NASDAQ:NICE is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jan 23, 2025

Our stock screener has spotted NICE LTD - SPON ADR (NASDAQ:NICE) as an undervalued stock with solid fundamentals. NASDAQ:NICE shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Evaluating Valuation: NASDAQ:NICE

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:NICE has received 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 86.74% 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 28.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 89.96% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.37. NICE is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 92.83% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NICE is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
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.

A Closer Look at Profitability for NASDAQ:NICE

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:

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.
With an excellent Profit Margin value of 16.04%, NICE belongs to the best of the industry, outperforming 82.08% of the companies in the same industry.
In the last couple of years the Profit Margin of NICE has grown nicely.
With an excellent Operating Margin value of 20.05%, NICE belongs to the best 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.

Health Assessment of 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:

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

Evaluating Growth: NASDAQ:NICE

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:NICE was assigned a score of 7 for growth:

The Earnings Per Share has grown by an impressive 23.48% over the past year.
The Earnings Per Share has been growing by 13.44% on average over the past years. This is quite good.
NICE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.52%.
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.
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 11.90% yearly.
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.

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.