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NICE LTD - SPON ADR (NICE) Stock Fundamental Analysis

NASDAQ:NICE - Nasdaq - US6536561086 - ADR

165.58  +0.06 (+0.04%)

Fundamental Rating

7

NICE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. NICE scores excellent on profitability, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: NICE is growing strongly while it also seems undervalued. These ratings would make NICE suitable for value and growth investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

NICE had positive earnings in the past year.
NICE had a positive operating cash flow in the past year.
NICE had positive earnings in each of the past 5 years.
In the past 5 years NICE always reported a positive cash flow from operatings.
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 better Return On Assets (8.15%) than 83.15% of its industry peers.
The Return On Equity of NICE (11.85%) is better than 82.44% 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 87.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NICE is significantly below the industry average of 12.12%.
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.
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

Looking at the Profit Margin, with a value of 16.04%, NICE belongs to the top 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.
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.
NICE has a Gross Margin (66.70%) which is in line with its industry peers.
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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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NICE is still creating some value.
The number of shares outstanding for NICE has been reduced compared to 1 year ago.
NICE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NICE has been reduced compared to a year ago.
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

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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.69
Altman-Z N/A
ROIC/WACC1.24
WACC8.57%
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

NICE has a Current Ratio of 1.66. This is a normal value and indicates that NICE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NICE (1.66) is comparable to the rest of the industry.
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 (1.66) which is in line with 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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7

3. Growth

3.1 Past

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.
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.
EPS 1Y (TTM)23.48%
EPS 3Y15.33%
EPS 5Y13.44%
EPS Q2Q%26.87%
Revenue 1Y (TTM)13.52%
Revenue growth 3Y12.99%
Revenue growth 5Y10.48%
Sales Q2Q%14.74%

3.2 Future

The Earnings Per Share is expected to grow by 16.50% on average over the next years. This is quite good.
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.
EPS Next Y24.44%
EPS Next 2Y18.89%
EPS Next 3Y16.5%
EPS Next 5YN/A
Revenue Next Year15.04%
Revenue Next 2Y12.61%
Revenue Next 3Y11.9%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last 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 15.35, which indicates a correct valuation of NICE.
Based on the Price/Earnings ratio, NICE is valued cheaply inside the industry as 86.74% of the companies are valued more expensively.
NICE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.92, the valuation of NICE can be described as correct.
Based on the Price/Forward Earnings ratio, NICE is valued cheaper than 89.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, NICE is valued a bit cheaper.
Industry RankSector Rank
PE 15.35
Fwd PE 12.92
NICE Price Earnings VS Forward Price EarningsNICE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NICE is valued cheaply inside the industry as 92.47% of the companies are valued more expensively.
NICE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NICE is cheaper than 89.96% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.58
EV/EBITDA 11.68
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 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.
PEG (NY)0.63
PEG (5Y)1.14
EPS Next 2Y18.89%
EPS Next 3Y16.5%

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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 (1/22/2025, 10:35:00 AM)

165.58

+0.06 (+0.04%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-14 2024-11-14/dmh
Earnings (Next)02-13 2025-02-13/amc
Inst Owners12.92%
Inst Owner Change1.07%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.41B
Analysts81.25
Price Target247.81 (49.66%)
Short Float %4.04%
Short Ratio5.25
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)-2.55%
PT rev (3m)-6.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 15.35
Fwd PE 12.92
P/S 3.95
P/FCF 15.58
P/OCF 13.63
P/B 2.92
P/tB 7.09
EV/EBITDA 11.68
EPS(TTM)10.79
EY6.52%
EPS(NY)12.81
Fwd EY7.74%
FCF(TTM)10.63
FCFY6.42%
OCF(TTM)12.15
OCFY7.34%
SpS41.94
BVpS56.75
TBVpS23.36
PEG (NY)0.63
PEG (5Y)1.14
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
WACC8.57%
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)23.48%
EPS 3Y15.33%
EPS 5Y13.44%
EPS Q2Q%26.87%
EPS Next Y24.44%
EPS Next 2Y18.89%
EPS Next 3Y16.5%
EPS Next 5YN/A
Revenue 1Y (TTM)13.52%
Revenue growth 3Y12.99%
Revenue growth 5Y10.48%
Sales Q2Q%14.74%
Revenue Next Year15.04%
Revenue Next 2Y12.61%
Revenue Next 3Y11.9%
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%