NASDAQ:NICE is an undervalued gem with solid fundamentals.

Last update: Jul 19, 2024

Uncover the hidden value in NICE LTD - SPON ADR (NASDAQ:NICE) as our stock screening tool recommends it as an undervalued choice. NASDAQ:NICE maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Exploring NASDAQ:NICE's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:NICE has received a 8 out of 10:

Based on the Price/Earnings ratio, NICE is valued cheaply inside the industry as 85.77% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.83, NICE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio, NICE is valued cheaply inside the industry as 86.86% of the companies are valued more expensively.
NICE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.60, which is the current average of the S&P500 Index.
NICE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NICE is cheaper than 87.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NICE is valued cheaper than 83.58% 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.
The excellent profitability rating of NICE 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.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:NICE scores a 8 out of 10:

The Return On Assets of NICE (7.25%) is better than 84.31% of its industry peers.
NICE has a better Return On Equity (10.62%) than 82.85% of its industry peers.
NICE has a better Return On Invested Capital (8.77%) than 87.23% of its industry peers.
The 3 year average ROIC (7.04%) for NICE is below the current ROIC(8.77%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 14.85%, NICE belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
In the last couple of years the Profit Margin of NICE has grown nicely.
NICE has a better Operating Margin (19.36%) than 89.42% of its industry peers.
NICE's Operating Margin has improved in the last couple of years.

Deciphering NASDAQ:NICE's Health Rating

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:

NICE has a debt to FCF ratio of 0.85. This is a very positive value and a sign of high solvency as it would only need 0.85 years to pay back of all of its debts.
NICE has a better Debt to FCF ratio (0.85) than 75.18% 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.
NICE's Current ratio of 2.43 is fine compared to the rest of the industry. NICE outperforms 70.80% of its industry peers.
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 has a Quick ratio of 2.43. This is in the better half of the industry: NICE outperforms 71.53% of its industry peers.

A Closer Look at Growth for NASDAQ:NICE

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:NICE boasts 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.
The Earnings Per Share has been growing by 13.44% on average over the past years. This is quite good.
NICE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.75%.
The Revenue has been growing by 10.48% on average over the past years. This is quite good.
NICE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.75% yearly.
NICE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.40% yearly.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of NICE for a complete fundamental analysis.

Keep in mind

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.