IT Companies 2.49x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NasdaqGS:PRFT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 38.11x ÷ 14.1%

2.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Perficient is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Perficient's assets?
Raw Data
NasdaqGS:PRFT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $11.39
NasdaqGS:PRFT Share Price * NasdaqGS (2019-08-16) in USD $35.25
United States of America IT Industry PB Ratio Median Figure of 125 Publicly-Listed IT Companies 4.17x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NasdaqGS:PRFT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:PRFT Share Price ÷ Book Value per Share (both in USD)

= 35.25 ÷ 11.39

3.09x

* Primary Listing of Perficient.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Perficient is good value based on assets compared to the US IT industry average.
X
Value checks
We assess Perficient's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Perficient has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PRFT Future Performance

 How is Perficient expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Perficient expected to grow at an attractive rate?
  • Perficient's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Perficient's earnings growth is expected to exceed the United States of America market average.
  • Perficient's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:PRFT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:PRFT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 14.1%
NasdaqGS:PRFT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 7.9%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.9%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:PRFT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:PRFT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 666 76 41 1
2020-12-31 602 72 40 6
2019-12-31 563 67 34 6
NasdaqGS:PRFT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 531 63 29
2019-03-31 511 64 27
2018-12-31 498 69 25
2018-09-30 488 68 24
2018-06-30 500 60 24
2018-03-31 495 46 21
2017-12-31 485 55 19
2017-09-30 468 54 16
2017-06-30 458 59 14
2017-03-31 460 72 18
2016-12-31 487 63 20
2016-09-30 482 58 24

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Perficient's earnings are expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).
  • Perficient's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:PRFT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Perficient Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PRFT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.28 1.28 1.28 1.00
2020-12-31 1.23 1.31 1.15 5.00
2019-12-31 1.05 1.07 0.99 5.00
NasdaqGS:PRFT Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.93
2019-03-31 0.83
2018-12-31 0.76
2018-09-30 0.72
2018-06-30 0.74
2018-03-31 0.63
2017-12-31 0.56
2017-09-30 0.48
2017-06-30 0.43
2017-03-31 0.52
2016-12-31 0.60
2016-09-30 0.72

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Perficient is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Perficient's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Perficient has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PRFT Past Performance

  How has Perficient performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Perficient's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Perficient's year on year earnings growth rate has been positive over the past 5 years.
  • Perficient's 1-year earnings growth exceeds its 5-year average (21% vs 1.2%)
  • Perficient's earnings growth has exceeded the US IT industry average in the past year (21% vs 9.8%).
Earnings and Revenue History
Perficient's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Perficient Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:PRFT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 531.32 29.34 127.54
2019-03-31 511.25 26.66 122.27
2018-12-31 498.38 24.56 118.48
2018-09-30 487.78 23.52 115.25
2018-06-30 499.95 24.24 113.00
2018-03-31 495.18 20.80 111.25
2017-12-31 485.26 18.58 108.19
2017-09-30 467.83 15.84 103.37
2017-06-30 458.24 14.36 100.77
2017-03-31 460.34 17.76 100.23
2016-12-31 486.98 20.46 101.26
2016-09-30 481.93 24.34 104.17
2016-06-30 484.66 26.17 103.41
2016-03-31 470.18 24.35 102.63
2015-12-31 458.09 23.01 99.96
2015-09-30 450.21 21.86 97.42
2015-06-30 445.51 21.79 95.94
2015-03-31 453.08 24.18 93.56
2014-12-31 439.44 23.16 90.20
2014-09-30 410.98 22.25 85.70
2014-06-30 391.00 22.18 84.00
2014-03-31 368.89 20.35 80.41
2013-12-31 356.81 21.43 77.60
2013-09-30 343.54 20.30 73.04
2013-06-30 334.75 18.20 70.22
2013-03-31 322.37 17.24 67.93
2012-12-31 311.74 16.11 64.85
2012-09-30 298.18 14.45 62.45

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Perficient has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Perficient used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Perficient's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Perficient's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Perficient has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PRFT Health

 How is Perficient's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Perficient's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Perficient is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Perficient's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Perficient's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Perficient Company Filings, last reported 1 month ago.

