NICE LTD - SPON ADR (NICE) Stock Fundamental Analysis
NASDAQ:NICE - Nasdaq - US6536561086 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to NICE. NICE was compared to 284 industry peers in the Software industry. NICE scores excellent on profitability, but 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! This makes NICE very considerable for value investing!
1. Profitability
1.1 Basic Checks
NICE had positive earnings in the past year.
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 (8.84%) than 85.21% of its industry peers.
The Return On Equity of NICE (13.21%) is better than 81.69% of its industry peers.
The Return On Invested Capital of NICE (11.47%) is better than 88.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NICE is below the industry average of 12.36%.
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
With an excellent Profit Margin value of 16.66%, NICE belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
In the last couple of years the Profit Margin of NICE has grown nicely.
NICE's Operating Margin of 20.73% is amongst the best of the industry. NICE outperforms 88.38% of its industry peers.
NICE's Operating Margin has improved in the last couple of years.
NICE has a Gross Margin (66.90%) 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NICE is creating some value.
The number of shares outstanding for NICE has been increased compared to 1 year ago.
The number of shares outstanding for NICE has been increased compared to 5 years ago.
NICE has a better debt/assets ratio than last year.
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/WACC1.24
WACC9.22%
2.3 Liquidity
NICE has a Current Ratio of 1.60. This is a normal value and indicates that NICE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NICE (1.60) is comparable to the rest of the industry.
NICE has a Quick Ratio of 1.60. This is a normal value and indicates that NICE is financially healthy and should not expect problems in meeting its short term obligations.
NICE's Quick ratio of 1.60 is in line compared to the rest of the industry. NICE outperforms 49.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.16% over the past year.
NICE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.93% yearly.
Looking at the last year, NICE shows a quite strong growth in Revenue. The Revenue has grown by 12.62% in the last year.
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
Based on estimates for the next years, NICE will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.77% on average per year.
NICE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.25% yearly.
EPS Next Y12.13%
EPS Next 2Y10.63%
EPS Next 3Y10.77%
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y6.97%
Revenue Next 3Y8.25%
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
With a Price/Earnings ratio of 14.19, NICE is valued correctly.
86.97% 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 valuation a bit cheaper than the S&P500 average which is at 26.32.
The Price/Forward Earnings ratio is 11.90, which indicates a very decent valuation of NICE.
Based on the Price/Forward Earnings ratio, NICE is valued cheaply inside the industry as 88.03% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, NICE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NICE is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
91.20% of the companies in the same industry are more expensive than NICE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.54 | ||
| EV/EBITDA | 10.68 |
4.3 Compensation for Growth
NICE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NICE may justify a higher PE ratio.
PEG (NY)1.17
PEG (5Y)0.89
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 |
165.76
-1.88 (-1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners11.94%
Inst Owner Change-7.92%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.42B
Analysts81.25
Price Target188.39 (13.65%)
Short Float %2.6%
Short Ratio3.92
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)-9.43%
PT rev (3m)-5.99%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-1.53%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-3.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 11.9 | ||
| P/S | 3.75 | ||
| P/FCF | 13.54 | ||
| P/OCF | 12.07 | ||
| P/B | 2.98 | ||
| P/tB | 7.27 | ||
| EV/EBITDA | 10.68 |
EPS(TTM)11.68
EY7.05%
EPS(NY)13.93
Fwd EY8.41%
FCF(TTM)12.24
FCFY7.38%
OCF(TTM)13.73
OCFY8.28%
SpS44.16
BVpS55.67
TBVpS22.8
PEG (NY)1.17
PEG (5Y)0.89
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
WACC9.22%
ROIC/WACC1.24
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 Year7.04%
Revenue Next 2Y6.97%
Revenue Next 3Y8.25%
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%