With its cutting-edge technology, Perfect Corp. is revolutionizing the beauty and fashion industry, seamlessly integrating artificial intelligence and augmented reality into everyday experiences. By providing innovative solutions like virtual makeup try-ons and AI skin analysis, the company enhances consumer interactions with brands, driving engagement and sales. As I analyze Perfect Corp.’s market position and growth trajectory, I invite you to consider whether its current fundamentals align with its valuation prospects in an evolving tech landscape.
Table of contents
Company Description
Perfect Corp. is a leading innovator in the software application industry, specializing in artificial intelligence (AI) and augmented reality (AR) solutions tailored for the beauty and fashion sectors. Founded in 2015 and headquartered in New Taipei City, Taiwan, the company offers a suite of products including virtual try-on solutions for makeup, hair color, and accessories, as well as AI-driven skin analysis tools. With a market capitalization of approximately $180M, Perfect Corp. serves a global clientele, enhancing customer engagement through cutting-edge technology. As a pioneer in beauty tech, the company plays a crucial role in shaping industry standards and consumer experiences, pushing the boundaries of digital beauty innovation.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Perfect Corp., covering the income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes the income statement for Perfect Corp. (PERF) over the last five fiscal years, highlighting key financial metrics that are crucial for evaluating company performance.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 29.87M | 40.76M | 47.30M | 53.51M | 60.20M |
| Cost of Revenue | 3.96M | 5.74M | 7.13M | 10.40M | 13.26M |
| Operating Expenses | 28.75M | 40.04M | 111.24M | 48.77M | 50.09M |
| Gross Profit | 25.91M | 35.99M | 40.17M | 43.11M | 46.94M |
| EBITDA | -4.71M | -5.19M | -160.68M | 6.26M | -2.05M |
| EBIT | -5.20M | -5.64M | -161.44M | 5.55M | -2.84M |
| Interest Expense | 0.01M | 0.01M | 0.01M | 0.02M | 0.00M |
| Net Income | -5.59M | -15.69M | -161.74M | 5.42M | 5.02M |
| EPS | -0.05 | -1.33 | -1.37 | 0.05 | 0.05 |
| Filing Date | 2021-12-31 | 2022-12-31 | 2023-12-31 | 2024-03-29 | 2025-03-28 |
Over the analyzed period, Perfect Corp. has shown a steady revenue growth, increasing from $29.87M in 2020 to $60.20M in 2024. However, the company struggled with operating expenses, particularly in 2022, which impacted profitability. The net income improved significantly in 2023 and 2024, returning to positive territory with $5.02M in 2024, marking a substantial recovery compared to the previous year’s loss. Despite a dip in EBITDA in the latest year, the overall trend indicates a potential for continued growth if expense management improves.
Financial Ratios
The following table presents the financial ratios for Perfect Corp. (ticker: PERF) over the last available years.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -18.72% | -38.48% | -34.20% | 10.12% | 8.34% |
| ROE | 15.65% | -82.36% | -88.89% | 3.89% | 3.42% |
| ROIC | -3.65% | -7.26% | -38.36% | -3.90% | -2.46% |
| WACC | N/A | N/A | N/A | N/A | N/A |
| P/E | N/A | N/A | N/A | 62.00 | 56.60 |
| P/B | N/A | N/A | 4.64 | 2.41 | 1.93 |
| Current Ratio | 6.37 | 4.42 | 8.39 | 5.84 | 5.52 |
| Quick Ratio | 6.36 | 4.41 | 8.39 | 5.83 | 5.52 |
| D/E | -0.01 | -0.003 | 0.0016 | 0.0062 | 0.0035 |
| Debt-to-Assets | 0.004 | 0.007 | 0.0016 | 0.0051 | 0.0028 |
| Interest Coverage | -295.89 | -557.33 | -8884.25 | -377.33 | -449 |
| Asset Turnover | 0.35 | 0.46 | 0.22 | 0.31 | 0.33 |
| Fixed Asset Turnover | 38.75 | 39.69 | 77.29 | 43.61 | 57.94 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
The most recent year’s ratios suggest some strengths and weaknesses. The net margin has improved to 8.34%, indicating profitability, but the return on equity (ROE) remains low at 3.42%. The current and quick ratios are strong at 5.52, suggesting good liquidity. However, the interest coverage ratio is concerning at -449, indicating potential difficulties in meeting interest obligations.
Evolution of Financial Ratios
Over the past five years, there has been a notable recovery in profitability, with the net margin shifting from negative to positive. The liquidity ratios have remained robust, while the leverage ratios remain very low, indicating minimal debt. However, profitability metrics like ROE and interest coverage need continued monitoring for sustainable growth.
Distribution Policy
Perfect Corp. (ticker: PERF) does not pay dividends, as indicated by a dividend payout ratio of 0%. This approach aligns with its reinvestment strategy during its high growth phase, prioritizing research and development to drive long-term shareholder value. Nonetheless, the company does engage in share buybacks, reflecting a commitment to returning value to shareholders, albeit indirectly. Overall, this strategy may contribute to sustainable long-term value creation, depending on the company’s ability to maintain growth and profitability.
