For those who appreciate growth without the sticker shock, NASDAQ:NICE is worth considering.

Last update: Sep 30, 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.

How We Gauge Growth for 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.
Looking at the last year, NICE shows a quite strong growth in Revenue. The Revenue has grown by 11.95% 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.
The Earnings Per Share is expected to grow by 16.47% 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 12.24% on average per year.
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.

Assessing Valuation for NASDAQ:NICE

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:NICE boasts a 8 out of 10:

Based on the Price/Earnings ratio, NICE is valued cheaply inside the industry as 85.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 31.19, NICE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio, NICE is valued cheaply inside the industry as 87.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, NICE is valued a bit cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 88.97% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NICE is valued cheaper than 86.48% 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.
NICE has an outstanding profitability rating, which 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.

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:

The Debt to FCF ratio of NICE is 0.72, which is an excellent value as it means it would take NICE, only 0.72 years of fcf income to pay off all of its debts.
NICE has a Debt to FCF ratio of 0.72. This is in the better half of the industry: NICE outperforms 75.44% 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 2.45 indicates that NICE has no problem at all paying its short term obligations.
The Current ratio of NICE (2.45) is better than 68.33% of its industry peers.
NICE has a Quick Ratio of 2.45. This indicates that NICE is financially healthy and has no problem in meeting its short term obligations.
NICE's Quick ratio of 2.45 is fine compared to the rest of the industry. NICE outperforms 69.75% of its industry peers.

Profitability Examination for NASDAQ:NICE

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:NICE has achieved a 8:

With an excellent Return On Assets value of 7.81%, NICE belongs to the best of the industry, outperforming 83.99% of the companies in the same industry.
With an excellent Return On Equity value of 11.41%, NICE belongs to the best of the industry, outperforming 83.27% of the companies in the same industry.
NICE has a Return On Invested Capital of 9.18%. This is amongst the best in the industry. NICE outperforms 86.12% of its industry peers.
The last Return On Invested Capital (9.18%) for NICE is above the 3 year average (7.04%), which is a sign of increasing profitability.
The Profit Margin of NICE (15.48%) is better than 82.92% of its industry peers.
NICE's Profit Margin has improved in the last couple of years.
NICE's Operating Margin of 19.64% is amongst the best of the industry. NICE outperforms 89.32% of its industry peers.
In the last couple of years the Operating Margin of NICE has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of NICE contains the most current fundamental analsysis.

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.