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

Last update: Nov 15, 2024

NICE LTD - SPON ADR (NASDAQ:NICE) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:NICE is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Assessing Growth for NASDAQ:NICE

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:NICE has received a 7 out of 10:

NICE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.48%, 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 9.00% 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 16.50% on average over the next years. This is quite good.
NICE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.15% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

How do we evaluate the Valuation for NASDAQ:NICE?

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:

Compared to the rest of the industry, the Price/Earnings ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 87.46% of the companies listed 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.
87.81% of the companies in the same industry are more expensive than NICE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.56. NICE is valued slightly cheaper when compared to this.
NICE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NICE is cheaper than 87.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NICE is valued cheaper than 87.81% 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.
The excellent profitability rating of NICE 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.

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.
The Debt to FCF ratio of NICE (0.72) is better 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.
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.
NICE's Current ratio of 2.45 is fine compared to the rest of the industry. NICE outperforms 68.82% of its industry peers.
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.

Looking at the Profitability

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:

Looking at the Return On Assets, with a value of 7.81%, NICE belongs to the top of the industry, outperforming 83.51% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.41%, NICE belongs to the top of the industry, outperforming 82.08% of the companies in the same industry.
NICE has a better Return On Invested Capital (9.18%) than 85.66% 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.
NICE has a better Profit Margin (15.48%) than 83.51% of its industry peers.
In the last couple of years the Profit Margin of NICE has grown nicely.
NICE has a better Operating Margin (19.64%) than 88.89% of its industry peers.
In the last couple of years the Operating Margin of NICE has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

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.