NasdaqGS:PRFT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 359.15 122.34 34.28
2019-03-31 349.81 121.20 27.73
2018-12-31 353.68 120.07 44.98
2018-09-30 355.00 119.04 44.95
2018-06-30 373.75 56.00 10.36
2018-03-31 369.69 56.00 5.48
2017-12-31 366.35 55.00 6.31
2017-09-30 366.52 65.00 2.45
2017-06-30 359.48 68.00 5.69
2017-03-31 358.26 38.50 10.89
2016-12-31 359.47 32.00 10.11
2016-09-30 371.99 28.00 10.22
2016-06-30 363.48 36.00 9.49
2016-03-31 355.63 56.00 9.02
2015-12-31 348.81 56.00 8.81
2015-09-30 336.34 61.00 8.69
2015-06-30 325.48 60.00 6.84
2015-03-31 320.28 67.50 6.35
2014-12-31 304.73 54.00 10.94
2014-09-30 300.43 74.80 5.41
2014-06-30 289.40 71.00 6.63
2014-03-31 277.12 50.00 4.73
2013-12-31 259.49 19.00 7.02
2013-09-30 250.59 16.00 5.44
2013-06-30 243.37 20.30 4.68
2013-03-31 239.61 6.00 4.15
2012-12-31 234.41 2.80 5.81
2012-09-30 232.89 11.50 3.48
  • Perficient's level of debt (34.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (24.5% vs 34.1% today).
  • Debt is well covered by operating cash flow (51.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.4x coverage).
X
Financial health checks
We assess Perficient's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Perficient has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PRFT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Perficient dividends.
If you bought $2,000 of Perficient shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Perficient's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Perficient's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:PRFT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:PRFT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Perficient has not reported any payouts.
  • Unable to verify if Perficient's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Perficient's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Perficient has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Perficient's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Perficient afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Perficient has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PRFT Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Davis
COMPENSATION $5,154,291
AGE 55
TENURE AS CEO 9.9 years
CEO Bio

Mr. Jeffrey S. Davis, also known as Jeff, has been the Chief Executive Officer of Perficient, Inc. since September 1, 2009 and has been its President since 2004. Mr. Davis served as Chief Operating Officer of Perficient, Inc. since April 2002. He served as Chief Operating Officer at Vertecon since October 1999. He has 13 years of experience in technology management and consulting. Prior to Vertecon, he served as Senior Manager and member of the leadership team in Arthur Andersen's Business Consulting Practice starting in January 1999 where he was responsible for defining and managing internal processes, while managing business development and delivery of products, services and solutions to a number of large accounts. Mr. Davis served at Ernst & Young for two years, Mallinckrodt, Inc. for two years and spent five years at McDonnel Douglas in many different technical and managerial positions. He has been the Chairman at Perficient, Inc. since February 2017. He has been a Director of Perficient, Inc. since September 1, 2009. Mr. Davis has a M.B.A. from Washington University and a B.S. degree in Electrical Engineering from the University of Missouri. Mr. Davis is an active volunteer member of the board of directors of the Cystic Fibrosis Foundation of St. Louis and a member of the University of Missouri Trulaske College of Business advisory board.

