Should you buy Perion Network stock? (May 2024)

Published first at https://www.3minutebreakdowns.com
Perion Network stock analysis. Ticker: $PERI

Perion Network is an adtech business with a wild past. During the pandemic the stock went up 20x but shares are now down 70% from those highs. At the latest price, the company has a market cap of 595 million dollars. With 480 million of cash and investments on its balance sheet and 90 million of debt the enterprise value is 205 million.

Revenue over the last 12 months comes to 756 million with 105 million of net income and 158 million of adjusted ebitda. So Perion stock is now valued at under 6 times earnings. And when you realize that two thirds of the market cap is in cash, the enterprise value to ebitda ratio is only 1.3 times. That makes Perion one of the cheapest companies in the whole market and it’s worth understanding why.

When Perion came to the public markets in 2006 it didn’t have much of a business. The business grew over time but it’s downloadable IncrediMail product was criticized in 2013 for hijacking users' browsers. Browsers were reset in order to generate advertising revenue and the product was said to be virtually impossible to uninstall. When Google changed its policies in 2013/2014, Perion ended up tanking 95%.

What's interesting is that a similar scenario is playing out now.

#investing #stocks #3mb #perion

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