NASDAQ:NICE is an undervalued gem with solid fundamentals.

Last update: Aug 9, 2024

Our stock screening tool has pinpointed NICE LTD - SPON ADR (NASDAQ:NICE) as an undervalued stock option. NASDAQ:NICE retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Assessing Valuation for NASDAQ:NICE

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:NICE, the assigned 8 reflects its valuation:

Based on the Price/Earnings ratio, NICE is valued cheaper than 85.51% of the companies in the same industry.
When comparing the Price/Earnings ratio of NICE to the average of the S&P500 Index (28.78), we can say NICE is valued slightly cheaper.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 86.93% of the companies listed in the same industry.
NICE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 88.34% of the companies listed in the same industry.
NICE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NICE is cheaper than 83.75% 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 15.86% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of NASDAQ:NICE

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:NICE, the assigned 8 is noteworthy for profitability:

NICE's Return On Assets of 7.25% is amongst the best of the industry. NICE outperforms 84.81% of its industry peers.
The Return On Equity of NICE (10.62%) is better than 83.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.77%, NICE belongs to the top of the industry, outperforming 86.93% of the companies in the same industry.
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.
NICE has a Profit Margin of 14.85%. This is amongst the best in the industry. NICE outperforms 83.04% of its industry peers.
In the last couple of years the Profit Margin of NICE has grown nicely.
With an excellent Operating Margin value of 19.36%, NICE belongs to the best of the industry, outperforming 89.40% of the companies in the same industry.
In the last couple of years the Operating Margin of NICE has grown nicely.

Evaluating Health: NASDAQ:NICE

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:NICE, the assigned 6 for health provides valuable insights:

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 75.62% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that NICE is not too dependend on debt financing.
A Current Ratio of 2.43 indicates that NICE has no problem at all paying its short term obligations.
NICE has a better Current ratio (2.43) than 70.67% 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's Quick ratio of 2.43 is fine compared to the rest of the industry. NICE outperforms 71.02% of its industry peers.

Assessing 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:

The Earnings Per Share has grown by an nice 18.97% over the past year.
NICE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.44% yearly.
Looking at the last year, NICE shows a quite strong growth in Revenue. The Revenue has grown by 10.75% in the last year.
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 15.86% on average per year.
NICE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.28% yearly.

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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.