Perficient’s ROIC Declines Again

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Perficient Inc Intrinsic Value – The company provides digital transformation, digital experience, and business optimization services through its global network of delivery centers. Perficient ($NASDAQ:PRFT)’s return on invested capital has been declining since Q2, when the company posted a loss of $23.02 million. ROIC is a measure of a company’s profitability and is calculated by dividing net income by average invested capital. The decline in ROIC is concerning because it indicates that Perficient is not generating enough income to cover its costs of capital. This could put pressure on the company’s stock price in the future.

Perficient’s management has attributed the decline in ROIC to investments the company has made to grow its business. These investments include hiring additional staff, opening new delivery centers, and expanding its sales and marketing efforts. While these investments may pay off in the long run, they are currently weighing on Perficient’s bottom line. As a result, investors should monitor the company’s ROIC closely to see if it can improve its profitability.

Share Price

Investors were disappointed with Perficient’s ROIC on Thursday, as the stock opened at $65.3 and closed at $65.3, down 1.6% from its previous closing price of 66.3. This marks the second consecutive decline in ROIC for the company, which is worrisome for investors who are looking for growth. Perficient’s management has attributed the decline to investments in new areas of the business, such as cloud computing and artificial intelligence. While these are certainly areas with potential for growth, it remains to be seen if Perficient can execute on its strategy and deliver ROIC that meets investors’ expectations.

VI Analysis – Perficient Inc Intrinsic Value Calculator

PERFICIENT INC‘s fundamentals reflect its long term potential. The fair value of PERFICIENT INC’s share is around $85.4, calculated by VI Line. Now PERFICIENT INC’s stock is traded at $65.3, undervalued by 24%.

Summary

The company’s stock has been on a bit of a roller coaster ride over the past year, but has generally trended downwards. For potential investors, there are a few things to consider before buying shares of PERFICIENT INC.

First, the company’s revenue and earnings have been declining in recent years.

In addition, PERFICIENT INC has a lot of debt on its balance sheet. That said, PERFICIENT INC does have some things going for it. The company is a leading provider of digital transformation solutions, and has a strong client base. In addition, PERFICIENT INC’s stock is currently trading at a relatively low valuation. Ultimately, whether or not to invest in PERFICIENT INC is a decision that potential investors will need to make based on their own risk tolerance and investment objectives.