DB:NAI

Stock Analysis Report

Executive Summary

NIC Inc., together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.

Risks

  • NIC has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has NIC's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

DB:NAI

2.1%

DE IT

0.4%

DE Market


1 Year Return

48.4%

DB:NAI

-13.3%

DE IT

-4.5%

DE Market

NAI outperformed the IT industry which returned -13.2% over the past year.

NAI outperformed the Market in Germany which returned -3.8% over the past year.


Share holder returns

NAIIndustryMarket
7 Day3.5%2.1%0.4%
30 Day3.8%8.7%6.4%
90 Day33.9%0.8%0.9%
1 Year51.4%48.4%-12.9%-13.3%-1.5%-4.5%
3 Year2.0%-5.8%161.6%155.2%18.4%8.3%
5 Year62.4%41.7%334.6%315.9%32.0%14.0%

Price Volatility Vs. Market

How volatile is NIC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NIC undervalued based on future cash flows and its price relative to the stock market?

27.8x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

NIC's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

NIC's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

NIC is overvalued based on earnings compared to the DE IT industry average.

NIC is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

NIC is poor value based on expected growth next year.


Price Based on Value of Assets

NIC is overvalued based on assets compared to the DE IT industry average.


Next Steps

Future Growth

How is NIC expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NIC's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).

NIC's earnings are expected to grow by 11.1% yearly, however this is not considered high growth (20% yearly).

NIC's revenue growth is expected to exceed the Germany market average.

NIC's earnings growth is positive but not above the Germany market average.

NIC's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if NIC will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has NIC performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NIC's year on year earnings growth rate has been positive over the past 5 years.

NIC's 1-year earnings growth is negative, it can't be compared to the 5-year average.

NIC's 1-year earnings growth is negative, it can't be compared to the DE IT industry average.


Return on Equity

NIC has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

NIC used its assets more efficiently than the DE IT industry average last year based on Return on Assets.


Return on Capital Employed

NIC's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is NIC's financial position?


Financial Position Analysis

NIC is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NIC's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

NIC has no debt.

NIC has not taken on any debt in the past 5 years.

NIC has no debt, it does not need to be covered by operating cash flow.

NIC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

NIC has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is NIC's current dividend yield, its reliability and sustainability?

1.50%

Current Dividend Yield


Dividend Yield and Payments Analysis

NIC's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.41%).

NIC's dividend is below the markets top 25% of dividend payers in Germany (3.85%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of NIC's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average management tenure


CEO

Harry Herington (59yo)

11.6yrs

Tenure

US$2,344,812

Compensation

Mr. Harry H. Herington has been the Chairman of the Board at NIC Inc. since May 6, 2008 and as its Chief Executive Officer since February 4, 2008. Mr. Herington also serves as the President of National Inf ...


CEO Compensation Analysis

Harry's remuneration is higher than average for companies of similar size in Germany.

Harry's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.4yrs

Average Tenure

55yo

Average Age

The average tenure for the NIC management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.1yrs

Average Tenure

59yo

Average Age

The average tenure for the NIC board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

NIC individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$189,48630 Aug 19
William Lyons
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$18.95

Ownership Breakdown


Management Team

  • Harry Herington (59yo)

    Chairman of the Board & CEO

    • Tenure: 11.6yrs
    • Compensation: US$2.34m
  • Stephen Kovzan (50yo)

    Chief Financial Officer

    • Tenure: 12.1yrs
    • Compensation: US$1.02m
  • Ron Thornburgh (56yo)

    Vice President of Digital Government & Advocacy

    • Tenure: 2.9yrs
    • Compensation: US$521.17k
  • Brian Anderson

    Chief Technology Officer

    • Tenure: 0.4yrs
  • Angela Davied

    Vice President of Corporate Communications

    • Tenure: 9.2yrs
  • Jayne Holland (55yo)

    Chief Security Officer

    • Tenure: 12.8yrs
    • Compensation: US$912.83k
  • William Van Asselt (44yo)

    General Counsel & Secretary

    • Tenure: 3.7yrs
    • Compensation: US$478.53k
  • Doug Rogers

    Senior Vice President of Business Development

    • Tenure: 1.9yrs
  • Liz Thomas

    Vice President of Finance Operations

    • Tenure: 0yrs

Board Members

  • Pete Wilson (85yo)

    Director

    • Tenure: 20.2yrs
    • Compensation: US$155.66k
  • Harry Herington (59yo)

    Chairman of the Board & CEO

    • Tenure: 11.6yrs
    • Compensation: US$2.34m
  • Sandy Kemper (53yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$164.41k
  • Bill Lyons (63yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$161.91k
  • Art Burtscher (68yo)

    Lead Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$176.91k
  • Tony Scott (67yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$65.88k
  • Brad Henry (56yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$155.66k
  • Raji Arasu (49yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$155.66k
  • Jay Vijayan (46yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$65.88k

Company Information

NIC Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NIC Inc.
  • Ticker: NAI
  • Exchange: DB
  • Founded: 1991
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$1.459b
  • Listing Market Cap: US$1.320b
  • Shares outstanding: 66.96m
  • Website: https://www.egov.com

Number of Employees


Location

  • NIC Inc.
  • 25501 West Valley Parkway
  • Suite 300
  • Olathe
  • Kansas
  • 66061
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGOVNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1999
NAIDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1999
0K48LSE (London Stock Exchange)YesCommon StockGBUSDJul 1999

Biography

NIC Inc., together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 21:46
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.