TASE:NICE

Stock Analysis Report

Executive Summary

NICE Ltd. provides enterprise software solutions worldwide.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NICE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.1%

NICE

0.5%

IL Software

-0.1%

IL Market


1 Year Return

37.4%

NICE

44.6%

IL Software

19.4%

IL Market

Return vs Industry: NICE exceeded the IL Software industry which returned 46% over the past year.

Return vs Market: NICE exceeded the IL Market which returned 19.8% over the past year.


Shareholder returns

NICEIndustryMarket
7 Day-4.1%0.5%-0.1%
30 Day-3.8%0.3%-0.9%
90 Day10.6%15.9%3.9%
1 Year37.4%37.4%44.8%44.6%22.6%19.4%
3 Year132.2%132.2%131.7%128.7%48.8%36.4%
5 Year152.8%147.9%167.0%159.5%68.4%46.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NICE undervalued compared to its fair value and its price relative to the market?

5.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NICE (₪618.5) is trading below our estimate of fair value (₪619.66)

Significantly Below Fair Value: NICE is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NICE is poor value based on its PE Ratio (60.5x) compared to the Software industry average (17.1x).

PE vs Market: NICE is poor value based on its PE Ratio (60.5x) compared to the IL market (14x).


Price to Earnings Growth Ratio

PEG Ratio: NICE is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: NICE is overvalued based on its PB Ratio (5x) compared to the IL Software industry average (2.2x).


Next Steps

Future Growth

How is NICE forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NICE's forecast earnings growth (24.6% per year) is above the savings rate (0.9%).

Earnings vs Market: NICE's earnings (24.6% per year) are forecast to grow faster than the IL market (18% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NICE's revenue (7.7% per year) is forecast to grow faster than the IL market (5% per year).

High Growth Revenue: NICE's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NICE's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has NICE performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NICE has high quality earnings.

Growing Profit Margin: NICE's current net profit margins (11.8%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: NICE's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: NICE's earnings growth over the past year (16.7%) exceeds its 5-year average (9.3% per year).

Earnings vs Industry: NICE earnings growth over the past year (16.7%) underperformed the Software industry 16.7%.


Return on Equity

High ROE: NICE's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NICE's financial position?


Financial Position Analysis

Short Term Liabilities: NICE's short term assets ($875.7M) exceed its short term liabilities ($689.4M).

Long Term Liabilities: NICE's short term assets ($875.7M) exceed its long term liabilities ($663.3M).


Debt to Equity History and Analysis

Debt Level: NICE's debt to equity ratio (20.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NICE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NICE's debt is well covered by operating cash flow (80.5%).

Interest Coverage: NICE's interest payments on its debt are well covered by EBIT (53.9x coverage).


Balance Sheet

Inventory Level: NICE has a low level of unsold assets or inventory.

Debt Coverage by Assets: NICE's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.8%markettop25%5.3%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NICE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NICE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NICE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NICE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NICE is not paying a notable dividend for the IL market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NICE's dividend in 3 years as they are not forecast to pay a notable one for the IL market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Barak Eilam (43yo)

5.8yrs

Tenure

US$10,416,000

Compensation

Mr. Barak Eilam has been the Chief Executive Officer of NICE Ltd. since April 2014. Mr. Eilam served as the President of NICE Americas at NICE Systems Ltd. from July 2012 to April 2014. He served as the He ...


CEO Compensation Analysis

Compensation vs Market: Barak's total compensation ($USD10.42M) is above average for companies of similar size in the IL market ($USD1.20M).

Compensation vs Earnings: Barak's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Barak Eilam
Chief Executive Officer5.8yrsUS$10.42mno data
Beth Gaspich
Chief Financial Officer3.3yrsUS$2.11mno data
Paul Jarman
Chief Executive Officer of InContact3.3yrsUS$4.04mno data
Yaron Hertz
President of Nice Americas0yrsUS$2.30mno data
Tali Mirsky-Lachman
Corporate VP1.9yrsno datano data
Eran Liron
Executive Vice President of Marketing & Corporate Development6.3yrsno datano data
Shiri Neder
Executive Vice President of Human Resources2.1yrsno datano data
Barry Cooper
President of Enterprise Group0yrsno datano data
Darren Rushworth
President of NICE Asia Pacific3.1yrsno datano data
Craig Costigan
Chief Executive Officer of NICE Actimize2.1yrsno datano data

3.2yrs

Average Tenure

48.5yo

Average Age

Experienced Management: NICE's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dan Falk
Outside Director19.1yrsno datano data
Yehoshua Ehrlich
Independent Director7.4yrsno datano data
Rimon Ben-Shaoul
Independent Director18.4yrsno datano data
David Kostman
Chairman of the Board7yrsno datano data
Zehava Simon
Outside Director4.6yrsno datano data
Leo Apotheker
Independent Director6.5yrsno datano data
Joseph Cowan
Independent Director6.5yrsno datano data
Yocheved Dvir
Outside Director12.1yrsno datano data

7.2yrs

Average Tenure

68yo

Average Age

Experienced Board: NICE's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NICE Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NICE Ltd.
  • Ticker: NICE
  • Exchange: TASE
  • Founded: 1986
  • Industry: Application Software
  • Sector: Software
  • Market Cap: ₪37.516b
  • Shares outstanding: 62.13m
  • Website: https://www.nice.com

Number of Employees


Location

  • NICE Ltd.
  • 13 Zarchin Street
  • PO Box 690
  • Ra’anana
  • 4310602
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NICETASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSNov 1995
NCSY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1995
NICENasdaqGS (Nasdaq Global Select)ADR-EACH CNV INTO 1 ORD ILS1USUSDJan 1996
NSYDB (Deutsche Boerse AG)ADR-EACH CNV INTO 1 ORD ILS1DEEURJan 1996

Biography

NICE Ltd. provides enterprise software solutions worldwide. The company operates in two segments, Customer Engagement, and Financial Crime and Compliance. The Customer Engagement segment offers platform and solutions that empower businesses to deliver consistent and personalized experience across the customer journey, and optimize business performance and ensure compliance. Its solutions are delivered in the cloud, as well as on premise. This segment serves contact centers, back office operations, and retail branches in various industries. The Financial Crime and Compliance segment provides real time and cross-channel fraud prevention, anti-money laundering, brokerage compliance, and enterprise-wide case management services for financial institutions, regulatory authorities, and fintech companies. The company also offers professional and support services covering various stages of the technology lifecycle. It sells its solutions and products directly to customers, as well as indirectly through selected partners. NICE Ltd. has strategic alliances with Accenture, BT, ConvergeOne, Dimension Data, Deloitte, IBM, Infosys, IPC, Motorola, PWC, RingCentral, Salesforce, Servion, Tata Consulting Services, Microsoft, Verizon, and Crowe LLP. The company was formerly known as NICE-Systems Ltd. and changed its name to NICE Ltd. in June 2016. NICE Ltd. was founded in 1986 and is headquartered in Ra’anana, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 16:39
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.