Perion Network Ltd

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PERI : NASDAQ : Technology
$1.06 -0.01 | -0.93%
Today's Range: 1.05 - 1.14
Avg. Daily Volume: 171,100
10/28/16 - 4:00 PM ET

Financial Analysis

PERION NETWORK LTD's gross profit margin for the second 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 weak liquidity. Currently, the Quick Ratio is 0.94 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 26.80% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)78.048.57
EBITDA ($mil)8.7312.0
EBIT ($mil)2.429.79
Net Income ($mil)0.598.22

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)44.04127.9
Total Assets ($mil)404.14361.77
Total Debt ($mil)86.1739.29
Equity ($mil)200.09273.36

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin94.6997.11
EBITDA Margin11.1924.69
Operating Margin3.120.16
Sales Turnover0.680.73
Return on Assets-22.928.36
Return on Equity-43.9612.37
Debt Q2 FY16 Q2 FY15
Current Ratio1.212.92
Interest Expense2.320.0
Interest Coverage1.040.0

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)75.8169.2
Div / share0.00.0
Book value / share2.643.95
Institutional Own % n/a n/a
Avg Daily Volume181381.0146098.0


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 0.43 indicates a significant discount versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 5.74. 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 38.85   PERI 24.09 Peers 25.20

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.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
PERI 2.86 Peers 24.14   PERI NA Peers 0.22

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 0.43 Peers 5.74   PERI -383.72 Peers -2.81

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 0.31 Peers 9.39   PERI 3.37 Peers 28.48

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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