NICE LTD - SPON ADR (NICE)
US6536561086 - ADR
NICE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. NICE scores excellent on profitability, but there are some minor concerns on its financial health. NICE is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years NICE always reported a positive cash flow from operatings.
1.2 Ratios
NICE has a better Return On Assets (6.58%) than 84.06% of its industry peers.
The Return On Equity of NICE (10.07%) is better than 83.70% of its industry peers.
NICE's Return On Invested Capital of 8.48% is amongst the best of the industry. NICE outperforms 85.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NICE is below the industry average of 10.19%.
The last Return On Invested Capital (8.48%) for NICE is above the 3 year average (7.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 10.07% | ||
| ROIC | 8.48% |
ROA(3y)5.42%
ROA(5y)5.21%
ROE(3y)8.62%
ROE(5y)8.35%
ROIC(3y)7.04%
ROIC(5y)6.73%
1.3 Margins
Looking at the Profit Margin, with a value of 14.15%, NICE belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
In the last couple of years the Profit Margin of NICE has grown nicely.
The Operating Margin of NICE (18.90%) is better than 89.86% of its industry peers.
In the last couple of years the Operating Margin of NICE has grown nicely.
NICE has a Gross Margin of 67.69%. This is comparable to the rest of the industry: NICE outperforms 52.90% of 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 | 18.9% | ||
| PM (TTM) | 14.15% | ||
| GM | 67.69% |
OM growth 3Y8.5%
OM growth 5Y6.54%
PM growth 3Y5.85%
PM growth 5Y5.11%
GM growth 3Y0.9%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NICE is destroying value.
The number of shares outstanding for NICE has been reduced compared to 1 year ago.
Compared to 5 years ago, NICE has more shares outstanding
The debt/assets ratio for NICE has been reduced compared to a year ago.
2.2 Solvency
NICE has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.40, NICE is in the better half of the industry, outperforming 72.46% of the companies in the same industry.
NICE has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.14, NICE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.98
WACC8.62%
2.3 Liquidity
NICE has a Current Ratio of 2.06. This indicates that NICE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.06, NICE is in the better half of the industry, outperforming 60.14% of the companies in the same industry.
NICE has a Quick Ratio of 2.06. This indicates that NICE is financially healthy and has no problem in meeting its short term obligations.
NICE's Quick ratio of 2.06 is fine compared to the rest of the industry. NICE outperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
NICE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.34%, which is quite good.
NICE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.44% yearly.
NICE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.00%.
The Revenue has been growing by 10.48% on average over the past years. This is quite good.
EPS 1Y (TTM)15.34%
EPS 3Y15.33%
EPS 5Y13.44%
EPS growth Q2Q15.63%
Revenue 1Y (TTM)9%
Revenue growth 3Y12.99%
Revenue growth 5Y10.48%
Revenue growth Q2Q9.61%
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 15.98% on average per year.
The Revenue is expected to grow by 12.56% on average over the next years. This is quite good.
EPS Next Y22.21%
EPS Next 2Y18.24%
EPS Next 3Y15.98%
EPS Next 5YN/A
Revenue Next Year14.87%
Revenue Next 2Y13.3%
Revenue Next 3Y12.56%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NICE is valuated rather expensively with a Price/Earnings ratio of 24.90.
NICE's Price/Earnings ratio is rather cheap when compared to the industry. NICE is cheaper than 80.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.91. NICE is around the same levels.
NICE is valuated rather expensively with a Price/Forward Earnings ratio of 20.37.
82.25% of the companies in the same industry are more expensive than NICE, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.51. NICE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 20.37 |
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 84.78% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NICE is valued a bit cheaper than the industry average as 75.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.14 | ||
| EV/EBITDA | 20.25 |
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.
A more expensive valuation may be justified as NICE's earnings are expected to grow with 15.98% in the coming years.
PEG (NY)1.12
PEG (5Y)1.85
EPS Next 2Y18.24%
EPS Next 3Y15.98%
5. Dividend
5.1 Amount
NICE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NICE LTD - SPON ADR
NASDAQ:NICE (5/15/2024, 5:57:12 PM)
After market: 229 +0.9 (+0.39%)228.1
+4.1 (+1.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
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Market Cap14.38B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.9 | ||
| Fwd PE | 20.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.12
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 10.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.9% | ||
| PM (TTM) | 14.15% | ||
| GM | 67.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.34%
EPS 3Y15.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y22.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9%
Revenue growth 3Y12.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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