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Perfect Corp. Class A (PERF)
NYSE:PERF
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Perfect Corp
(NYSE:PERF)
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Rating:56Neutral
Price Target:
$2.00
▲(4.71% Upside)
The overall stock score of 56 reflects a combination of strong financial performance and bearish technical indicators. While the company shows potential for profitability with strong revenue growth and stable balance sheet, technical analysis indicates weak momentum. The high P/E ratio suggests the stock is overvalued, which, combined with the lack of dividend yield, impacts its attractiveness.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective product offerings, supporting long-term business expansion.
Balance Sheet Health
A strong balance sheet with low leverage enhances financial stability and flexibility, enabling strategic investments and resilience against downturns.
Gross Profit Margin
High gross profit margins suggest effective cost control and pricing power, contributing to sustainable profitability over time.
Negative Factors
Free Cash Flow Decline
Declining free cash flow growth could limit the company's ability to invest in growth opportunities and return capital to shareholders.
Operational Inefficiencies
Persistent operational inefficiencies may hinder profitability improvements, affecting long-term financial performance and competitiveness.
Profitability Challenges
Ongoing profitability challenges, indicated by negative EBIT margins, could impact the company's ability to sustain growth and invest in future initiatives.
Perfect Corp (PERF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$174.16M
Dividend YieldN/A
Average Volume (3M)92.44K
Price to Earnings (P/E)30.4
Beta (1Y)1.17
Revenue Growth14.47%
EPS Growth11.29%
CountryUS
Employees342
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding85,059,950
10 Day Avg. Volume106,816
30 Day Avg. Volume92,438
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.93
Price to Sales (P/S)4.72
P/FCF Ratio22.53
Enterprise Value/Market Cap0.13
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit0.44
Enterprise Value/Ebitda3.03
Forecast
1Y Price Target
$5.00Price Target Upside161.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.09
Revenue Forecast (FY)$78.86M
Perfect Corp Business Overview & Revenue Model
Company DescriptionPerfect Corp. provides SaaS artificial intelligence and augmented reality beauty and fashion tech business solutions. The company offers AR makeup virtual try-on, YouCam tutorial, AI foundation shade finder and matcher, AI virtual background changer, AI skin analysis, AI face analyzer, AI face reshape simulator, AI personality finder, in-store barcode try-on, AI virtual hair color try-on, AR hairstyle virtual try-on, AI beard dye and beard style virtual try-on, hat and headband virtual try-on, AI-powered virtual try-on for glasses, virtual try-on for nails, AR watch virtual try-on, AR ring virtual try-on, AR bracelet virtual try-on, and AR earring virtual try-on solutions and services. It also provides YouCam makeup, YouCam perfect, YouCam video, YouCam cut, YouCam nails, and YouCam fun apps. The company was founded in 2015 and is based in New Taipei City, Taiwan.
How the Company Makes MoneyPerfect Corp generates revenue through a combination of subscription services, licensing fees, and transactional sales. The company offers its AR and AI technologies as subscription-based services to brands and retailers in the beauty and fashion sectors, allowing them to integrate these solutions into their marketing platforms. Additionally, Perfect Corp earns revenue from licensing its software to third-party developers and businesses. Key revenue streams also include partnerships with major beauty brands and e-commerce platforms, where the company provides tailored solutions to enhance customer experiences and drive sales. The increasing demand for virtual try-on technologies and digital transformation in retail further contributes to its earnings.
Perfect Corp Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and net income growth, successful integration of the WANNA acquisition, and a solid financial position. However, challenges included a decrease in key customers and mobile app subscribers amid macroeconomic conditions. Overall, the positive financial performance and strategic advancements offset the challenges faced.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenue grew by 12.1% year-over-year to $16 million, in line with revenue guidance for 2025.
Significant Increase in Net Income
Net income increased by 264% year-over-year to $2.3 million, with an adjusted net income increase of 33.3%.
Expansion of Mobile App Subscription Business
Active paying subscribers grew by 7.9% to 973,000, with new Generative AI features introduced.
Successful Integration of WANNA Acquisition
Integration of WANNA is progressing smoothly, leading to new growth opportunities and geographic expansion.
Positive Operating Cash Flow
Operating cash flow generated a net inflow of $4.3 million, strengthening the company's financial position.
Strong Balance Sheet
The company holds $164.6 million in cash and cash equivalents, demonstrating strong financial health.
Negative Updates
Decrease in Key Customers
The number of key customers decreased from 151 to 148 due to contract churn amid financial challenges in the macroeconomic environment.
Expected Decline in Mobile App Subscribers
Active subscribers decreased from 1 million at the end of 2024 to 973,000, attributed to pricing optimization and introduction of higher-priced plans.
Impact of Macroeconomic Conditions
Some enterprise clients in the U.S. faced financial pressures and terminated contracts due to economic uncertainties.
