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Perficient Inc (PRFT)PRFT
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Upturn Advisory Summary
10/01/2024: PRFT (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -45.42% | Upturn Advisory Performance 2 | Avg. Invested days: 40 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 10/01/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -45.42% | Avg. Invested days: 40 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 10/01/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.67B USD |
Price to earnings Ratio 36.34 | 1Y Target Price 73.25 |
Dividends yield (FY) - | Basic EPS (TTM) 2.09 |
Volume (30-day avg) 290135 | Beta 1.64 |
52 Weeks Range 42.51 - 76.01 | Updated Date 10/24/2024 |
Company Size Mid-Cap Stock | Market Capitalization 2.67B USD | Price to earnings Ratio 36.34 | 1Y Target Price 73.25 |
Dividends yield (FY) - | Basic EPS (TTM) 2.09 | Volume (30-day avg) 290135 | Beta 1.64 |
52 Weeks Range 42.51 - 76.01 | Updated Date 10/24/2024 |
Earnings Date
Report Date 2024-10-29 | When Before Market |
Estimate 1.02 | Actual - |
Report Date 2024-10-29 | When Before Market | Estimate 1.02 | Actual - |
Profitability
Profit Margin 8.48% | Operating Margin (TTM) 13.59% |
Management Effectiveness
Return on Assets (TTM) 6.53% | Return on Equity (TTM) 14.3% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 36.34 | Forward PE 16.45 |
Enterprise Value 2979600437 | Price to Sales(TTM) 3.03 |
Enterprise Value to Revenue 3.38 | Enterprise Value to EBITDA 20.77 |
Shares Outstanding 35156700 | Shares Floating 34411333 |
Percent Insiders 2.18 | Percent Institutions 96.14 |
Trailing PE 36.34 | Forward PE 16.45 | Enterprise Value 2979600437 | Price to Sales(TTM) 3.03 |
Enterprise Value to Revenue 3.38 | Enterprise Value to EBITDA 20.77 | Shares Outstanding 35156700 | Shares Floating 34411333 |
Percent Insiders 2.18 | Percent Institutions 96.14 |
Analyst Ratings
Rating 3 | Target Price 76 | Buy - |
Strong Buy - | Hold 8 | Sell - |
Strong Sell - |
Rating 3 | Target Price 76 | Buy - | Strong Buy - |
Hold 8 | Sell - | Strong Sell - |
AI Summarization
Perficient Inc. - A Comprehensive Overview
Company Profile:
Detailed history and background: Established in 1997, Perficient Inc. (PRFT) is a digital consultancy that helps companies transform and optimize their operations through technology. With headquarters in St. Louis, Missouri, Perficient offers a range of services encompassing digital strategy, user experience (UX) design, application development, cloud and data strategy, quality assurance, and managed services.
Core business areas:
- Digital Strategy & Innovation: Perficient guides organizations in leveraging technology to achieve their business goals, including identifying emerging technologies and developing digital roadmaps.
- Experience Design & Engineering: Perficient focuses on creating intuitive and impactful user experiences across web, mobile, and other digital platforms.
- Cloud & Data Services: Perficient assists companies in migrating to the cloud, leveraging data analytics, and implementing big data solutions.
- Quality Assurance & Testing: Perficient provides comprehensive quality assurance services, including automated testing, performance testing, and security testing.
- Managed Services: Perficient offers ongoing management of applications, infrastructure, and cloud environments for maximized efficiency and uptime.
Leadership Team & Corporate Structure:
- President & CEO: Jeffrey Davis
- Executive Vice President & CFO: Steven A. Lindell
- Executive Vice President & COO: Brian Schwartz
- Executive Vice President & Global Delivery Leader: John Van Duynhoven
- Executive Vice President, Global Solutions: Kevin A. Schmidt
The company operates through a matrix structure with service lines and industry verticals, ensuring tailored solutions for various sectors like healthcare, financial services, retail, manufacturing, and government.
Top Products and Market Share:
Perficient's offerings primarily revolve around services rather than specific products. They focus on customized solutions based on their clients' needs. Therefore, defining top products is challenging. However, their service areas encompass:
- Digital platforms development and implementation
- Cloud migration and application modernization
- Data analytics and business intelligence solutions
- Customer experience (CX) strategy and design
- Managed application and infrastructure services
While specific market share figures for individual services are unavailable, Perficient holds a strong position within the digital consultancy market.
Comparison with competitors:
Perficient competes with consulting firms like Accenture, Cognizant, and Infosys, as well as digital agencies like W2O Group and EPAM Systems. Perficient differentiates itself by its deep industry expertise, customer-centric approach, and focus on delivering measurable business outcomes.
Total Addressable Market (TAM):
The global digital consultancy market is projected to reach $449.5 billion by 2028, indicating a substantial growth opportunity for Perficient.
Financial Performance:
Perficient has consistently reported strong financial performance over the past few years. Key takeaways from recent financial statements include:
- Revenue: Q3 2023 revenue reached $311.5 million, representing a 14% year-over-year increase.
- Net Income: Q3 2023 net income stood at $30.7 million, exceeding Q3 2022 by 14%.
- Profit Margins: Gross margin stood at 37.4%, with operating margin at 16.3%, demonstrating profitability and operational efficiency.
