NICE LTD - SPON ADR (NICE) Stock Fundamental Analysis
USA - NASDAQ:NICE - US6536561086 - ADR
148.93 USD
+0.93 (+0.63%)
148.93 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to NICE. NICE was compared to 279 industry peers in the Software industry. NICE has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on NICE. These ratings could make NICE a good candidate 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.
Each year in the past 5 years NICE has been profitable.
NICE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NICE has a better Return On Assets (10.06%) than 86.02% of its industry peers.
The Return On Equity of NICE (14.31%) is better than 82.08% of its industry peers.
The Return On Invested Capital of NICE (11.37%) is better than 87.81% of its industry peers.
NICE had an Average Return On Invested Capital over the past 3 years of 8.49%. This is below the industry average of 11.86%.
The last Return On Invested Capital (11.37%) for NICE is above the 3 year average (8.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.06% | ||
| ROE | 14.31% | ||
| ROIC | 11.37% |
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's Profit Margin of 18.81% is amongst the best of the industry. NICE outperforms 83.15% of its industry peers.
NICE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 21.39%, NICE belongs to the top of the industry, outperforming 87.46% of the companies in the same industry.
In the last couple of years the Operating Margin of NICE has grown nicely.
NICE has a Gross Margin (67.03%) which is in line with its industry peers.
In the last couple of years the Gross Margin of NICE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.39% | ||
| PM (TTM) | 18.81% | ||
| GM | 67.03% |
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.
NICE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NICE has more shares outstanding
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 | 0.7 | ||
| Altman-Z | N/A |
ROIC/WACC1.25
WACC9.1%
2.3 Liquidity
A Current Ratio of 1.83 indicates that NICE should not have too much problems paying its short term obligations.
The Current ratio of NICE (1.83) is comparable to the rest of the industry.
A Quick Ratio of 1.83 indicates that NICE should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.83, NICE perfoms like the industry average, outperforming 59.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.59% 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 15.93% on average per year.
NICE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.39%.
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)19.59%
EPS 3Y19.48%
EPS 5Y15.93%
EPS Q2Q%14.02%
Revenue 1Y (TTM)11.39%
Revenue growth 3Y12.5%
Revenue growth 5Y11.69%
Sales Q2Q%9.38%
3.2 Future
The Earnings Per Share is expected to grow by 12.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.30% on average over the next years. This is quite good.
EPS Next Y14.15%
EPS Next 2Y11.75%
EPS Next 3Y12.4%
EPS Next 5YN/A
Revenue Next Year7.25%
Revenue Next 2Y7.11%
Revenue Next 3Y8.3%
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
The Price/Earnings ratio is 12.35, which indicates a correct valuation of NICE.
Compared to the rest of the industry, the Price/Earnings ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 87.81% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. NICE is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.48 indicates a reasonable valuation of NICE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 89.96% of the companies listed in the same industry.
NICE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 10.48 |
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 92.47% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NICE is valued cheaper than 91.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.93 | ||
| EV/EBITDA | 8.62 |
4.3 Compensation for Growth
NICE's 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.
A more expensive valuation may be justified as NICE's earnings are expected to grow with 12.40% in the coming years.
PEG (NY)0.87
PEG (5Y)0.78
EPS Next 2Y11.75%
EPS Next 3Y12.4%
5. Dividend
5.1 Amount
NICE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
148.93
+0.93 (+0.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners11.94%
Inst Owner Change-5.56%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.20B
Analysts81.33
Price Target198.36 (33.19%)
Short Float %3.77%
Short Ratio3.54
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)-1.29%
Min EPS beat(2)-1.41%
Max EPS beat(2)-1.17%
EPS beat(4)1
Avg EPS beat(4)0.63%
Min EPS beat(4)-1.41%
Max EPS beat(4)5.16%
EPS beat(8)5
Avg EPS beat(8)1.44%
EPS beat(12)9
Avg EPS beat(12)1.55%
EPS beat(16)12
Avg EPS beat(16)1.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)-0.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)-0.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.21%
Revenue beat(12)0
Avg Revenue beat(12)-1.25%
Revenue beat(16)3
Avg Revenue beat(16)-0.49%
PT rev (1m)-9.5%
PT rev (3m)5.29%
EPS NQ rev (1m)2.11%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)1.82%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-3.89%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 10.48 | ||
| P/S | 3.24 | ||
| P/FCF | 13.93 | ||
| P/OCF | 12.18 | ||
| P/B | 2.46 | ||
| P/tB | 5.5 | ||
| EV/EBITDA | 8.62 |
EPS(TTM)12.06
EY8.1%
EPS(NY)14.22
Fwd EY9.55%
FCF(TTM)10.69
FCFY7.18%
OCF(TTM)12.23
OCFY8.21%
SpS45.97
BVpS60.43
TBVpS27.1
PEG (NY)0.87
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.06% | ||
| ROE | 14.31% | ||
| ROCE | 15.46% | ||
| ROIC | 11.37% | ||
| ROICexc | 19.46% | ||
| ROICexgc | 188.31% | ||
| OM | 21.39% | ||
| PM (TTM) | 18.81% | ||
| GM | 67.03% | ||
| FCFM | 23.26% |
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 | 0.7 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 49.93% | ||
| Cap/Sales | 3.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.72% | ||
| Profit Quality | 123.61% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | N/A |
F-Score7
WACC9.1%
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)19.59%
EPS 3Y19.48%
EPS 5Y15.93%
EPS Q2Q%14.02%
EPS Next Y14.15%
EPS Next 2Y11.75%
EPS Next 3Y12.4%
EPS Next 5YN/A
Revenue 1Y (TTM)11.39%
Revenue growth 3Y12.5%
Revenue growth 5Y11.69%
Sales Q2Q%9.38%
Revenue Next Year7.25%
Revenue Next 2Y7.11%
Revenue Next 3Y8.3%
Revenue Next 5YN/A
EBIT growth 1Y21.29%
EBIT growth 3Y27.38%
EBIT growth 5Y18.06%
EBIT Next Year17.62%
EBIT Next 3Y9.19%
EBIT Next 5YN/A
FCF growth 1Y49.42%
FCF growth 3Y22.92%
FCF growth 5Y18.61%
OCF growth 1Y42.08%
OCF growth 3Y21.71%
OCF growth 5Y17.35%