NICE LTD - SPON ADR (NICE) Stock Fundamental Analysis
USA - NASDAQ:NICE - US6536561086 - ADR
129.88 USD
+1.54 (+1.2%)
129.88 USD
0 (0%)
NICE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 282 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes NICE very considerable for value investing!
1. Profitability
1.1 Basic Checks
NICE had positive earnings in the past year.
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's Return On Assets of 10.06% is amongst the best of the industry. NICE outperforms 85.46% of its industry peers.
Looking at the Return On Equity, with a value of 14.31%, NICE belongs to the top of the industry, outperforming 81.91% of the companies in the same industry.
NICE has a Return On Invested Capital of 11.37%. This is amongst the best in the industry. NICE outperforms 87.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NICE is below the industry average of 11.88%.
The 3 year average ROIC (8.49%) for NICE is below the current ROIC(11.37%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 18.81%. This is amongst the best in the industry. NICE outperforms 82.98% of its industry peers.
In the last couple of years the Profit Margin of NICE has grown nicely.
NICE has a better Operating Margin (21.39%) than 87.59% of its industry peers.
In the last couple of years the Operating Margin of NICE has grown nicely.
The Gross Margin of NICE (67.03%) is comparable to the rest of the industry.
NICE's Gross Margin has been stable in the last couple of years.
| 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.
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 | 0.7 | ||
| Altman-Z | N/A |
ROIC/WACC1.27
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.83 indicates that NICE should not have too much problems paying its short term obligations.
NICE has a Current ratio (1.83) which is comparable to the rest of the industry.
NICE has a Quick Ratio of 1.83. 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 1.83 is in line compared to the rest of the industry. NICE outperforms 58.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
NICE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.59%, 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 15.93% yearly.
Looking at the last year, NICE shows a quite strong growth in Revenue. The Revenue has grown by 11.39% 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)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.
NICE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.30% yearly.
EPS Next Y14.22%
EPS Next 2Y11.8%
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NICE is valuated reasonably with a Price/Earnings ratio of 10.77.
Based on the Price/Earnings ratio, NICE is valued cheaply inside the industry as 89.36% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.40. NICE is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.13, which indicates a very decent valuation of NICE.
Based on the Price/Forward Earnings ratio, NICE is valued cheaper than 92.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. NICE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NICE is valued cheaper than 93.97% of the companies 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 92.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.15 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
The 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.
NICE's earnings are expected to grow with 12.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)0.68
EPS Next 2Y11.8%
EPS Next 3Y12.4%
5. Dividend
5.1 Amount
NICE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
129.88
+1.54 (+1.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners12.48%
Inst Owner Change-0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.02B
Analysts81.33
Price Target189.1 (45.6%)
Short Float %3.03%
Short Ratio2.67
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)-5.52%
PT rev (3m)-8.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 9.13 | ||
| P/S | 2.83 | ||
| P/FCF | 12.15 | ||
| P/OCF | 10.62 | ||
| P/B | 2.15 | ||
| P/tB | 4.79 | ||
| EV/EBITDA | 7.1 |
EPS(TTM)12.06
EY9.29%
EPS(NY)14.23
Fwd EY10.96%
FCF(TTM)10.69
FCFY8.23%
OCF(TTM)12.23
OCFY9.41%
SpS45.97
BVpS60.43
TBVpS27.1
PEG (NY)0.76
PEG (5Y)0.68
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
WACC8.98%
ROIC/WACC1.27
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 Y14.22%
EPS Next 2Y11.8%
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 Year21.54%
EBIT Next 3Y9.22%
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%