PERI Stock Review

Overview of the Company

• Ticker Symbol: PERI (Perion Network)
• Business Type: Global technology company providing advertising solutions
• Founded: November 1999 by Offa Adler and Yaron Adler
• Headquarters: Israel
• Main Operations: North America, Europe, and others
• Key Solutions: Publisher platform, search monetization, cookie-less targeting, high-impact creative, actionable monitoring

Review Content

Topics Covered

• Balance sheet analysis
• Insider trading overview (buying/selling trends)
• Revenue and margins assessment
• Profitability score and sentiment analysis
• Solvency assessment (bankruptcy likelihood)
• Company growth rate
• Breaking news related to the stock
• In-depth company exploration through investor news

Market Performance

• Market Cap: $1.47 billion (small company)
• Price Range:
  • High Today: $31.56
  • 52-week High: $42.75
  • Low Today: $30.84
  • 52-week Low: $24.10
• P/E Ratio: $12.54 (indicates profitability)
• Dividend: None (growth stock)
• Average Volume: 486,000 (currently below average)

Financials

Balance Sheet

• Assets: $904 million
• Liabilities: $267 million (no long-term debt)
• Cash: Most funds in cash
• Solvency Score: 74% (indicates low bankruptcy risk)

Revenue and Profitability

• Recent Revenue: $692 million (up 5%)
• Operating Income: Flat but with upward projections
• Net Income: Up 2%
• Free Cash Flow: Up 19%
• Gross Margins: 38% (increasing from 37%)
• Profitability Score: 67 (indicates good profitability metrics)

Stock Sentiment

• Analyst Rating: Morningstar (strong buy), but cautioned against bias
• Investor Sentiment: Mostly positive over last 90 days, slight negativity in last week
• Insider Trading: No recent measurable trading, last transaction in 2008
• Short Interest: 5% (not excessive, no imminent short squeeze)

Concerns and Considerations

• Valuation Trap: Appears inexpensive but may not reach intrinsic value over time
• Competition: Margins are lower than competitors like Google (38% vs. 56%)
• Website Quality: Poor design reflects management quality concerns

Conclusion

• Investment Decision: Currently a watch list item; not recommended for investment due to lack of uniqueness, proprietary technology, and concerns about the website and management.
• Recommendation: Prefer Google over Perion Network as an investment in the advertising sector.
• Future Actions: Monitor developments; keep an eye on improvements in management and execution.