NICE LTD - SPON ADR (NASDAQ:NICE) is an undervalued gem with solid fundamentals.

Our stock screening tool has pinpointed NICE LTD - SPON ADR (NASDAQ:NICE) as an undervalued stock. NICE maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Examination for NICE

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NICE has achieved a 8 out of 10:

• Based on the Price/Earnings ratio, NICE is valued cheaper than 87.10% of the companies in the same industry.
• NICE is valuated cheaply when we compare the Price/Earnings ratio to 29.14, which is the current average of the S&P500 Index.
• NICE's Price/Forward Earnings ratio is rather cheap when compared to the industry. NICE is cheaper than 89.96% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 22.10. NICE is valued slightly cheaper when compared to this.
• 92.11% of the companies in the same industry are more expensive than NICE, based on the Enterprise Value to EBITDA ratio.
• 90.32% of the companies in the same industry are more expensive than NICE, based on the Price/Free Cash Flow ratio.
• NICE has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as NICE's earnings are expected to grow with 12.60% in the coming years.

Profitability Insights: 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. NICE was assigned a score of 8 for profitability:

• NICE has a Return On Assets of 8.36%. This is amongst the best in the industry. NICE outperforms 83.15% of its industry peers.
• With a decent Return On Equity value of 12.33%, NICE is doing good in the industry, outperforming 79.93% of the companies in the same industry.
• NICE's Return On Invested Capital of 10.53% is amongst the best of the industry. NICE outperforms 87.10% of its industry peers.
• The last Return On Invested Capital (10.53%) for NICE is above the 3 year average (8.49%), which is a sign of increasing profitability.
• With a decent Profit Margin value of 16.18%, NICE is doing good in the industry, outperforming 79.57% of the companies in the same industry.
• NICE's Profit Margin has improved in the last couple of years.
• NICE has a Operating Margin of 20.01%. This is amongst the best in the industry. NICE outperforms 86.74% of its industry peers.
• In the last couple of years the Operating Margin of NICE has grown nicely.

Exploring NICE's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NICE has earned a 5 out of 10:

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

Growth Analysis for NICE

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NICE has received a 6 out of 10:

• 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.
• NICE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.93% yearly.
• NICE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.05%.
• NICE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.69% yearly.
• Based on estimates for the next years, NICE will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.60% on average per year.
• The Revenue is expected to grow by 8.25% on average over the next years. This is quite good.

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

Check the latest full fundamental report of NICE for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.