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NICE LTD - SPON ADR (NICE) Stock Fundamental Analysis

NASDAQ:NICE - Nasdaq - US6536561086 - ADR - Currency: USD

151.22  -0.34 (-0.22%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to NICE. NICE was compared to 283 industry peers in the Software industry. While NICE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NICE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, NICE could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year NICE was profitable.
In the past year NICE had a positive cash flow from operations.
Of the past 5 years NICE 4 years were profitable.
NICE had a positive operating cash flow in 4 of the past 5 years.
NICE Yearly Net Income VS EBIT VS OCF VS FCFNICE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

1.2 Ratios

NICE has a Return On Assets of 8.15%. This is amongst the best in the industry. NICE outperforms 83.27% of its industry peers.
With an excellent Return On Equity value of 11.85%, NICE belongs to the best of the industry, outperforming 80.73% of the companies in the same industry.
NICE's Return On Invested Capital of 10.60% is amongst the best of the industry. NICE outperforms 86.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NICE is below the industry average of 11.97%.
The 3 year average ROIC (7.04%) for NICE is below the current ROIC(10.60%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.15%
ROE 11.85%
ROIC 10.6%
ROA(3y)5.42%
ROA(5y)5.21%
ROE(3y)8.62%
ROE(5y)8.35%
ROIC(3y)7.04%
ROIC(5y)6.73%
NICE Yearly ROA, ROE, ROICNICE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

NICE's Profit Margin of 16.04% is amongst the best of the industry. NICE outperforms 81.82% of its industry peers.
In the last couple of years the Profit Margin of NICE has grown nicely.
NICE has a better Operating Margin (20.05%) than 87.64% of its industry peers.
NICE's Operating Margin has improved in the last couple of years.
NICE has a Gross Margin (66.70%) which is comparable to the rest of the industry.
NICE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.05%
PM (TTM) 16.04%
GM 66.7%
OM growth 3Y8.5%
OM growth 5Y6.54%
PM growth 3Y5.85%
PM growth 5Y5.11%
GM growth 3Y0.9%
GM growth 5Y0.63%
NICE Yearly Profit, Operating, Gross MarginsNICE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NICE is creating some value.
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.
NICE Yearly Shares OutstandingNICE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
NICE Yearly Total Debt VS Total AssetsNICE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

NICE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.69
Altman-Z N/A
ROIC/WACC1.24
WACC8.52%
NICE Yearly LT Debt VS Equity VS FCFNICE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.66 indicates that NICE should not have too much problems paying its short term obligations.
NICE has a Current ratio of 1.66. This is comparable to the rest of the industry: NICE outperforms 50.55% of its industry peers.
A Quick Ratio of 1.66 indicates that NICE should not have too much problems paying its short term obligations.
NICE has a Quick ratio of 1.66. This is comparable to the rest of the industry: NICE outperforms 51.64% of its industry peers.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.66
NICE Yearly Current Assets VS Current LiabilitesNICE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

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4

3. Growth

3.1 Past

NICE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.51%, 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 15.93% on average per year.
EPS 1Y (TTM)26.51%
EPS 3Y19.48%
EPS 5Y15.93%
EPS Q2Q%27.97%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%15.79%

3.2 Future

The Earnings Per Share is expected to grow by 12.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.54% on average over the next years. This is quite good.
EPS Next Y13.11%
EPS Next 2Y12.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.2%
Revenue Next 2Y9.54%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
NICE Yearly Revenue VS EstimatesNICE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
NICE Yearly EPS VS EstimatesNICE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5 10

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.18, which indicates a correct valuation of NICE.
Based on the Price/Earnings ratio, NICE is valued cheaper than 88.00% of the companies in the same industry.
NICE is valuated cheaply when we compare the Price/Earnings ratio to 29.43, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.66 indicates a reasonable valuation of NICE.
90.91% of the companies in the same industry are more expensive than NICE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.65, NICE is valued a bit cheaper.
Industry RankSector Rank
PE 13.18
Fwd PE 11.66
NICE Price Earnings VS Forward Price EarningsNICE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NICE is valued cheaper than 92.00% of the companies 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 90.91% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.23
EV/EBITDA 10.47
NICE Per share dataNICE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NICE has an outstanding profitability rating, which may justify a higher PE ratio.
NICE's earnings are expected to grow with 12.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)0.83
EPS Next 2Y12.6%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for NICE!.
Industry RankSector Rank
Dividend Yield N/A

