NICE LTD - SPON ADR (NICE) Stock Fundamental Analysis
NASDAQ:NICE - Nasdaq - US6536561086 - ADR - Currency: USD
Overall NICE gets a fundamental rating of 6 out of 10. We evaluated NICE against 281 industry peers in the Software industry. While NICE has a great profitability rating, 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 would make NICE suitable 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.
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 (8.36%) than 82.92% of its industry peers.
NICE's Return On Equity of 12.33% is fine compared to the rest of the industry. NICE outperforms 79.36% of its industry peers.
NICE has a better Return On Invested Capital (10.53%) than 86.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NICE is below the industry average of 12.03%.
The 3 year average ROIC (8.49%) for NICE is below the current ROIC(10.53%), indicating increased profibility in the last year.
| 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
NICE has a Profit Margin of 16.18%. This is amongst the best in the industry. NICE outperforms 80.43% of its industry peers.
In the last couple of years the Profit Margin of NICE has grown nicely.
The Operating Margin of NICE (20.01%) is better than 87.90% of its industry peers.
NICE's Operating Margin has improved in the last couple of years.
NICE's Gross Margin of 66.75% is in line compared to the rest of the industry. NICE outperforms 49.82% of its industry peers.
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
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 remains at a similar level compared to 1 year ago.
NICE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NICE has been reduced compared to a year ago.
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/WACC1.18
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.70 indicates that NICE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.70, NICE perfoms like the industry average, outperforming 51.96% 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's Quick ratio of 1.70 is in line compared to the rest of the industry. NICE outperforms 52.31% of 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 26.51%, 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.
NICE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.05%.
The Revenue has been growing by 11.69% on average over the past years. This is quite good.
EPS 1Y (TTM)26.51%
EPS 3Y19.48%
EPS 5Y15.93%
EPS Q2Q%27.97%
Revenue 1Y (TTM)15.05%
Revenue growth 3Y12.5%
Revenue growth 5Y11.69%
Sales Q2Q%15.79%
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.
Based on estimates for the next years, NICE will show a quite strong growth in Revenue. The Revenue will grow by 8.25% on average per year.
EPS Next Y12.13%
EPS Next 2Y10.63%
EPS Next 3Y10.77%
EPS Next 5YN/A
Revenue Next Year7.07%
Revenue Next 2Y7.14%
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
NICE is valuated correctly with a Price/Earnings ratio of 13.73.
Based on the Price/Earnings ratio, NICE is valued cheaply inside the industry as 86.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.22, NICE is valued rather cheaply.
The Price/Forward Earnings ratio is 12.25, which indicates a correct valuation of NICE.
Based on the Price/Forward Earnings ratio, NICE is valued cheaper than 89.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, NICE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NICE is valued cheaper than 91.81% of the companies in the same industry.
90.04% 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 | 13.5 | ||
| EV/EBITDA | 9.98 |
4.3 Compensation for Growth
The 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)1.13
PEG (5Y)0.86
EPS Next 2Y10.63%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
No dividends for NICE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
157.39
+1.35 (+0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners13.41%
Inst Owner Change-0.11%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.89B
Analysts81.25
Price Target199.67 (26.86%)
Short Float %2.77%
Short Ratio2.56
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)-0.36%
PT rev (3m)-19.43%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-2.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 12.25 | ||
| P/S | 3.62 | ||
| P/FCF | 13.5 | ||
| P/OCF | 11.88 | ||
| P/B | 2.76 | ||
| P/tB | 6.56 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)11.46
EY7.28%
EPS(NY)12.85
Fwd EY8.17%
FCF(TTM)11.66
FCFY7.41%
OCF(TTM)13.24
OCFY8.41%
SpS43.51
BVpS57.1
TBVpS24
PEG (NY)1.13
PEG (5Y)0.86
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
WACC8.92%
ROIC/WACC1.18
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)26.51%
EPS 3Y19.48%
EPS 5Y15.93%
EPS Q2Q%27.97%
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%15.79%
Revenue Next Year7.07%
Revenue Next 2Y7.14%
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%