CEO Compensation
  • Jeff's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jeff's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Perficient management team in years:

2.1
Average Tenure
55
Average Age
  • The tenure for the Perficient management team is about average.
Management Team

Jeff Davis

TITLE
Chairman
COMPENSATION
$5M
AGE
55
TENURE
9.9 yrs

Paul Martin

TITLE
CFO, Treasurer & Secretary
COMPENSATION
$2M
AGE
58
TENURE
13 yrs

Tom Hogan

TITLE
Chief Operating Officer
COMPENSATION
$962K
AGE
42
TENURE
0.8 yrs

Eric Roch

TITLE
CTO and Chief Strategist of IT Modernization & Integration

Bill Davis

TITLE
Vice President of Marketing & Communications

Patrick Schwierking

TITLE
Vice President of Sales & North America East Region
TENURE
2.1 yrs

Susan Adomite

TITLE
Vice President & Controller
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Perficient board of directors in years:

2.5
Average Tenure
58.5
Average Age
  • The average tenure for the Perficient board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jeff Davis

TITLE
Chairman
COMPENSATION
$5M
AGE
55
TENURE
2.5 yrs

David Lundeen

TITLE
Director
COMPENSATION
$118K
AGE
57
TENURE
21.3 yrs

Ralph Derrickson

TITLE
Director
COMPENSATION
$105K
AGE
60
TENURE
15.1 yrs

James Kackley

TITLE
Lead Director
COMPENSATION
$132K
AGE
77
TENURE
2.5 yrs

Brian Matthews

TITLE
Director
COMPENSATION
$80K
AGE
61
TENURE
2.3 yrs

Gary Wimberly

TITLE
Independent Director
COMPENSATION
$187K
AGE
57
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • Perficient individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. Aug 19 Sell James Kackley Individual 07. Aug 19 08. Aug 19 -7,928 $35.59 $-281,840
14. Mar 19 Buy Gary Wimberly Individual 12. Mar 19 12. Mar 19 861 $28.86 $24,848
05. Mar 19 Sell Paul Martin Individual 02. Mar 19 04. Mar 19 -21,370 $29.20 $-621,484
05. Mar 19 Sell Thomas Hogan Individual 02. Mar 19 05. Mar 19 -15,593 $29.20 $-452,389
05. Mar 19 Sell Jeffrey Davis Individual 02. Mar 19 04. Mar 19 -57,676 $29.20 $-1,677,846
17. Dec 18 Buy David Lundeen Individual 13. Dec 18 13. Dec 18 1,000 $23.60 $23,600
15. Nov 18 Buy James Kackley Individual 13. Nov 18 13. Nov 18 1,000 $25.16 $25,160
X
Management checks
We assess Perficient's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Perficient has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PRFT News

Simply Wall St News

Perficient, Inc. (NASDAQ:PRFT): Can Growth Justify Its July Share Price?

As Warren Buffett’s right-hand man Charlie Munger said, “No matter how wonderful a business is, it’s not worth an infinite price.” Perficient is available at price-to-earnings ratio of 42.19x, showing us it is overvalued compared to the US market average ratio of 18.03x , and overvalued based on current earnings compared to the IT industry average of 33.77x. … But, seeing as Perficient is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … This tells us that when we include its growth in our analysis Perficient's stock can be considered overvalued , based on the fundamentals.

Simply Wall St -

Has Perficient, Inc. (NASDAQ:PRFT) Improved Earnings Growth In Recent Times?

After reading Perficient, Inc.'s (NASDAQ:PRFT) most recent earnings announcement (31 March 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … I also compare against an industry benchmark to check whether Perficient's performance has been impacted by industry movements. … You should continue to research Perficient to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for PRFT’s future growth?

Simply Wall St -

Here's Why I Think Perficient (NASDAQ:PRFT) Is An Interesting Stock

View our latest analysis for Perficient How Quickly Is Perficient Increasing Earnings Per Share? … As a result, I'm encouraged by the fact that insiders own Perficient shares worth a considerable sum. … As I already mentioned, Perficient is a growing business, which is what I like to see.

Simply Wall St -

These 4 Measures Indicate That Perficient (NASDAQ:PRFT) Is Using Debt Reasonably Well

Either way, since Perficient does have more debt than cash, it's worth keeping an eye on its balance sheet. … When analysing debt levels, the balance sheet is the obvious place to start. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

How Does Investing In Perficient, Inc. (NASDAQ:PRFT) Impact The Volatility Of Your Portfolio?

