NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- PERI's revenue growth trails the industry average of 24.8%. Since the same quarter one year prior, revenues rose by 12.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- PERI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.
- PERION NETWORK LTD has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, PERION NETWORK LTD increased its bottom line by earning $0.85 versus $0.83 in the prior year.
- The gross profit margin for PERION NETWORK LTD is currently very high, coming in at 95.80%. Regardless of PERI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PERI's net profit margin of 0.20% is significantly lower than the same period one year prior.
Perion Network Ltd., together with its subsidiaries, designs, develops, and markets content and media products to the consumer and home markets. The company has a P/E ratio of 6.8, equal to the average computer software & services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Perion Network has a market cap of $47.8 million and is part of the
industry. Shares are up 29.9% year to date as of the close of trading on Wednesday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet RatingsStaff