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

Last update: Jan 23, 2025

Take a closer look at NICE LTD - SPON ADR (NASDAQ:NICE), an affordable growth stock uncovered by our stock screener. NASDAQ:NICE boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Deciphering NASDAQ:NICE's Growth Rating

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:

The Earnings Per Share has grown by an impressive 23.48% over the past year.
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 13.52% in the past year. This is quite good.
NICE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.48% yearly.
Based on estimates for the next years, NICE will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.50% on average per year.
Based on estimates for the next years, NICE will show a quite strong growth in Revenue. The Revenue will grow by 11.90% 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.

Unpacking NASDAQ:NICE's Valuation Rating

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 86.74% of the companies in the same industry.
When comparing the Price/Earnings ratio of NICE to the average of the S&P500 Index (28.19), we can say NICE is valued slightly cheaper.
89.96% 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 24.37. 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 92.83% 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 90.32% 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.
A more expensive valuation may be justified as NICE's earnings are expected to grow with 16.50% in the coming years.

Analyzing Health Metrics

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:

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

Profitability Analysis for NASDAQ:NICE

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:NICE scores a 8 out of 10:

Looking at the Return On Assets, with a value of 8.15%, NICE belongs to the top of the industry, outperforming 83.15% of the companies in the same industry.
NICE has a Return On Equity of 11.85%. This is amongst the best in the industry. NICE outperforms 82.44% of its industry peers.
NICE's Return On Invested Capital of 10.60% is amongst the best of the industry. NICE outperforms 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 has a better Profit Margin (16.04%) than 82.08% of its industry peers.
In the last couple of years the Profit Margin of NICE has grown nicely.
NICE has a Operating Margin of 20.05%. This is amongst the best in the industry. NICE outperforms 88.17% of its industry peers.
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

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.