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NICE LTD - SPON ADR

NASDAQ:NICE (2/26/2025, 9:56:09 AM)

151.22

-0.34 (-0.22%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-20 2025-02-20/bmo
Earnings (Next)05-09 2025-05-09/bmo
Inst Owners13.41%
Inst Owner Change-75.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.51B
Analysts81.25
Price Target250.09 (65.38%)
Short Float %4.31%
Short Ratio6.55
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.78%
Min EPS beat(2)0.4%
Max EPS beat(2)5.16%
EPS beat(4)4
Avg EPS beat(4)2.66%
Min EPS beat(4)0.4%
Max EPS beat(4)5.16%
EPS beat(8)8
Avg EPS beat(8)2.56%
EPS beat(12)11
Avg EPS beat(12)2.23%
EPS beat(16)15
Avg EPS beat(16)2.28%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)-1.15%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)-0.93%
Revenue beat(8)0
Avg Revenue beat(8)-1.34%
Revenue beat(12)2
Avg Revenue beat(12)-0.7%
Revenue beat(16)3
Avg Revenue beat(16)-0.49%
PT rev (1m)0.92%
PT rev (3m)0.9%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)3.41%
EPS NY rev (1m)3.18%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 13.18
Fwd PE 11.66
P/S 3.61
P/FCF 14.23
P/OCF 12.45
P/B 2.66
P/tB 6.47
EV/EBITDA 10.47
EPS(TTM)11.47
EY7.58%
EPS(NY)12.97
Fwd EY8.58%
FCF(TTM)10.63
FCFY7.03%
OCF(TTM)12.15
OCFY8.03%
SpS41.94
BVpS56.75
TBVpS23.36
PEG (NY)1.01
PEG (5Y)0.83
Profitability
Industry RankSector Rank
ROA 8.15%
ROE 11.85%
ROCE 14.05%
ROIC 10.6%
ROICexc 17.83%
ROICexgc 289.14%
OM 20.05%
PM (TTM) 16.04%
GM 66.7%
FCFM 25.34%
ROA(3y)5.42%
ROA(5y)5.21%
ROE(3y)8.62%
ROE(5y)8.35%
ROIC(3y)7.04%
ROIC(5y)6.73%
ROICexc(3y)11.62%
ROICexc(5y)10.72%
ROICexgc(3y)109.88%
ROICexgc(5y)N/A
ROCE(3y)9.33%
ROCE(5y)8.92%
ROICexcg growth 3YN/A
ROICexcg growth 5Y1.67%
ROICexc growth 3Y7.07%
ROICexc growth 5Y12.83%
OM growth 3Y8.5%
OM growth 5Y6.54%
PM growth 3Y5.85%
PM growth 5Y5.11%
GM growth 3Y0.9%
GM growth 5Y0.63%
F-Score7
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.69
Debt/EBITDA 0
Cap/Depr 48.28%
Cap/Sales 3.62%
Interest Coverage 250
Cash Conversion 105.16%
Profit Quality 158.01%
Current Ratio 1.66
Quick Ratio 1.66
Altman-Z N/A
F-Score7
WACC8.52%
ROIC/WACC1.24
Cap/Depr(3y)44.4%
Cap/Depr(5y)40.75%
Cap/Sales(3y)3.6%
Cap/Sales(5y)3.71%
Profit Quality(3y)163.21%
Profit Quality(5y)173.92%
High Growth Momentum
Growth
EPS 1Y (TTM)26.51%
EPS 3Y19.48%
EPS 5Y15.93%
EPS Q2Q%27.97%
EPS Next Y13.11%
EPS Next 2Y12.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%15.79%
Revenue Next Year10.2%
Revenue Next 2Y9.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y31.88%
EBIT growth 3Y22.6%
EBIT growth 5Y17.7%
EBIT Next Year40.29%
EBIT Next 3Y15.63%
EBIT Next 5YN/A
FCF growth 1Y94.59%
FCF growth 3Y4.6%
FCF growth 5Y7.47%
OCF growth 1Y83.71%
OCF growth 3Y5.34%
OCF growth 5Y7.2%