Investors should take note of NASDAQ:NICE, a growth stock that remains attractively priced.

Last update: Aug 19, 2024

NICE LTD - SPON ADR (NASDAQ:NICE) was identified as an affordable growth stock by our stock screener. NASDAQ:NICE is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Evaluating Growth: NASDAQ:NICE

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:NICE has earned a 7 for growth:

NICE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.29%, which is quite impressive.
Measured over the past years, NICE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.44% on average per year.
NICE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.00%.
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 15.86% yearly.
NICE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.28% yearly.

Assessing Valuation for NASDAQ:NICE

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:

85.56% of the companies in the same industry are more expensive than NICE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NICE to the average of the S&P500 Index (29.43), we can say NICE is valued slightly cheaper.
Based on the Price/Forward Earnings ratio, NICE is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
NICE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.82.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 87.32% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NICE is valued cheaper than 83.10% of the companies in the same industry.
The 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.

Understanding NASDAQ:NICE's Health Score

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.
NICE has a Debt to FCF ratio of 0.85. This is in the better half of the industry: NICE outperforms 75.35% of its industry peers.
NICE has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 2.43 indicates that NICE has no problem at all paying its short term obligations.
NICE's Current ratio of 2.43 is fine compared to the rest of the industry. NICE outperforms 70.42% of its industry peers.
A Quick Ratio of 2.43 indicates that NICE has no problem at all paying its short term obligations.
The Quick ratio of NICE (2.43) is better than 71.13% of its industry peers.

Profitability Assessment of NASDAQ:NICE

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:

With an excellent Return On Assets value of 7.25%, NICE belongs to the best of the industry, outperforming 83.80% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.62%, NICE belongs to the top of the industry, outperforming 83.45% of the companies in the same industry.
NICE's Return On Invested Capital of 8.77% is amongst the best of the industry. NICE outperforms 85.92% 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.
NICE's Profit Margin of 14.85% is amongst the best of the industry. NICE outperforms 83.45% 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 88.73% of the companies in the same industry.
In the last couple of years the Operating Margin of NICE has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.