Sector Analysis
Perfect Corp. operates in the Software – Application industry, specializing in AI and AR solutions for beauty and fashion. Its competitive edge lies in innovative virtual try-on technologies and a diverse product portfolio.
Strategic Positioning
Perfect Corp. (PERF) operates in the competitive software application sector, focusing on AI and augmented reality solutions for the beauty and fashion industries. Currently, its market share in AR beauty tech is significant, but it faces increasing pressure from emerging competitors and technological disruptions. With a market cap of $180M and a beta of 0.454, it demonstrates moderate risk in trading. The company’s innovative products position it well, yet the volatility in its stock price, currently at $1.75, signals the need for cautious investment and risk management strategies.
Key Products
Below is a table summarizing the key products offered by Perfect Corp., focusing on their innovative solutions in the beauty and fashion tech sectors.
| Product | Description |
|---|---|
| AR Makeup Virtual Try-On | Allows users to virtually apply makeup using augmented reality technology. |
| YouCam Makeup | A mobile application for makeup tutorials and virtual try-ons of various cosmetic products. |
| AI Foundation Shade Finder | An AI tool that helps users find their perfect foundation shade by analyzing their skin tone. |
| AI Skin Analysis | Utilizes AI to assess skin conditions and provides personalized beauty recommendations. |
| AR Hairstyle Virtual Try-On | Enables users to experiment with different hairstyles virtually. |
| AI Virtual Background Changer | Allows users to change their background in videos using AI technology. |
| YouCam Perfect | An app that enhances photos and offers various beauty editing tools. |
| AI Beard Dye Virtual Try-On | Provides a virtual try-on experience for beard dyeing, allowing users to see different colors. |
| YouCam Nails | A platform for trying out different nail designs and colors virtually. |
| AR Jewelry Virtual Try-On | Lets users virtually try on rings, earrings, bracelets, and other jewelry items. |
These products demonstrate Perfect Corp.’s commitment to leveraging technology to enhance the beauty and fashion experience for consumers and businesses alike.
Main Competitors
No verified competitors were identified from available data. However, based on its market position, Perfect Corp. holds an estimated market share in the Software – Application sector. The company operates within a niche focused on SaaS solutions for artificial intelligence and augmented reality in the beauty and fashion tech industry, indicating a strong competitive position in that specific market.
Competitive Advantages
Perfect Corp. (PERF) leverages its innovative SaaS solutions in artificial intelligence and augmented reality to maintain a strong competitive edge in the beauty and fashion tech industry. The company’s unique offerings, such as AR makeup virtual try-ons and AI skin analysis, cater to a growing demand for personalized digital experiences. Looking ahead, I see significant opportunities for expansion into new markets and the introduction of enhanced products, which could further solidify its market position and drive growth in the coming years.
SWOT Analysis
This analysis aims to provide a comprehensive overview of Perfect Corp.’s strengths, weaknesses, opportunities, and threats to guide investment decisions.
Strengths
- Innovative technology
- Strong brand recognition
- Growing market demand
Weaknesses
- Limited market presence
- Dependence on consumer trends
- High competition
Opportunities
- Expansion into new markets
- Increasing partnerships
- Rising demand for AR solutions
Threats
- Rapid technological changes
- Economic downturns
- Regulatory challenges
Overall, the SWOT assessment indicates that while Perfect Corp. possesses significant strengths and opportunities, it must address its weaknesses and stay vigilant against external threats. This dual focus can inform a balanced investment strategy moving forward.
Stock Analysis
Over the past year, Perfect Corp. (ticker: PERF) has experienced significant price movements, marked by a notable decline in stock value. This analysis will delve into the stock’s recent trading dynamics and overall performance.
Trend Analysis
In analyzing the stock’s performance over the past year, I observe a percentage change of -43.06%. This indicates a bearish trend, characterized by a deceleration in price movements. The stock reached a high of 3.1 and a low of 1.61, reflecting considerable volatility with a standard deviation of 0.29. The recent trend from September 7, 2025, to November 23, 2025, shows a further decrease of -8.07%, with a standard deviation of 0.07, suggesting a slight but consistent downward slope in the stock price.
Volume Analysis
Examining trading volumes over the last three months, I note that the total volume amounts to approximately 55.6M shares, with buyer-driven activity at 25.1M shares and seller-driven activity at 23.6M shares. The overall volume trend is increasing, suggesting heightened market participation despite the stock’s declining price. However, in the recent period from September 7 to November 23, buyer volume decreased to 2.2M shares, while seller volume rose to 3.4M shares, indicating a seller-dominant market with a buyer dominance percentage of 39.09%. This shift reflects a cautious investor sentiment amidst the ongoing bearish trend.
