Despite its impressive fundamentals, NASDAQ:NICE remains undervalued.

Last update: Aug 30, 2024

Discover NICE LTD - SPON ADR (NASDAQ:NICE), an undervalued stock highlighted by our stock screener. NASDAQ:NICE showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Analysis for NASDAQ:NICE

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:NICE has achieved a 8 out of 10:

86.27% of the companies in the same industry are more expensive than NICE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 30.07. NICE is valued slightly cheaper when compared to this.
NICE's Price/Forward Earnings ratio is rather cheap when compared to the industry. NICE is cheaper than 85.21% 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 21.69.
Based on the Enterprise Value to EBITDA ratio, NICE is valued cheaply inside the industry as 86.62% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 84.15% of the companies listed 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.
A more expensive valuation may be justified as NICE's earnings are expected to grow with 16.47% in the coming years.

Profitability Assessment of NASDAQ:NICE

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:NICE, the assigned 8 is a significant indicator of profitability:

NICE has a Return On Assets of 7.25%. This is amongst the best in the industry. NICE outperforms 83.45% of its industry peers.
The Return On Equity of NICE (10.62%) is better than 83.10% 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 85.92% 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.
With an excellent Profit Margin value of 14.85%, NICE belongs to the best of the industry, outperforming 83.45% 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 88.73% of its industry peers.
NICE's Operating Margin has improved in the last couple of years.

Health Examination for NASDAQ:NICE

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:NICE has earned 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.
With a decent Debt to FCF ratio value of 0.85, NICE is doing good in the industry, outperforming 75.70% of the companies in the same industry.
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.
Looking at the Current ratio, with a value of 2.43, NICE is in the better half of the industry, outperforming 69.01% 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 has a Quick ratio of 2.43. This is in the better half of the industry: NICE outperforms 70.42% of its industry peers.

Understanding NASDAQ:NICE's Growth

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:

The Earnings Per Share has grown by an impressive 21.29% over the past year.
The Earnings Per Share has been growing by 13.44% on average over the past years. This is quite good.
Looking at the last year, NICE shows a quite strong growth in Revenue. The Revenue has grown by 9.00% in the last year.
The Revenue has been growing by 10.48% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 16.47% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.28% on average over the next years. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.