NICE LTD - SPON ADR (NICE) Stock Fundamental Analysis
NASDAQ:NICE - Nasdaq - US6536561086 - ADR - Currency: USD
Overall NICE gets a fundamental rating of 6 out of 10. We evaluated NICE 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! These ratings would make NICE suitable 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.
NICE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.84%, NICE belongs to the top of the industry, outperforming 84.75% of the companies in the same industry.
The Return On Equity of NICE (13.21%) is better than 80.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.47%, NICE belongs to the top of the industry, outperforming 87.94% of the companies in the same industry.
NICE had an Average Return On Invested Capital over the past 3 years of 8.49%. This is below the industry average of 12.15%.
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 84.04% of its industry peers.
In the last couple of years the Profit Margin of NICE has grown nicely.
Looking at the Operating Margin, with a value of 20.73%, NICE belongs to the top of the industry, outperforming 88.65% of the companies in the same industry.
NICE's Operating Margin has improved in the last couple of years.
NICE's Gross Margin of 66.90% is in line compared to the rest of the industry. NICE outperforms 47.87% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NICE is still creating some value.
Compared to 1 year ago, NICE has more shares outstanding
The number of shares outstanding for NICE has been increased compared to 5 years ago.
Compared to 1 year ago, NICE has an improved debt to assets ratio.
2.2 Solvency
NICE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | N/A |
ROIC/WACC1.25
WACC9.17%
2.3 Liquidity
A Current Ratio of 1.60 indicates that NICE should not have too much problems paying its short term obligations.
NICE has a Current ratio of 1.60. This is comparable to the rest of the industry: NICE outperforms 50.00% of its industry peers.
A Quick Ratio of 1.60 indicates that NICE should not have too much problems paying its short term obligations.
NICE has a Quick ratio (1.60) which is in line with its industry peers.
| 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%.
The Revenue has been growing by 11.69% on average over the past years. This is quite good.
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
NICE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.77% yearly.
Based on estimates for the next years, NICE will show a quite strong growth in Revenue. The Revenue will grow by 8.15% on average per year.
EPS Next Y12.13%
EPS Next 2Y10.63%
EPS Next 3Y10.77%
EPS Next 5YN/A
Revenue Next Year7.11%
Revenue Next 2Y6.92%
Revenue Next 3Y8.15%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.10 indicates a correct valuation of NICE.
86.52% of the companies in the same industry are more expensive than NICE, based on the Price/Earnings ratio.
NICE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.03.
Based on the Price/Forward Earnings ratio of 10.98, the valuation of NICE can be described as reasonable.
Based on the Price/Forward Earnings ratio, NICE is valued cheaper than 90.78% of the companies in the same industry.
NICE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 92.20% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NICE is valued cheaper than 92.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.5 | ||
| EV/EBITDA | 9.72 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NICE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)0.82
EPS Next 2Y10.63%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
NICE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
153.05
-2.77 (-1.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners11.94%
Inst Owner Change-1%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.62B
Analysts81.25
Price Target210.65 (37.63%)
Short Float %3.13%
Short Ratio4.21
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)1.46%
PT rev (3m)5.5%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 10.98 | ||
| P/S | 3.47 | ||
| P/FCF | 12.5 | ||
| P/OCF | 11.15 | ||
| P/B | 2.75 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 9.72 |
EPS(TTM)11.68
EY7.63%
EPS(NY)13.93
Fwd EY9.1%
FCF(TTM)12.24
FCFY8%
OCF(TTM)13.73
OCFY8.97%
SpS44.16
BVpS55.67
TBVpS22.8
PEG (NY)1.08
PEG (5Y)0.82
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
WACC9.17%
ROIC/WACC1.25
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 Year7.11%
Revenue Next 2Y6.92%
Revenue Next 3Y8.15%
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%