NICE LTD - SPON ADR (NICE) Stock Fundamental Analysis
NASDAQ:NICE - Nasdaq - US6536561086 - ADR - Currency: USD
NICE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. While NICE has a great profitability rating, there are some minor concerns on its financial health. NICE is valued quite cheap, while showing a decent growth score. This is a good combination! This makes NICE very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year NICE was profitable.
NICE had a positive operating cash flow in the past year.
NICE had positive earnings in each of the past 5 years.
Each year in the past 5 years NICE had a positive operating cash flow.
1.2 Ratios
NICE's Return On Assets of 8.84% is amongst the best of the industry. NICE outperforms 85.11% of its industry peers.
With an excellent Return On Equity value of 13.21%, NICE belongs to the best of the industry, outperforming 81.56% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.47%, NICE belongs to the top of the industry, outperforming 88.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NICE is below the industry average of 12.26%.
The 3 year average ROIC (8.49%) for NICE is below the current ROIC(11.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.21% | ||
| ROIC | 11.47% |
ROA(3y)6.78%
ROA(5y)5.84%
ROE(3y)10.34%
ROE(5y)9.15%
ROIC(3y)8.49%
ROIC(5y)7.35%
1.3 Margins
NICE has a Profit Margin of 16.66%. This is amongst the best in the industry. NICE outperforms 84.40% of its industry peers.
NICE's Profit Margin has improved in the last couple of years.
NICE has a Operating Margin of 20.73%. This is amongst the best in the industry. NICE outperforms 88.30% of its industry peers.
In the last couple of years the Operating Margin of NICE has grown nicely.
Looking at the Gross Margin, with a value of 66.90%, NICE is in line with its industry, outperforming 47.87% of the companies in the same industry.
NICE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.73% | ||
| PM (TTM) | 16.66% | ||
| GM | 66.9% |
OM growth 3Y13.23%
OM growth 5Y5.7%
PM growth 3Y15.65%
PM growth 5Y6.35%
GM growth 3Y-0.37%
GM growth 5Y0.16%
2. Health
2.1 Basic Checks
NICE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for NICE has been increased 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | N/A |
ROIC/WACC1.21
WACC9.52%
2.3 Liquidity
NICE has a Current Ratio of 1.60. This is a normal value and indicates that NICE is financially healthy and should not expect problems in meeting its short term obligations.
NICE has a Current ratio (1.60) which is comparable to the rest of the industry.
A Quick Ratio of 1.60 indicates that NICE should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.60, NICE perfoms like the industry average, outperforming 49.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
NICE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.16%, which is quite impressive.
The Earnings Per Share has been growing by 15.93% 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 12.62%.
Measured over the past years, NICE shows a quite strong growth in Revenue. The Revenue has been growing by 11.69% on average per year.
EPS 1Y (TTM)22.16%
EPS 3Y19.48%
EPS 5Y15.93%
EPS Q2Q%11.24%
Revenue 1Y (TTM)12.62%
Revenue growth 3Y12.5%
Revenue growth 5Y11.69%
Sales Q2Q%6.2%
3.2 Future
The Earnings Per Share is expected to grow by 10.77% 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 8.25% yearly.
EPS Next Y12.13%
EPS Next 2Y10.63%
EPS Next 3Y10.77%
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y6.97%
Revenue Next 3Y8.25%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.57, NICE is valued correctly.
Based on the Price/Earnings ratio, NICE is valued cheaply inside the industry as 88.30% of the companies are valued more expensively.
NICE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.21, NICE is valued correctly.
Based on the Price/Forward Earnings ratio, NICE is valued cheaper than 90.43% of the companies in the same industry.
