While growth is established for NASDAQ:NICE, the stock's valuation remains reasonable.

Our stock screening tool has pinpointed NICE LTD - SPON ADR (NASDAQ:NICE) as a growth stock that isn't overvalued. NASDAQ:NICE is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Growth Assessment of 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 7 out of 10:

• 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.
• 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 11.95%.
• Measured over the past years, NICE shows a quite strong growth in Revenue. The Revenue has been growing by 10.48% on average per year.
• NICE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.47% yearly.
• 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.

Deciphering NASDAQ:NICE's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:NICE scores a 8 out of 10:

• Based on the Price/Earnings ratio, NICE is valued cheaper than 85.00% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 31.71. 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 86.79% 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 22.81.
• NICE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NICE is cheaper than 87.14% of the companies in the same industry.
• 86.43% of the companies in the same industry are more expensive than NICE, based on the Price/Free Cash Flow ratio.
• NICE's 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.

A Closer Look at Health for NASDAQ:NICE

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:NICE has earned a 6 out of 10:

• NICE has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
• NICE's Debt to FCF ratio of 0.72 is fine compared to the rest of the industry. NICE outperforms 75.71% 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 2.45. This indicates that NICE is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of NICE (2.45) is better than 68.57% of its industry peers.
• A Quick Ratio of 2.45 indicates that NICE has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 2.45, NICE is in the better half of the industry, outperforming 70.00% of the companies in the same industry.

Profitability Analysis for NASDAQ:NICE

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:NICE has earned a 8 out of 10:

• NICE has a better Return On Assets (7.81%) than 83.93% of its industry peers.
• With an excellent Return On Equity value of 11.41%, NICE belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
• NICE's Return On Invested Capital of 9.18% is amongst the best of the industry. NICE outperforms 86.07% of its industry peers.
• The 3 year average ROIC (7.04%) for NICE is below the current ROIC(9.18%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 15.48%, NICE belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
• NICE's Profit Margin has improved in the last couple of years.
• NICE has a Operating Margin of 19.64%. This is amongst the best in the industry. NICE outperforms 89.29% 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.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.