Company Guidance
During Perfect Corp.'s first quarter 2025 earnings call, CEO Alice Chang highlighted several key financial metrics and strategic initiatives. The company reported a 12.1% year-over-year revenue increase to $16 million, with a significant net income jump of 264% to $2.3 million. Adjusted net income rose by 33.3% to $2 million. The mobile app subscription business, particularly in the AI/AR cloud solutions sector, was a major growth driver, contributing to an operating cash flow of $4.3 million and maintaining a robust balance sheet with $164.6 million in cash and cash equivalents. The B2C segment saw a 7.9% increase in active paying subscribers, totaling 973,000, while the B2B segment expanded to 801 brand clients with over 891,000 SKUs. Strategic developments included the launch of the YouCam AI Chat app and the integration of the newly acquired WANNA team, enhancing their market position, especially in the shoes vertical. The company's growth strategy remains focused on expanding the Generative AI functions and driving higher premium subscriptions, while also integrating new acquisitions to bolster their presence in the beauty and fashion markets.Perfect Corp Financial Statement Overview
Summary
Perfect Corp demonstrates strong revenue growth and profitability potential, with high gross profit margins. The balance sheet highlights financial stability with minimal debt and strong equity ratios. Cash flow generation is positive, though reliance on low capital expenditures could limit future expansion. Operational inefficiencies remain a concern, as reflected in negative EBIT margins.Income Statement
Perfect Corp demonstrates robust revenue growth with a TTM increase of 28.69% compared to 2020. Gross profit margins remain high at 77.89% TTM, underscoring strong profitability potential. However, the company faces challenges with EBIT margins in the negative, indicating operational inefficiencies. Net profit margins have improved, showcasing better cost management and a positive net income trajectory.Balance Sheet
The balance sheet is solid with a low debt-to-equity ratio of 0.0025 TTM, reflecting minimal leverage risk. The equity ratio is strong at 80.13% TTM, indicating a healthy reliance on equity financing and financial stability. The company has consistently increased stockholders' equity, suggesting robust asset growth and retained earnings.Cash Flow
Cash flow analysis reveals positive free cash flow growth, supported by a 6.63% increase in TTM free cash flow. The operating cash flow to net income ratio of 2.07 indicates efficient cash generation relative to earnings. However, the capital expenditure remains low, which might impact long-term growth potential.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 66.90M | 60.20M | 53.51M | 47.30M | 40.76M | 29.87M |
| Gross Profit | 50.69M | 46.94M | 43.10M | 40.17M | 35.02M | 25.91M |
| EBITDA | 7.29M | -2.05M | 6.26M | -160.68M | -155.78M | -4.71M |
| Net Income | 5.67M | 5.02M | 5.42M | -161.74M | -156.85M | -5.59M |
Balance Sheet | ||||||
| Total Assets | 194.18M | 181.17M | 170.36M | 210.27M | 88.90M | 86.24M |
| Cash, Cash Equivalents and Short-Term Investments | 170.13M | 165.87M | 154.17M | 192.62M | 80.45M | 79.02M |
| Total Debt | 739.00K | 510.00K | 868.00K | 338.00K | 638.00K | 340.00K |
| Total Liabilities | 41.25M | 34.16M | 30.96M | 28.31M | 279.35M | 121.98M |
| Stockholders Equity | 152.93M | 147.01M | 139.41M | 181.96M | -190.44M | -35.74M |
Cash Flow | ||||||
| Free Cash Flow | 13.57M | 12.61M | 13.26M | -3.56M | 1.39M | 1.90M |
| Operating Cash Flow | 14.00M | 13.00M | 13.58M | -3.31M | 1.55M | 2.19M |
| Investing Cash Flow | -12.69M | -8.88M | -637.00K | -30.26M | -213.00K | 7.84M |
| Financing Cash Flow | -562.52K | -525.00K | -51.50M | 118.03M | -63.00K | 39.81M |
Perfect Corp Technical Analysis
Negative
1.91
Price Trends
1.81
Negative
1.89
Negative
1.92
Negative
Market Momentum
-0.01
Negative
43.60
Neutral
54.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PERF, the sentiment is Negative. The current price of 1.91 is above the 20-day moving average (MA) of 1.76, above the 50-day MA of 1.81, and below the 200-day MA of 1.92, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 43.60 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PERF.
Perfect Corp Risk Analysis
Perfect Corp disclosed 97 risk factors in its most recent earnings report. Perfect Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Perfect Corp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $133.96M | 11.36 | 18.24% | ― | 0.59% | ― | |
59 Neutral | $338.00M | -10.77 | -20.20% | ― | -6.23% | 28.57% | |
56 Neutral | $174.16M | 30.43 | 3.80% | ― | 14.47% | 11.29% | |
50 Neutral | $132.12M | -8.38 | -12.19% | ― | 4.71% | 11.12% | |
49 Neutral | $113.78M | -10.58 | -14.61% | ― | -1.83% | -642.89% | |
48 Neutral | $620.10M | ― | -28.65% | ― | 16.40% | 22.80% |
* Technology Sector Average
PERF
Perfect Corp
1.71
-0.99
-36.67%
SSTI
SoundThinking Inc
8.96
-3.59
-28.61%
MAPS
WM Technology
0.85
-0.53
-38.26%
FRGE
Forge Global Holdings
44.79
33.76
306.07%
ONTF
ON24
7.96
1.73
27.77%
EXFY
Expensify
1.42
-1.83
-56.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.