NICE (TASE:NICE) - Share price, News & Analysis

Q: What is the Fair Price of NICE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

NICE (₪670.5) is trading below our estimate of [[fair value]] (₪834.56)

NICE fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

NICE Stock Overview

NICE Ltd., together with its subsidiaries, provides cloud platforms for AI-driven digital business solutions worldwide.

Rewards

Trading at 19.7% below our estimate of its fair value

Earnings are forecast to grow 19.88% per year

Earnings have grown 11.8% per year over the past 5 years

Risk Analysis

No risks detected for NICE from our risk checks.

NICE Competitors

Hilan

TASE:HLAN

₪4.1b

Top Ramdor Systems & Computers (1990)

TASE:TOPS

₪257.0m

PTC

NasdaqGS:PTC

US$12.4b

Citrix Systems

NasdaqGS:CTXS

US$12.3b

Price History & Performance

Summary of all time highs, changes and price drops for NICE
Historical stock prices
Current Share Price	₪670.50
52 Week High	₪994.80
52 Week Low	₪616.30
Beta	0.29
1 Month Change	0.06%
3 Month Change	-4.34%
1 Year Change	-18.07%
3 Year Change	32.30%
5 Year Change	147.51%
Change since IPO	4,401.51%

Recent News & Updates

Jun 26

We Think NICE (TLV:NICE) Can Manage Its Debt With Ease

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jun 10

NICE (TLV:NICE) Is Looking To Continue Growing Its Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a...

Shareholder Returns

	NICE	IL Software	IL Market
7D	-3.7%	-3.0%	0.3%
1Y	-18.1%	-19.0%	7.2%

Return vs Industry: NICE underperformed the IL Software industry which returned -14.9% over the past year.

Return vs Market: NICE underperformed the IL Market which returned 9.5% over the past year.

Price Volatility

Is NICE's price volatile compared to industry and market?
NICE volatility
NICE Average Weekly Movement	4.3%
Software Industry Average Movement	5.9%
Market Average Movement	5.6%
10% most volatile stocks in IL Market	8.9%
10% least volatile stocks in IL Market	3.7%

Stable Share Price: NICE is less volatile than 75% of IL stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NICE's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1986	7,102	Barak Eilam	https://www.nice.com

NICE Ltd., together with its subsidiaries, provides cloud platforms for AI-driven digital business solutions worldwide. It offers CXone, a cloud native open platform that supports contact centers ranging from small single sites to distributed remote agents and enterprises; Enlighten, an AI engine for CX that discovers automation opportunities for self-service; digital-entry points solutions that enable organizations to address consumers' needs; and journey orchestration solutions that empower organizations to connect and route customers to deal with the customer's request, and connecting them using real time AI-based routing. The company also provides smart self service solutions that empower organizations to build intelligent automated conversations based on data; and prepared agent solutions and tools enable contact center agents to guide and alert them in real time so they can provide resolutions; complete performance solutions that help organizations to record structured and unstructured customer interaction and transaction data; and NICE Evidencentral, an digital evidence management platform for public safety emergency communications, law enforcement, and criminal justice helps agencies.

NICE Fundamentals Summary

How do NICE's earnings and revenue compare to its market cap?
NICE fundamental statistics
Market Cap	US$12.18b
Earnings (TTM)	US$204.95m
Revenue (TTM)	US$1.99b

59.4x

P/E Ratio

6.1x

P/S Ratio

Is NICE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NICE income statement (TTM)
Revenue	US$1.99b
Cost of Revenue	US$643.60m
Gross Profit	US$1.35b
Other Expenses	US$1.15b
Earnings	US$204.95m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.23
Gross Margin	67.72%
Net Profit Margin	10.28%
Debt/Equity Ratio	24.5%

How did NICE perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NICE?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NICE. This is calculated by dividing NICE's market cap by their current preferred multiple.
What is NICE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$12.18b

NICE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.8x
Enterprise Value/EBITDA	25.4x
PEG Ratio	3x

Price to Earnings Ratio vs Peers

How does NICE's PE Ratio compare to its peers?

NICE PE Ratio vs Peers

The above table shows the PE ratio for NICE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	29.3x
HLAN Hilan	26.3x	n/a	₪4.1b
TOPS Top Ramdor Systems & Computers (1990)	20.5x	n/a	₪257.0m
PTC PTC	25.9x	19.0%	US$12.4b
CTXS Citrix Systems	44.3x	9.5%	US$12.3b
NICE NICE	59.4x	19.9%	₪42.6b

Forward PE

Price-To-Earnings vs Peers: NICE is expensive based on its Price-To-Earnings Ratio (59.4x) compared to the peer average (29.3x).

Price to Earnings Ratio vs Industry

How does NICE's PE Ratio compare vs other companies in the Asian Software Industry?

Price-To-Earnings vs Industry: NICE is expensive based on its Price-To-Earnings Ratio (59.4x) compared to the Asian Software industry average (27.8x)

Price to Earnings Ratio vs Fair Ratio

What is NICE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NICE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	59.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NICE's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of NICE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NICE (₪670.5) is trading below our estimate of fair value (₪834.56)

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

Price to Earnings Growth Ratio

PEG Ratio: NICE is poor value based on its PEG Ratio (3x)

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NICE's forecast earnings growth (19.9% per year) is above the savings rate (1.5%).

Earnings vs Market: NICE's earnings (19.9% per year) are forecast to grow faster than the IL market (3.9% per year).

High Growth Earnings: NICE's earnings are forecast to grow, but not significantly.

Revenue vs Market: NICE's revenue (12% per year) is forecast to grow faster than the IL market (3.9% per year).

High Growth Revenue: NICE's revenue (12% 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 (17.1%).

Discover growth companies

Past Performance

How has NICE performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NICE has high quality earnings.

Growing Profit Margin: NICE's current net profit margins (10.3%) are lower than last year (12%).

Past Earnings Growth Analysis

Earnings Trend: NICE's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: NICE's earnings growth over the past year (1.1%) is below its 5-year average (11.8% per year).

Earnings vs Industry: NICE earnings growth over the past year (1.1%) underperformed the Software industry 13.3%.

Return on Equity

High ROE: NICE's Return on Equity (7.2%) is considered low.

Discover strong past performing companies

Financial Health

How is NICE's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NICE's short term assets ($2.3B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: NICE's short term assets ($2.3B) exceed its long term liabilities ($619.5M).

Debt to Equity History and Analysis

Debt Level: NICE has more cash than its total debt.

Reducing Debt: NICE's debt to equity ratio has reduced from 28.1% to 24.5% over the past 5 years.

Debt Coverage: NICE's debt is well covered by operating cash flow (70.5%).

Interest Coverage: NICE earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NICE has not reported any payouts.

Discover strong dividend paying companies

Management

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

5.4yrs

Average management tenure

CEO

Barak Eilam (45 yo)

8.17yrs

Tenure

US$20,186,000

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 March 2014. He served as the He...

CEO Compensation Analysis

Compensation vs Market: Barak's total compensation ($USD20.19M) is above average for companies of similar size in the IL market ($USD2.00M).

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

Leadership Team

Experienced Management: NICE's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: NICE's board of directors are seasoned and experienced ( 11.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31