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

Last update: Dec 30, 2024

Here's NICE LTD - SPON ADR (NASDAQ:NICE) for you, a growth stock our stock screener believes is undervalued. NASDAQ:NICE is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Analysis 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 21.57%, which is quite impressive.
The Earnings Per Share has been growing by 13.44% on average over the past years. This is quite good.
Looking at the last year, NICE shows a quite strong growth in Revenue. The Revenue has grown by 13.52% in the last year.
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.
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.

Assessing Valuation Metrics 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 86.38% of the companies are valued more expensively.
NICE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, NICE is valued cheaper than 88.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NICE to the average of the S&P500 Index (23.86), we can say NICE is valued slightly cheaper.
NICE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NICE is cheaper than 91.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NICE is valued cheaper than 90.68% 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 15.90% in the coming years.

Health Assessment of NASDAQ:NICE

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NICE has received a 6 out of 10:

NICE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

Understanding NASDAQ:NICE's Profitability

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's Return On Assets of 8.15% is amongst the best of the industry. NICE outperforms 83.51% of its industry peers.
With an excellent Return On Equity value of 11.85%, NICE belongs to the best of the industry, outperforming 82.80% of the companies in the same industry.
NICE has a better Return On Invested Capital (10.60%) than 87.10% of its industry peers.
The 3 year average ROIC (7.04%) for NICE is below the current ROIC(10.60%), indicating increased profibility in the last year.
NICE's Profit Margin of 16.04% is amongst the best of the industry. NICE outperforms 82.80% of its industry peers.
In the last couple of years the Profit Margin of NICE has grown nicely.
Looking at the Operating Margin, with a value of 20.05%, NICE belongs to the top of the industry, outperforming 88.17% of the companies in the same industry.
In the last couple of years the Operating Margin of NICE has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

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.