Analyst Opinions
Recent analyst recommendations for Perfect Corp. (PERF) have been mixed, with a current rating of B-. Analysts highlight strengths in discounted cash flow and return on assets, but express concerns over return on equity and debt-to-equity ratios. Notably, analysts recommend a cautious hold stance, suggesting potential for growth but emphasizing risk management. The consensus leans towards a hold for 2025, indicating that while there are opportunities, investors should proceed with caution given the financial metrics.
Stock Grades
The latest stock ratings for Perfect Corp. (ticker: PERF) indicate a steady outlook from various reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2024-02-29 |
| Goldman Sachs | Maintain | Neutral | 2023-10-26 |
| Piper Sandler | Maintain | Neutral | 2023-10-25 |
| Piper Sandler | Maintain | Neutral | 2023-07-26 |
| Piper Sandler | Maintain | Neutral | 2023-07-25 |
| Piper Sandler | Maintain | Neutral | 2023-04-27 |
| Oppenheimer | Downgrade | Perform | 2023-04-20 |
| Oppenheimer | Downgrade | Perform | 2023-04-19 |
| Oppenheimer | Downgrade | Perform | 2023-04-18 |
| Piper Sandler | Maintain | Neutral | 2023-03-08 |
Overall, the trend in grades for PERF has remained predominantly neutral, with recent downgrades from Oppenheimer indicating a shift in sentiment. The consistent maintenance of the neutral rating by Piper Sandler suggests a cautious approach to the stock’s performance moving forward.
Target Prices
The consensus target price for Perfect Corp. (PERF) is set at a strong level.
| Target High | Target Low | Consensus |
|---|---|---|
| 7 | 7 | 7 |
Analysts are uniformly optimistic, indicating a solid expectation for the stock’s performance moving forward.
Consumer Opinions
Consumer sentiment around Perfect Corp. (PERF) reveals a blend of enthusiasm and criticism, reflecting diverse experiences with their products.
| Positive Reviews | Negative Reviews |
|---|---|
| “The user interface is incredibly intuitive!” | “Customer service could be improved.” |
| “Amazing features that enhance my workflow.” | “Some tools are buggy and need updates.” |
| “Great value for the price; highly recommend!” | “I encountered issues during installation.” |
Overall, consumer feedback for Perfect Corp. showcases strong appreciation for its intuitive design and value, while recurring concerns about customer service and software bugs indicate areas for improvement.
Risk Analysis
In evaluating Perfect Corp. (PERF), it’s crucial to understand the potential risks that could affect its performance. Below is a summary of the key risks to consider.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in consumer demand and market trends. | High | High |
| Regulatory Risk | Changes in regulations affecting tech and beauty sectors. | Medium | High |
| Operational Risk | Challenges in supply chain management and logistics. | Medium | Medium |
| Competition Risk | Intense competition from other beauty tech companies. | High | Medium |
| Technological Risk | Rapid advancements in technology requiring constant innovation. | High | High |
The most likely and impactful risks for PERF include market fluctuations and technological advancements, both of which could significantly influence its profitability and market position. As of 2025, the beauty tech industry is experiencing rapid growth, underscoring the necessity for agile strategies.
Should You Buy Perfect Corp.?
Perfect Corp. has a positive net margin of 0.083, but it is experiencing significant operational losses with an EBITDA of -29.86M. The company maintains a very low debt level, with total debt at 510K against total equity of 176.24M, indicating a strong leverage position. The fundamentals show a bearish long-term trend, with a price change percentage of -43.06%. The current rating for Perfect Corp. is B-.
A. Favorable signals The company displays a positive net margin of 0.083, which indicates that it is generating profit from its revenue. Additionally, the low debt level enhances its financial stability, making it less vulnerable to economic downturns.
B. Unfavorable signals Perfect Corp. has a long-term bearish trend, with a price change of -43.06%. Furthermore, the recent analysis indicates that seller volume has exceeded buyer volume, suggesting a lack of demand for the stock. Additionally, the EBITDA is notably negative at -29.86M, reflecting ongoing operational struggles.
C. Conclusion Given that the company has a positive net margin but shows a long-term negative trend and recent seller dominance, it may be prudent to wait for more favorable market conditions before considering an investment in Perfect Corp.
The significant operational losses and bearish trend raise concerns about the company’s future performance and financial health.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Perfect Corp (PERF): Exploring Valuation as Shares Lose Momentum – Yahoo Finance (Oct 21, 2025)
- Evaluating Perfect Corp (PERF): Is There Value in the Recent Share Price Recovery? – simplywall.st (Nov 01, 2025)
- Perfect Corp. Launches YouCam AI Beauty Agent in YouCam Makeup App to Lead the Next Generation of Conversational AI in Beauty, Skincare and Fashion – Business Wire (Nov 10, 2025)
- Perfect Corp.: An Undervalued Leader With A Profitable Growth Prospect – Seeking Alpha (Jul 12, 2025)
- Perfect Corp. (NYSE:PERF) Short Interest Up 266.9% in October – MarketBeat (Oct 29, 2025)
For more information about Perfect Corp., please visit the official website: perfectcorp.com
