NICE LTD - SPON ADR (NICE) Stock Fundamental Analysis
NASDAQ:NICE - Nasdaq - US6536561086 - ADR - Currency: USD
NICE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. While NICE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NICE may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make NICE a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year NICE was profitable.
In the past year NICE had a positive cash flow from operations.
NICE had positive earnings in each of the past 5 years.
Each year in the past 5 years NICE had a positive operating cash flow.
1.2 Ratios
NICE has a better Return On Assets (8.36%) than 83.04% of its industry peers.
NICE has a Return On Equity of 12.33%. This is in the better half of the industry: NICE outperforms 79.15% of its industry peers.
NICE's Return On Invested Capital of 10.53% is amongst the best of the industry. NICE outperforms 86.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NICE is below the industry average of 12.70%.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.36% | ||
| ROE | 12.33% | ||
| ROIC | 10.53% |
ROA(3y)6.8%
ROA(5y)5.86%
ROE(3y)10.37%
ROE(5y)9.17%
ROIC(3y)8.49%
ROIC(5y)7.35%
1.3 Margins
Looking at the Profit Margin, with a value of 16.18%, NICE belongs to the top of the industry, outperforming 80.92% of the companies in the same industry.
NICE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.01%, NICE belongs to the top of the industry, outperforming 87.28% of the companies in the same industry.
NICE's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 66.75%, NICE perfoms like the industry average, outperforming 48.76% of the companies in the same industry.
NICE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.01% | ||
| PM (TTM) | 16.18% | ||
| GM | 66.75% |
OM growth 3Y13.2%
OM growth 5Y5.69%
PM growth 3Y15.92%
PM growth 5Y6.5%
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.
The number of shares outstanding for NICE remains at a similar level compared to 1 year ago.
NICE has more shares outstanding than it did 5 years ago.
NICE has a better debt/assets ratio than last year.
2.2 Solvency
There is no outstanding debt for NICE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | N/A |
ROIC/WACC1.17
WACC8.99%
2.3 Liquidity
NICE has a Current Ratio of 1.70. This is a normal value and indicates that NICE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.70, NICE is in line with its industry, outperforming 52.65% of the companies in the same industry.
A Quick Ratio of 1.70 indicates that NICE should not have too much problems paying its short term obligations.
NICE has a Quick ratio (1.70) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 |
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.
NICE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.93% yearly.
The Revenue has grown by 15.05% in the past year. This is quite good.
NICE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.69% yearly.
EPS 1Y (TTM)22.16%
EPS 3Y19.48%
EPS 5Y15.93%
EPS Q2Q%11.24%
Revenue 1Y (TTM)15.05%
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.
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 13.60, NICE is valued correctly.
86.57% of the companies in the same industry are more expensive than NICE, based on the Price/Earnings ratio.
NICE is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.40, the valuation of NICE can be described as reasonable.
88.34% of the companies in the same industry are more expensive than NICE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NICE to the average of the S&P500 Index (21.76), we can say NICE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 11.4 |
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 91.17% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NICE indicates a rather cheap valuation: NICE is cheaper than 89.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.72 | ||
| EV/EBITDA | 10.45 |
4.3 Compensation for Growth
NICE's 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)1.12
PEG (5Y)0.85
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 |
159.94
-1.67 (-1.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners13.41%
Inst Owner Change-8.31%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.06B
Analysts81.25
Price Target208 (30.05%)
Short Float %2.62%
Short Ratio3.48
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)1
Avg EPS beat(2)2.54%
Min EPS beat(2)-0.07%
Max EPS beat(2)5.16%
EPS beat(4)3
Avg EPS beat(4)2.18%
Min EPS beat(4)-0.07%
Max EPS beat(4)5.16%
EPS beat(8)7
Avg EPS beat(8)2.03%
EPS beat(12)11
Avg EPS beat(12)2.24%
EPS beat(16)14
Avg EPS beat(16)2.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.2%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-1.15%
Revenue beat(4)0
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)-1.15%
Revenue beat(8)0
Avg Revenue beat(8)-1.24%
Revenue beat(12)1
Avg Revenue beat(12)-1.03%
Revenue beat(16)3
Avg Revenue beat(16)-0.46%
PT rev (1m)-1.43%
PT rev (3m)-16.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 11.4 | ||
| P/S | 3.68 | ||
| P/FCF | 13.72 | ||
| P/OCF | 12.08 | ||
| P/B | 2.8 | ||
| P/tB | 6.66 | ||
| EV/EBITDA | 10.45 |
EPS(TTM)11.76
EY7.35%
EPS(NY)14.03
Fwd EY8.77%
FCF(TTM)11.66
FCFY7.29%
OCF(TTM)13.24
OCFY8.28%
SpS43.51
BVpS57.1
TBVpS24
PEG (NY)1.12
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.36% | ||
| ROE | 12.33% | ||
| ROCE | 14.32% | ||
| ROIC | 10.53% | ||
| ROICexc | 18.29% | ||
| ROICexgc | 338.87% | ||
| OM | 20.01% | ||
| PM (TTM) | 16.18% | ||
| GM | 66.75% | ||
| FCFM | 26.79% |
ROA(3y)6.8%
ROA(5y)5.86%
ROE(3y)10.37%
ROE(5y)9.17%
ROIC(3y)8.49%
ROIC(5y)7.35%
ROICexc(3y)14.21%
ROICexc(5y)12.54%
ROICexgc(3y)163.2%
ROICexgc(5y)N/A
ROCE(3y)11.54%
ROCE(5y)10%
ROICexcg growth 3Y25.61%
ROICexcg growth 5Y53.42%
ROICexc growth 3Y23.7%
ROICexc growth 5Y18.36%
OM growth 3Y13.2%
OM growth 5Y5.69%
PM growth 3Y15.92%
PM growth 5Y6.5%
GM growth 3Y-0.37%
GM growth 5Y0.16%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 48.66% | ||
| Cap/Sales | 3.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.69% | ||
| Profit Quality | 165.59% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | N/A |
F-Score7
WACC8.99%
ROIC/WACC1.17
Cap/Depr(3y)48.45%
Cap/Depr(5y)43.32%
Cap/Sales(3y)3.65%
Cap/Sales(5y)3.66%
Profit Quality(3y)152.49%
Profit Quality(5y)173.45%
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)15.05%
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 1Y21.81%
EBIT growth 3Y27.35%
EBIT growth 5Y18.04%
EBIT Next Year24.07%
EBIT Next 3Y17.76%
EBIT Next 5YN/A
FCF growth 1Y53.56%
FCF growth 3Y22.92%
FCF growth 5Y18.61%
OCF growth 1Y48.31%
OCF growth 3Y21.71%
OCF growth 5Y17.35%