Market Cap
US$1.6b
Last Updated
2019/11/17 23:42 UTC
Data Sources
Company Financials +
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
Flawless balance sheet with limited growth.
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
Stable Share Price: EGOV has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.6%
EGOV
1.7%
US IT
0.7%
US Market
1 Year Return
76.5%
EGOV
30.9%
US IT
13.7%
US Market
Return vs Industry: EGOV exceeded the US IT industry which returned 30.9% over the past year.
Return vs Market: EGOV exceeded the US Market which returned 13.7% over the past year.
Shareholder returns
| EGOV | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 1.7% | 0.7% |
| 30 Day | 13.7% | 3.9% | 4.7% |
| 90 Day | 14.5% | 0.4% | 6.1% |
| 1 Year | 80.0%76.5% | 32.2%30.9% | 16.2%13.7% |
| 3 Year | 0.9%-4.2% | 96.0%87.8% | 48.8%39.2% |
| 5 Year | 44.8%30.0% | 133.9%113.1% | 62.5%44.5% |
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
4 days ago | Simply Wall St
Is NIC Inc. (NASDAQ:EGOV) Expensive For A Reason? A Look At Its Intrinsic Value2 weeks ago | Simply Wall St
NIC Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions2 weeks ago | Simply Wall St
Does Market Volatility Impact NIC Inc.'s (NASDAQ:EGOV) Share Price?Valuation
Is NIC undervalued compared to its fair value and its price relative to the market?
31.55x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EGOV ($23.51) is trading above our estimate of fair value ($18.93)
Significantly Below Fair Value: EGOV is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EGOV is poor value based on its PE Ratio (31.5x) compared to the IT industry average (31.4x).
PE vs Market: EGOV is poor value based on its PE Ratio (31.5x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: EGOV is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: EGOV is overvalued based on its PB Ratio (6.6x) compared to the US IT industry average (4x).
Next Steps
Future Growth
How is NIC forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
12.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EGOV's forecast earnings growth (12.5% per year) is above the savings rate (2.7%).
Earnings vs Market: EGOV's earnings (12.5% per year) are forecast to grow slower than the US market (14.4% per year).
High Growth Earnings: EGOV's earnings are forecast to grow, but not significantly.
Revenue vs Market: EGOV's revenue (8.2% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: EGOV's revenue (8.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if EGOV's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has NIC performed over the past 5 years?
7.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EGOV has a high level of non-cash earnings.
Growing Profit Margin: EGOV's current net profit margins (14.4%) are lower than last year (16.8%).
Past Earnings Growth Analysis
Earnings Trend: EGOV's earnings have grown by 7.7% per year over the past 5 years.
Accelerating Growth: EGOV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EGOV had negative earnings growth (-15.1%) over the past year, making it difficult to compare to the IT industry average (17%).
Return on Equity
High ROE: EGOV's Return on Equity (21%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is NIC's financial position?
Financial Position Analysis
Short Term Liabilities: EGOV's short term assets ($328.3M) exceeds its short term liabilities ($122.4M)
Long Term Liabilities: EGOV's short term assets ($328.3M) exceeds its long term liabilities (17.4M)
Debt to Equity History and Analysis
Debt Level: EGOV is debt free.
Reducing Debt: EGOV has not had any debt for past 5 years.
Debt Coverage: EGOV has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: EGOV has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: EGOV has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if EGOV's debt is covered by short term assets.
Next Steps
Dividend
What is NIC's current dividend yield, its reliability and sustainability?
1.36%
Current Dividend Yield
Upcoming Dividend Payment
Purchase NIC before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: EGOV's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: EGOV's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (3.65%).
Stability and Growth of Payments
Stable Dividend: EGOV's dividend payments have been volatile in the past 10 years.
Growing Dividend: EGOV's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.9%), EGOV's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
What is the CEO of NIC's salary, the management and board of directors tenure and is there insider trading?
6.6yrs
Average management tenure
CEO
Harry Herington (59yo)
11.8yrs
Tenure
US$2,344,812
Compensation
Mr. Harry H. Herington has been the Chairman of the Board at NIC Inc. since May 6, 2008 and as its Chief Executive Officer since February 4, 2008. Mr. Herington also serves as the President of National Inf ...
CEO Compensation Analysis
Compensation vs Market: Harry's total compensation ($USD2.34M) is below average for companies of similar size in the US market ($USD3.92M).
Compensation vs Earnings: Harry's compensation has been consistent with company performance over the past year.
Management Age and Tenure
6.6yrs
Average Tenure
55yo
Average Age
Experienced Management: EGOV's management team is seasoned and experienced (6.6 years average tenure).
Board Age and Tenure
10.3yrs
Average Tenure
59yo
Average Age
Experienced Board: EGOV's board of directors are seasoned and experienced ( 10.3 years average tenure).
Insider Trading
Insider Buying: EGOV insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | US$20.96 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Harry Herington (59yo)
Chairman of the Board & CEO
- Tenure: 11.8yrs
- Compensation: US$2.34m
Stephen Kovzan (50yo)
Chief Financial Officer
- Tenure: 12.3yrs
- Compensation: US$1.02m
Ron Thornburgh (56yo)
Vice President of Digital Government & Advocacy
- Tenure: 3.1yrs
- Compensation: US$521.17k
Brian Anderson
Chief Technology Officer
- Tenure: 0.6yrs
Angela Davied
Vice President of Corporate Communications
- Tenure: 9.3yrs
Jayne Holland (55yo)
Chief Security Officer
- Tenure: 12.9yrs
- Compensation: US$912.83k
William Van Asselt (44yo)
General Counsel & Secretary
- Tenure: 3.8yrs
- Compensation: US$478.53k
Doug Rogers
Senior Vice President of Business Development
- Tenure: 2.1yrs
Liz Thomas
Vice President of Finance Operations
- Tenure: 0yrs
Board Members
Pete Wilson (85yo)
Independent Director
- Tenure: 20.3yrs
- Compensation: US$155.66k
Harry Herington (59yo)
Chairman of the Board & CEO
- Tenure: 11.8yrs
- Compensation: US$2.34m
Sandy Kemper (53yo)
Independent Director
- Tenure: 12yrs
- Compensation: US$164.41k
Bill Lyons (63yo)
Independent Director
- Tenure: 10.3yrs
- Compensation: US$161.91k
Art Burtscher (68yo)
Lead Independent Director
- Tenure: 11.8yrs
- Compensation: US$176.91k
Tony Scott (67yo)
Director
- Tenure: 1.4yrs
- Compensation: US$65.88k
Brad Henry (56yo)
Independent Director
- Tenure: 8.1yrs
- Compensation: US$155.66k
Raji Arasu (49yo)
Independent Director
- Tenure: 4.5yrs
- Compensation: US$155.66k
Jay Vijayan (46yo)
Director
- Tenure: 1.4yrs
- Compensation: US$65.88k
Company Information
NIC Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: NIC Inc.
- Ticker: EGOV
- Exchange: NasdaqGS
- Founded: 1991
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$1.574b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EGOV | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jul 1999 |
| NAI | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1999 |
| 0K48 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/17 23:42 |
| End of Day Share Price | 2019/11/15 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.