In finance, Beta is a measure of volatility. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful.

Simply Wall St -

Do Perficient, Inc.’s (NASDAQ:PRFT) Returns On Capital Employed Make The Cut?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Perficient: 0.081 = US$42m ÷ (US$568m - US$55m) (Based on the trailing twelve months to March 2019.) So, Perficient has an ROCE of 8.1%.

Simply Wall St -

Should You Be Tempted To Sell Perficient, Inc. (NASDAQ:PRFT) Because Of Its P/E Ratio?

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Perficient: P/E of 39.33 = $32.69 ÷ $0.83 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. … The Verdict On Perficient's P/E Ratio Perficient has a P/E of 39.3.

Simply Wall St -

How Should Investors Feel About Perficient, Inc.'s (NASDAQ:PRFT) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … See our latest analysis for Perficient How Does Jeff Davis's Compensation Compare With Similar Sized Companies? … We compared the total CEO remuneration paid by Perficient, Inc., and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Estimating The Fair Value Of Perficient, Inc. (NASDAQ:PRFT)

(NASDAQ:PRFT) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $50.00 $67.00 $74.45 $80.86 $86.39 $91.24 $95.57 $99.53 $103.23 $106.76 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 11.12% Est @ 8.61% Est @ 6.84% Est @ 5.61% Est @ 4.75% Est @ 4.14% Est @ 3.72% Est @ 3.42% Present Value ($, Millions) Discounted @ 9.37% $45.72 $56.01 $56.91 $56.51 $55.21 $53.31 $51.05 $48.61 $46.10 $43.59 Present Value of 10-year Cash Flow (PVCF)= $513.03m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.4%.

Simply Wall St -

Introducing Perficient (NASDAQ:PRFT), A Stock That Climbed 69% In The Last Five Years

To wit, the Perficient share price has climbed 69% in five years, easily topping the market return of 41% (ignoring dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Perficient achieved compound earnings per share (EPS) growth of 4.4% per year.

Simply Wall St -

PRFT Company Info

Description

Perficient, Inc. provides information technology and management consulting services in the United States. The company designs, builds, and delivers solutions using middleware software products developed by third-party vendors. Its solutions include portals and collaboration, such as searchable data systems, collaborative systems for process improvement, transaction processing, unified and extended reporting, commerce, content management, and other services; and platform implementations services, including application server selection, architecture planning, installation and configuration, clustering for availability, performance assessment and issue remediation, security, and technology migrations. The company also offers management consulting services in the areas of organizational change management, business analytics, project management, process excellence, and other; and cloud services comprising architecture, business value and health checks assessments, strategy and road maps, and vendor evaluation and selection services. In addition, it provides digital marketing services, including search engine marketing, user experience and design, and conversion rate optimization; commerce solutions; and content management solutions. Further, the company offers business analytics; custom applications; business integration; business process management; customer relationship management; enterprise data and business intelligence; enterprise performance management; DevOps; and enterprise mobile solutions. It serves the healthcare, financial services, automotive and transportation, retail and consumer goods, manufacturing, electronics and computer hardware, telecommunications, business services and leisure, media and entertainment, and energy and utilities markets. Perficient, Inc. was founded in 1997 and is headquartered in St. Louis, Missouri.

Details
Name: Perficient, Inc.
PRFT
Exchange: NasdaqGS
Founded: 1997
$1,157,654,979
32,841,276
Website: http://www.perficient.com
Address: Perficient, Inc.
555 Maryville University Drive,
Suite 600,
St. Louis,
Missouri, 63141,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS PRFT Common Stock Nasdaq Global Select US USD 29. Jul 1999
DB PFS Common Stock Deutsche Boerse AG DE EUR 29. Jul 1999
Number of employees
Current staff
Staff numbers
3,060
Perficient employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 23:42
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/15
Last earnings filing: 2019/08/01
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.