One-glance verdict
Undervalued
$37.59 our estimate vs market $8.94
Wall Street consensus: $13.00 (-65.4% lower than our fair-value estimate)
76% below our estimate, below the bear case
Fundamentals snapshot
Perion Network Ltd.
PERI · NMS · Communication Services · Internet Content & Information
Current price
$8.94
52-week range
$7.63 - $11.27
Market cap
$369.25M
Balance sheet
Healthy
-20.30x Concerning
Net cash $245.73M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 16.2% to -7.6% over 3 years.
- Risk Insider ownership is only 0.2% (peer median: 3.3%).
- Risk Return on equity was -2.0% last year — the company lost money on shareholders' equity.
What this company does
Perion Network Ltd.
Perion Network provides the technology that powers digital ads, connecting companies that want to advertise with websites and search engines that have ad space to sell. The company primarily makes money by taking a share of the ad spending that flows through its systems, meaning its success depends on the continued growth of online advertising. This business is important as more and more commerce moves online, increasing the need for brands to reach customers digitally.
How the company got here
Perion started in 1999 and was originally known as IncrediMail. Over the years, it has transformed into a global advertising technology company through numerous acquisitions. Key purchases included companies specializing in video, content, and most recently, in-store retail media, which have expanded its advertising capabilities. This series of acquisitions has been central to its strategy of building a comprehensive set of digital advertising tools.
What it actually does
Perion provides technology and services for digital advertising. Think of it as a company that helps businesses place their ads in front of the right people, whether that's on a website, a mobile app, a connected TV, or even a screen in a store. They offer a unified platform called Perion One that lets advertisers plan, run, and track their ad campaigns across various digital channels. The company uses artificial intelligence (AI) to help make these ad campaigns more effective.
Search Advertising
This part of the business helps companies get their ads seen when people use search engines. Perion has a long-standing partnership with Microsoft's search engine, Bing. When a user searches for something, Perion's technology helps place relevant ads alongside the search results. This is a significant part of Perion's business, where advertisers pay to have their websites or products appear for specific search queries.
Display and Video Advertising
This segment focuses on the visual ads you see across the internet, like banner ads on websites and video ads that play before or during online videos. Perion's technology helps create eye-catching ads and places them on websites and apps where they are most likely to be seen by the target audience. Advertisers pay Perion to create and distribute these visual campaigns to build brand awareness and drive sales.
Connected TV (CTV) and Digital Out-of-Home (DOOH)
This is a growing part of Perion's business that places ads on streaming services and digital screens in public places. CTV advertising refers to ads shown on smart TVs and streaming devices, a fast-growing alternative to traditional TV commercials. DOOH (Digital Out-of-Home) involves placing ads on digital billboards and screens in places like shopping malls, airports, and doctor's offices. Companies pay Perion to get their ads on these modern platforms to reach consumers where they are increasingly spending their time.
Retail Media
This segment helps retailers use their own websites and physical stores as advertising space. For example, Perion's technology can help a brand place a promotional ad on a large grocery store's website or on screens inside the physical store. With the recent acquisition of PRN, Perion has expanded its ability to place ads at the point-of-purchase in major retail chains. Brands pay for this service to influence shoppers right before they make a buying decision.
What management is betting on now
Perion's main focus is on its unified 'Perion One' platform, which integrates all its advertising technologies into a single offering. The company is heavily investing in artificial intelligence, through its 'Outmax' agent, to automate and improve the performance of ad campaigns for its clients. They are strategically shifting towards high-growth areas like Connected TV, retail media, and digital out-of-home advertising, while also expanding their global reach.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$67.00K
FY2025 Q4
$38.13M
Revenue
$439.93M
Net income
$-7.93M
Diluted EPS
-0.19
Operating cash flow
$41.93M
Free cash flow
$38.13M
Fetching…
Sources
Revenue
$498.29M
Net income
$12.61M
Diluted EPS
0.25
Operating cash flow
$6.94M
Free cash flow
$67.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $37.59 vs current price $8.94
Wall Street consensus is the average analyst price target: $13.00 (-65.4% lower than our fair-value estimate).
Our most-likely fair value is $37.59 a share — about 320.5% above today's price of $8.94, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $245.7M - more cash than debt. Interest coverage -20.3x.
Net debt
$-245.73M
Interest coverage
-20.30x
Perion Network Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PERI
BASELINE
Perion Network Ltd.
Total debt $22.09M Interest coverage -20.30x This is the baseline the peer rows are being compared against.
Total debt $157.40M Interest coverage 9.38x This peer still has a real interest-payment cushion, while PERI does not.
Total debt $356.09M Interest coverage 0.58x This peer still has a real interest-payment cushion, while PERI does not.
Total debt $40.91M Interest coverage -3.16x Neither company has much profit cushion over interest right now.
Total debt $416.98M Interest coverage 5.17x This peer still has a real interest-payment cushion, while PERI does not.
What you should know
The case for and against PERI
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 10/10 years.
Risks
-
Operating margin compressed from 16.2% to -7.6% over 3 years.
-
Insider ownership is only 0.2% (peer median: 3.3%).
-
Return on equity was -2.0% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
6.32x
P/B
0.53x
P/S
0.85x
EV/EBITDA
-8.62x
PEG ratio
0.73x
Profitability
How much profit each dollar creates
Gross margin
34.0%
Operating margin
-7.6%
Net margin
-3.0%
ROE
-2.0%
ROA
-1.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.04x
Current ratio
2.53x
Quick ratio
2.38x
Total debt
$22.09M
Total cash
$267.83M
Growth
How the business has been compounding
Revenue TTM
$2.32B
Revenue 5Y CAGR
-2.1%
EPS TTM
-0.36
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$326.45M
Free CF TTM
$38.13M
FCF margin
1.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2011-03-23