Author: Waleed M. Tariq
- Digital advertising company Perion Network is established in Israel.
- Display Advertising and Search Advertising make up approximately half of the company’s income for the nine months ended September 30, 2021.
- Perion’s “Smart Optimization of Responsive Traits” (SORT) technology and Vidazoo video monetization platform provide it a competitive edge.
- Perion Network is a leader in the AdTech industry, exceeding analyst estimates in recent quarters.
- The latest share offering will add to PERI’s debt-free balance sheet liquidity.
- I’m bullish on Perion’s stock because of its good financial performance and underlying strength, which I expect to continue.
- I am purely bullish on the stock considering Perion has no major obstacles of not all.
- Perion’s industry-beating financial performance this quarter continues on its robust growth trajectory.
- The company has outperformed analyst predictions in the last 4 quarters, resulting in a 60% year-to-date share price growth, reaching 100% YTD. Consistent bottom-line growth manages costs.
- The estimates may appear high, but they’re justified by the company’s past and expected success.
- The company’s improving operational performance is shown by its above-average ROE and ROA.
|Metric||Perion Network||Industry Median|
- Perion’s performance metrics dwarf industry averages.
- The company’s revenue has a CAGR of 34% from 2020 to 2022, whereas the ad tech industry’s is 15.6%.
- Perion predicts $1 billion in sales by 2025 with a 25% CAGR, while digital advertising is expected to grow 11.8%. Both corporations outpace their industries.
Solvency & liquidity
- The corporation has a robust balance sheet.
- Solvent and debt-free. Its low capital lease-to-equity ratio, high cash-to-debt ratio, and high interest coverage free up $156 million for R&D and acquisitions.
- The company’s recent stock offering raised $180 million for operating capital, business growth, mergers, and other corporate goals.
- Perion just launched SORT, a cookieless tracking solution after 2 years of work.
- The technology proved SORT can outperform cookie-based targeting.
- The company’s outstanding financial performance and underlying health support my bullish stance on the stock. Before the upsides are priced in, investors can buy.