PAR Technology Corp (PAR, Financial) has recently experienced a notable uptick in its stock performance, with a market capitalization now standing at $1.26 billion. The current price of $45.06 reflects a 9.41% gain over the past week and a 16.02% gain over the past three months. According to GuruFocus's valuation metrics, the stock is currently fairly valued, with a GF Value of $47.63, slightly down from the past GF Value of $49.44. Previously considered modestly undervalued, PAR's stock price has adjusted closer to its intrinsic value, as defined by the GF Value.
Introduction to PAR Technology Corp
PAR Technology Corp operates within the software industry, providing comprehensive management technology solutions. These solutions encompass software, hardware, and services that are essential to the point-of-sale infrastructure, task management, and communication services within the restaurant and retail sectors. The company operates through two primary segments: Restaurant/Retail and Government, with the majority of its revenue stemming from the Restaurant/Retail segment. 
Assessing PAR's Profitability
PAR's Profitability Rank stands at 3 out of 10, indicating challenges in this area. The company's operating margin is currently at -16.69%, which, while not ideal, is better than 25.88% of 2,778 companies in the same sector. Its Return on Equity (ROE) is -20.01%, surpassing 24.28% of its peers. The Return on Assets (ROA) at -8.47% and Return on Invested Capital (ROIC) at -10.58% also show that PAR is performing better than 30.51% and 29.98% of its industry counterparts, respectively. However, it's important to note that PAR has only achieved profitability in one of the past ten years, which is a concern for potential investors. 
Growth Prospects of PAR Technology
PAR's Growth Rank is currently at 1 out of 10, suggesting that the company's growth metrics are not as strong as investors might hope. The 3-Year Revenue Growth Rate per Share is at 10.30%, which is better than 54.02% of the companies in the industry. The 5-Year Revenue Growth Rate per Share is lower at 3.80%, yet still outperforms 40.41% of its competitors. However, the 3-Year and 5-Year EPS without NRI Growth Rates are negative, at -9.10% and -7.60% respectively, indicating that the company's earnings have been shrinking. 
Key Shareholders in PAR Technology
Notable investors in PAR Technology include Chuck Royce (Trades, Portfolio), holding 1,157,379 shares (4.13% share percentage), Ron Baron (Trades, Portfolio) with 893,083 shares (3.19%), and Mario Gabelli (Trades, Portfolio) owning 250,244 shares (0.89%). These significant shareholders reflect a vote of confidence in the company's long-term strategy and potential for growth.
Competitive Landscape
When compared to its closest competitors by market cap, PAR Technology Corp stands among Diebold Nixdorf Inc (DBD, Financial) with a market cap of $1.29 billion, PDF Solutions Inc (PDFS, Financial) at $1.32 billion, and E2open Parent Holdings Inc (ETWO, Financial), also at $1.29 billion. This places PAR in a competitive position within the industry, as it navigates the challenges of profitability and growth.
Conclusion
In summary, PAR Technology Corp's recent stock performance has been impressive, with significant gains over the past three months. The company is currently fairly valued according to the GF Value metric. Despite facing profitability challenges, as indicated by its low Profitability Rank, and showing negative growth in EPS, PAR has managed to increase its revenue over the past few years. The commitment of its significant shareholders and its competitive stance in the market cap rankings against its peers suggest that PAR may still hold potential for long-term value investors. As the company continues to navigate its growth and profitability strategies, investors will be watching closely to see if the recent stock price rally can be sustained.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
