In a market where value is scarce, NASDAQ:NICE offers a refreshing opportunity with its solid fundamentals.

Last update: Nov 15, 2024

Our stock screening tool has identified NICE LTD - SPON ADR (NASDAQ:NICE) as an undervalued gem with strong fundamentals. NASDAQ:NICE boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Valuation Assessment of NASDAQ:NICE

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:NICE has earned a 8 for valuation:

NICE's Price/Earnings ratio is rather cheap when compared to the industry. NICE is cheaper than 85.66% of the companies in the same industry.
NICE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.81.
Based on the Price/Forward Earnings ratio, NICE is valued cheaper than 86.74% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. NICE is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, NICE is valued cheaper than 86.38% of the companies in the same industry.
NICE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NICE is cheaper than 86.38% 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.
NICE has an outstanding profitability rating, which may justify a higher PE ratio.
NICE's earnings are expected to grow with 16.50% in the coming years. This may justify a more expensive valuation.

Looking at the Profitability

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's Return On Assets of 7.81% is amongst the best of the industry. NICE outperforms 83.51% of its industry peers.
The Return On Equity of NICE (11.41%) is better than 82.08% of its industry peers.
With an excellent Return On Invested Capital value of 9.18%, NICE belongs to the best of the industry, outperforming 85.66% of the companies in the same industry.
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.
NICE's Profit Margin of 15.48% is amongst the best of the industry. NICE outperforms 83.51% of its industry peers.
NICE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.64%, NICE belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
NICE's Operating Margin has improved in the last couple of years.

How do we evaluate the 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 has a better Debt to FCF ratio (0.72) than 77.06% 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 2.45 indicates that NICE has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.45, NICE is doing good in the industry, outperforming 68.82% of the companies in the same industry.
A Quick Ratio of 2.45 indicates that NICE has no problem at all paying its short term obligations.
NICE's Quick ratio of 2.45 is fine compared to the rest of the industry. NICE outperforms 69.89% of its industry peers.

Evaluating Growth: 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.
NICE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.44% yearly.
The Revenue has grown by 11.95% in the past year. This is quite good.
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 16.50% yearly.
Based on estimates for the next years, NICE will show a quite strong growth in Revenue. The Revenue will grow by 12.15% 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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.