NASDAQ:NICE appears to be flying under the radar despite its strong fundamentals.

Last update: Jun 27, 2024

Uncover the potential of NICE LTD - SPON ADR (NASDAQ:NICE) as our stock screener's choice for an undervalued stock. NASDAQ:NICE maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

How do we evaluate the Valuation for NASDAQ:NICE?

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:NICE was assigned a score of 8 for valuation:

Based on the Price/Earnings ratio, NICE is valued cheaply inside the industry as 87.23% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, NICE is valued a bit cheaper.
87.23% of the companies in the same industry are more expensive than NICE, based on the Price/Forward Earnings ratio.
NICE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 19.99, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, NICE is valued cheaply inside the industry as 89.78% of the companies are valued more expensively.
NICE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NICE is cheaper than 84.67% of the companies in the same industry.
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.
NICE's earnings are expected to grow with 15.75% in the coming years. This may justify a more expensive valuation.

Looking at the Profitability

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:

NICE has a Return On Assets of 7.25%. This is amongst the best in the industry. NICE outperforms 84.31% of its industry peers.
With an excellent Return On Equity value of 10.62%, NICE belongs to the best of the industry, outperforming 82.85% of the companies in the same industry.
NICE has a better Return On Invested Capital (8.77%) than 87.59% of its industry peers.
The last Return On Invested Capital (8.77%) for NICE is above the 3 year average (7.04%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 14.85%, NICE belongs to the best of the industry, outperforming 83.21% of the companies in the same industry.
NICE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.36%, NICE belongs to the top of the industry, outperforming 89.42% of the companies in the same industry.
NICE's Operating Margin has improved in the last couple of years.

Assessing Health Metrics for NASDAQ:NICE

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NICE has achieved a 6 out of 10:

The Debt to FCF ratio of NICE is 0.85, which is an excellent value as it means it would take NICE, only 0.85 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NICE (0.85) is better than 74.45% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that NICE is not too dependend on debt financing.
NICE has a Current Ratio of 2.43. This indicates that NICE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.43, NICE is in the better half of the industry, outperforming 70.44% of the companies in the same industry.
NICE has a Quick Ratio of 2.43. This indicates that NICE is financially healthy and has no problem in meeting its short term obligations.
NICE's Quick ratio of 2.43 is fine compared to the rest of the industry. NICE outperforms 71.17% of its industry peers.

Growth Assessment of NASDAQ:NICE

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 6 out of 10:

NICE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.97%, which is quite good.
NICE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.44% yearly.
NICE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.75%.
NICE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.48% yearly.
The Earnings Per Share is expected to grow by 15.75% on average over the next years. This is quite good.
Based on estimates for the next years, NICE will show a quite strong growth in Revenue. The Revenue will grow by 12.40% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of NICE

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.