Looking for growth without the hefty price tag? Consider NASDAQ:NICE.

Last update: Dec 9, 2024

Uncover the potential of NICE LTD - SPON ADR (NASDAQ:NICE), a growth stock that our stock screener found to be reasonably priced. NASDAQ:NICE is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Assessing Growth for 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:

The Earnings Per Share has grown by an impressive 21.57% over the past year.
The Earnings Per Share has been growing by 13.44% on average over the past years. This is quite good.
The Revenue has grown by 13.52% in the past year. This is quite good.
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 15.90% yearly.
The Revenue is expected to grow by 12.15% on average over the next years. This is quite good.

Analyzing Valuation Metrics

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:NICE was assigned a score of 8 for valuation:

Based on the Price/Earnings ratio, NICE is valued cheaply inside the industry as 86.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.48, NICE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio, NICE is valued cheaply inside the industry as 88.49% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.95, 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 89.21% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 89.93% of the companies listed 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 15.90% in the coming years.

A Closer Look at Health 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:

There is no outstanding debt for NICE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:NICE, the assigned 8 is noteworthy for profitability:

NICE has a Return On Assets of 8.15%. This is amongst the best in the industry. NICE outperforms 83.45% of its industry peers.
The Return On Equity of NICE (11.85%) is better than 82.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.60%, NICE belongs to the top of the industry, outperforming 86.69% of the companies in the same industry.
The last Return On Invested Capital (10.60%) for NICE is above the 3 year average (7.04%), which is a sign of increasing profitability.
NICE's Profit Margin of 16.04% is amongst the best of the industry. NICE outperforms 82.73% of its industry peers.
NICE's Profit Margin has improved in the last couple of years.
NICE has a Operating Margin of 20.05%. This is amongst the best in the industry. NICE outperforms 88.13% 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.

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

Keep in mind

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.