Investors seeking growth at a reasonable cost should explore NASDAQ:NICE.

Last update: Jun 5, 2024

Take a closer look at NICE LTD - SPON ADR (NASDAQ:NICE), an affordable growth stock uncovered by our stock screener. NASDAQ:NICE boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Looking at the Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:NICE scores a 7 out of 10:

The Earnings Per Share has grown by an nice 18.97% over the past year.
The Earnings Per Share has been growing by 13.44% on average over the past years. This is quite good.
The Revenue has grown by 9.00% in the past year. This is quite good.
NICE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.48% yearly.
Based on estimates for the next years, NICE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.25% on average per year.
NICE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.64% yearly.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Exploring NASDAQ:NICE's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:NICE boasts a 8 out of 10:

NICE's Price/Earnings ratio is rather cheap when compared to the industry. NICE is cheaper than 85.87% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.88, NICE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio, NICE is valued cheaper than 85.87% of the companies in the same industry.
NICE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 19.96.
NICE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NICE is cheaper than 87.68% of the companies in the same industry.
80.43% of the companies in the same industry are more expensive than NICE, based on the Price/Free Cash Flow ratio.
NICE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NICE has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NICE's earnings are expected to grow with 15.25% in the coming years.

Exploring NASDAQ:NICE's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:NICE was assigned a score of 6 for health:

The Debt to FCF ratio of NICE is 1.40, which is an excellent value as it means it would take NICE, only 1.40 years of fcf income to pay off all of its debts.
NICE has a Debt to FCF ratio of 1.40. This is in the better half of the industry: NICE outperforms 72.10% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that NICE is not too dependend on debt financing.
NICE has a Current Ratio of 2.06. This indicates that NICE is financially healthy and has no problem in meeting its short term obligations.
NICE has a Current ratio of 2.06. This is in the better half of the industry: NICE outperforms 60.14% of its industry peers.
A Quick Ratio of 2.06 indicates that NICE has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.06, NICE is doing good in the industry, outperforming 61.59% of the companies in the same industry.

Profitability Examination for NASDAQ:NICE

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:NICE was assigned a score of 8 for profitability:

With an excellent Return On Assets value of 6.58%, NICE belongs to the best of the industry, outperforming 82.97% of the companies in the same industry.
With an excellent Return On Equity value of 10.07%, NICE belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.48%, NICE belongs to the best of the industry, outperforming 85.87% of the companies in the same industry.
The last Return On Invested Capital (8.48%) for NICE is above the 3 year average (7.04%), which is a sign of increasing profitability.
NICE's Profit Margin of 14.15% is amongst the best of the industry. NICE outperforms 83.33% of its industry peers.
NICE's Profit Margin has improved in the last couple of years.
The Operating Margin of NICE (18.90%) is better than 89.49% of its industry peers.
NICE's Operating Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of NICE contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.