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Perion Network Ltd. (NASDAQ:PERI): A Fundamentally Attractive Investment

Simply Wall St

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Perion Network Ltd. (NASDAQ:PERI), it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Perion Network here.

Very undervalued with adequate balance sheet

PERI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that PERI has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. PERI's has produced operating cash levels of 1.81x total debt over the past year, which implies that PERI's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. PERI's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of PERI's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, PERI's share price is trading below the group's average. This supports the theory that PERI is potentially underpriced.

NasdaqGS:PERI Price Estimation Relative to Market, September 23rd 2019

Next Steps:

For Perion Network, I've compiled three essential aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for PERI’s future growth? Take a look at our free research report of analyst consensus for PERI’s outlook.
  2. Historical Performance: What has PERI's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PERI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.