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

Last update: Jun 6, 2024

Consider NICE LTD - SPON ADR (NASDAQ:NICE) as a top value stock, identified by our stock screening tool. NASDAQ:NICE shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Deciphering 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:

86.96% of the companies in the same industry are more expensive than NICE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NICE to the average of the S&P500 Index (28.27), we can say NICE is valued slightly cheaper.
86.96% of the companies in the same industry are more expensive than NICE, based on the Price/Forward Earnings ratio.
NICE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.11.
Based on the Enterprise Value to EBITDA ratio, NICE is valued cheaper than 88.77% 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 82.25% of the companies in the same industry.
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 15.25% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of NASDAQ:NICE

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:NICE was assigned a score of 8 for profitability:

The Return On Assets of NICE (6.58%) is better than 82.97% of its industry peers.
The Return On Equity of NICE (10.07%) is better than 82.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.48%, NICE belongs to the top of the industry, outperforming 85.87% of the companies in the same industry.
The last Return On Invested Capital (8.48%) for NICE is above the 3 year average (7.04%), which is a sign of increasing profitability.
NICE has a Profit Margin of 14.15%. This is amongst the best in the industry. NICE outperforms 83.33% of its industry peers.
NICE's Profit Margin has improved in the last couple of years.
NICE has a Operating Margin of 18.90%. This is amongst the best in the industry. NICE outperforms 89.49% of its industry peers.
In the last couple of years the Operating Margin of NICE has grown nicely.

Unpacking NASDAQ:NICE's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:NICE scores a 6 out of 10:

NICE has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
NICE has a Debt to FCF ratio of 1.40. This is in the better half of the industry: NICE outperforms 72.10% of its industry peers.
NICE has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
NICE has a Current Ratio of 2.06. This indicates that NICE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NICE (2.06) is better than 60.14% of its industry peers.
A Quick Ratio of 2.06 indicates that NICE has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.06, NICE is doing good in the industry, outperforming 61.59% of the companies in the same industry.

Growth Assessment of NASDAQ:NICE

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:NICE boasts a 7 out of 10:

The Earnings Per Share has grown by an nice 18.97% over the past year.
Measured over the past years, NICE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.44% on average per year.
NICE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.00%.
The Revenue has been growing by 10.48% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 15.25% 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 12.64% yearly.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of NICE

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.