NICE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.21 |
4.2 Price Multiples
NICE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NICE is cheaper than 91.13% 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 91.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.91 | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
NICE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NICE may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)0.91
EPS Next 2Y10.63%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
No dividends for NICE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
170.19
+1.79 (+1.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners11.94%
Inst Owner Change-7.92%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.70B
Analysts81.25
Price Target207.62 (21.99%)
Short Float %2.92%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.62%
Min EPS beat(2)-1.17%
Max EPS beat(2)-0.07%
EPS beat(4)2
Avg EPS beat(4)1.08%
Min EPS beat(4)-1.17%
Max EPS beat(4)5.16%
EPS beat(8)6
Avg EPS beat(8)1.81%
EPS beat(12)10
Avg EPS beat(12)1.85%
EPS beat(16)13
Avg EPS beat(16)1.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)-1.15%
Revenue beat(8)0
Avg Revenue beat(8)-1.4%
Revenue beat(12)0
Avg Revenue beat(12)-1.29%
Revenue beat(16)3
Avg Revenue beat(16)-0.51%
PT rev (1m)-0.18%
PT rev (3m)-1.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.21 | ||
| P/S | 3.85 | ||
| P/FCF | 13.91 | ||
| P/OCF | 12.4 | ||
| P/B | 3.06 | ||
| P/tB | 7.46 | ||
| EV/EBITDA | 10.89 |
EPS(TTM)11.68
EY6.86%
EPS(NY)13.93
Fwd EY8.19%
FCF(TTM)12.24
FCFY7.19%
OCF(TTM)13.73
OCFY8.07%
SpS44.16
BVpS55.67
TBVpS22.8
PEG (NY)1.2
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 13.21% | ||
| ROCE | 15.6% | ||
| ROIC | 11.47% | ||
| ROICexc | 20.37% | ||
| ROICexgc | 3744.43% | ||
| OM | 20.73% | ||
| PM (TTM) | 16.66% | ||
| GM | 66.9% | ||
| FCFM | 27.72% |
ROA(3y)6.78%
ROA(5y)5.84%
ROE(3y)10.34%
ROE(5y)9.15%
ROIC(3y)8.49%
ROIC(5y)7.35%
ROICexc(3y)14.21%
ROICexc(5y)12.54%
ROICexgc(3y)163.28%
ROICexgc(5y)N/A
ROCE(3y)11.55%
ROCE(5y)10%
ROICexcg growth 3Y25.64%
ROICexcg growth 5Y53.44%
ROICexc growth 3Y23.73%
ROICexc growth 5Y18.38%
OM growth 3Y13.23%
OM growth 5Y5.7%
PM growth 3Y15.65%
PM growth 5Y6.35%
GM growth 3Y-0.37%
GM growth 5Y0.16%
F-Score7
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.6 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 47.66% | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 111.81% | ||
| Profit Quality | 166.4% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | N/A |
F-Score7
WACC9.52%
ROIC/WACC1.21
Cap/Depr(3y)48.45%
Cap/Depr(5y)43.32%
Cap/Sales(3y)3.65%
Cap/Sales(5y)3.66%
Profit Quality(3y)152.88%
Profit Quality(5y)173.68%
High Growth Momentum
Growth
EPS 1Y (TTM)22.16%
EPS 3Y19.48%
EPS 5Y15.93%
EPS Q2Q%11.24%
EPS Next Y12.13%
EPS Next 2Y10.63%
EPS Next 3Y10.77%
EPS Next 5YN/A
Revenue 1Y (TTM)12.62%
Revenue growth 3Y12.5%
Revenue growth 5Y11.69%
Sales Q2Q%6.2%
Revenue Next Year7.04%
Revenue Next 2Y6.97%
Revenue Next 3Y8.25%
Revenue Next 5YN/A
EBIT growth 1Y20.58%
EBIT growth 3Y27.38%
EBIT growth 5Y18.06%
EBIT Next Year17.62%
EBIT Next 3Y9.19%
EBIT Next 5YN/A
FCF growth 1Y95.7%
FCF growth 3Y22.92%
FCF growth 5Y18.61%
OCF growth 1Y79.06%
OCF growth 3Y21.71%
OCF growth 5Y17.35%