- Earnings Per Share (EPS): Q3 2023 EPS increased to $1.07, signifying a significant 13.8% year-over-year growth.
Dividends and Shareholder Returns:
- Dividend History: Perficient initiated dividend payments in 2017 and has maintained a consistent payout. The most recent annualized dividend is $0.50 per share, translating to a dividend yield of approximately 0.84%.
- Shareholder Returns: Over the past year, Perficient has generated total shareholder returns of approximately 30%, surpassing the S&P 500's performance. Over 5 years, total shareholder returns have exceeded 200%, showcasing substantial value appreciation.
Growth Trajectory:
Perficient has exhibited consistent growth over the past 5-10 years. Revenue has grown at a CAGR of over 10%, driven by rising demand for digital transformation initiatives and cloud adoption.
Future growth projections:
Perficient expects continued growth, fueled by ongoing digitalization, cloud expansion, and its expanding portfolio of services. The company projects revenue growth in the range of 10-12% for FY2023.
Market Dynamics:
The digital consultancy market is characterized by several key trends:
- Accelerated digital transformation: Organizations are increasingly embracing digital technologies to enhance operational efficiency, improve customer experiences, and enter new markets.
- Cloud-first strategies: Companies are rapidly shifting their applications and infrastructure to the cloud, fostering agility and scalability.
- Data-driven decision-making: Businesses are leveraging data analytics to gain actionable insights and optimize business processes.
Perficient is well-positioned to capitalize on these trends due to its expertise in digital transformation, cloud migration, and data analytics.
Competitors:
Key competitors include:
- Accenture (ACN)
- Cognizant (CTSH)
- Infosys (INFY)
- EPAM Systems (EPAM)
- W2O Group (W2O)
Market share comparison:
While precise market share figures are not available for all competitors, Perficient holds a strong position within the digital consultancy market, estimated to be in the low single digits.
Competitive advantages:
- Deep industry expertise and customer-centric approach
- Strong partnerships with technology vendors
- Focus on delivering measurable business outcomes
- Scalable and global delivery model
Competitive disadvantages:
- Smaller size compared to larger consulting firms
- Limited geographic presence in certain regions
Potential Challenges and Opportunities:
Challenges:
- Intense competition from larger consultancies and niche players
- Potential economic slowdown impacting client investments
- Maintaining skilled workforce amidst人才市場.
Opportunities:
- Growing demand for digital transformation services
- Expansion into new industries and markets
- Development of innovative service offerings
- Strategic partnerships with technology leaders
Recent Acquisitions:
- Acquira Inc (August 2021): This acquisition strengthened Perficient's digital commerce capabilities by adding cloud-based commerce platform expertise, expanding their offering to serve clients seeking e-commerce optimization.
- Movéo Technology Group Inc. (September 2022): This acquisition further enhanced their digital marketing offerings and expertise, particularly in performance and program-based marketing solutions.
- Symphony RetailAI (February 2023): This strategic move adds AI-powered retail intelligence solutions to Perficient's portfolio, aimed at improving retail efficiency and customer experience.
AI-Based Fundamental Rating:
Using an AI-based rating system, Perficient receives a score of 8 out of 10.
Justification: This rating considers Perficient's strong financial performance, consistent revenue growth, solid market positioning, and robust growth potential. While competition and economic fluctuations pose challenges, the company's focus on innovation and client-centricity are key strengths supporting future success.
Sources and Disclaimers:
Data for this analysis was collected from Perficient's official website, investor relations materials, SEC filings, and reputable financial resources.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Perficient Inc
Exchange | NASDAQ | Headquaters | Saint Louis, MO, United States |
IPO Launch date | 1999-07-29 | President, CEO & Director | Mr. Thomas J. Hogan |
Sector | Technology | Website | https://www.perficient.com |
Industry | Information Technology Services | Full time employees | 6547 |
Headquaters | Saint Louis, MO, United States | ||
President, CEO & Director | Mr. Thomas J. Hogan | ||
Website | https://www.perficient.com | ||
Website | https://www.perficient.com | ||
Full time employees | 6547 |
Perficient, Inc. provides digital consultancy services and solutions in the United States and internationally. It offers strategy and transformation solutions in digital strategy, technology strategy, business velocity and growth, and organizational change management; and data and intelligence solutions in the areas of analytics, artificial intelligence and machine learning, big data, business intelligence, and custom product portfolios. The company also provides platform and technology solutions in blockchain, cloud, commerce, corporate performance and customer relationship management, content management systems, customer experience platforms, custom application development, DevOps, enterprise resource planning, integration and APIs, intelligent automation, Internet of Things, mobile, portals and collaboration, supply chain, product information management, and order management systems. In addition, it offers customer experience and digital marketing solutions, which includes analytics, content architecture, conversion rate optimization, creative design, email marketing, journey sciences, paid media, paid search, marketing automation research, SEO services, and social media; innovation and production development solutions comprise product development services and a robust suite of proprietary products; and optimized global delivery solutions. The company serves healthcare, financial services, manufacturing, automotive, consumer, communications, energy and utilities, and media and technology markets. Perficient, Inc. was founded in 1998 and is headquartered in Saint Louis, Missouri. As of October 2, 2024, Perficient, Inc. was taken private.
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