NICE Ltd.
NICE Ltd. Fundamental Analysis
NICE Ltd. (NICE) shows strong financial fundamentals with a PE ratio of 11.72, profit margin of 20.78%, and ROE of 16.38%. The company generates $2.9B in annual revenue with strong year-over-year growth of 15.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 88.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NICE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNICE demonstrates superior asset utilization.
Valuation Score
ExcellentNICE trades at attractive valuation levels.
Growth Score
ExcellentNICE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNICE maintains a strong and stable balance sheet.
Profitability Score
ExcellentNICE achieves industry-leading margins.
Key Financial Metrics
Is NICE Expensive or Cheap?
P/E Ratio
NICE trades at 11.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NICE's PEG of 1.18 indicates fair valuation.
Price to Book
The market values NICE Ltd. at 1.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.65 times EBITDA. This is generally considered low.
How Well Does NICE Make Money?
Net Profit Margin
For every $100 in sales, NICE Ltd. keeps $20.78 as profit after all expenses.
Operating Margin
Core operations generate 21.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.38 in profit for every $100 of shareholder equity.
ROA
NICE Ltd. generates $12.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NICE Ltd. produces operating cash flow of $717.70M, showing steady but balanced cash generation.
Free Cash Flow
NICE Ltd. generates strong free cash flow of $663.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.75 in free cash annually.
FCF Yield
NICE converts 9.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How NICE Stacks Against Its Sector Peers
| Metric | NICE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.72 | 35.19 | Better (Cheaper) |
| ROE | 16.38% | 1155.00% | Weak |
| Net Margin | 20.78% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.55 | 4.71 | Neutral |
| ROA | 12.01% | -314918.00% (disorted) | Strong |
NICE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NICE Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.06%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
132.96%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
117.76%
Industry Style: Growth, Innovation, High Beta
High Growth