Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if NICE LTD - SPON ADR (NASDAQ:NICE) is suited for quality investing. Investors should of course do their own research, but we spotted NICE LTD - SPON ADR showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
What matters for quality investors.
NICE has achieved substantial revenue growth over the past 5 years, with a 11.69% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
NICE exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 339.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
With a Debt/Free Cash Flow Ratio of 0.63, NICE exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
The Profit Quality (5-year) of NICE stands at 173.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
NICE has demonstrated consistent growth in EBIT over the past 5 years, with a strong 18.04%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
With EBIT 5-year growth outpacing its Revenue 5-year growth, NICE showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
Fundamental Analysis Observations
ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.
NICE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. While NICE has a great profitability rating, 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. These ratings would make NICE suitable for value investing!
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
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.