Perion Network Ltd

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PERI : NASDAQ : Technology
$1.32 -0.02 | -1.50%
Today's Range: 1.31 - 1.36
Avg. Daily Volume: 176,300
07/29/16 - 11:10 AM ET

Financial Analysis

PERION NETWORK LTD's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. PERION NETWORK LTD has average liquidity. Currently, the Quick Ratio is 1.16 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 24.70% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)75.7952.14
EBITDA ($mil)6.7520.83
EBIT ($mil)-0.5918.61
Net Income ($mil)-5.6110.74

Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)48.76119.97
Total Assets ($mil)406.9359.12
Total Debt ($mil)92.4737.05
Equity ($mil)197.63262.49

Profitability Q1 FY16 Q1 FY15
Gross Profit Margin94.6697.09
EBITDA Margin8.9139.96
Operating Margin-0.7735.69
Sales Turnover0.60.91
Return on Assets-20.8911.06
Return on Equity-41.1916.2
Debt Q1 FY16 Q1 FY15
Current Ratio1.372.6
Interest Expense3.140.0
Interest Coverage-0.190.0

Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)75.8169.2
Div / share0.00.0
Book value / share2.613.79
Institutional Own % n/a n/a
Avg Daily Volume143306.069917.0


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.46 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.44. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, PERION NETWORK LTD proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
PERI NM Peers 39.31   PERI 9.02 Peers 26.21

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

PERI's P/E is negative making this valuation measure meaningless.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

PERI is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
PERI 2.64 Peers 20.61   PERI NA Peers 0.25

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

PERI is trading at a significant discount to its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
PERI 0.46 Peers 5.44   PERI -303.63 Peers 35.70

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

PERI is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, PERI is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
PERI 0.37 Peers 8.94   PERI -24.98 Peers 26.18

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

PERI is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

PERI significantly trails its peers on the basis of sales growth



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