Market Cap
US$2.3b
Last Updated
2021/04/22 13:09 UTC
Data Sources
Company Financials +
Executive Summary
NIC Inc., together with its subsidiaries, provides digital government services and payment solutions that enable governments to use technology to provide various services to businesses and citizens in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: EGOV's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0.06%
EGOV
-4.3%
US IT
-2.8%
US Market
1 Year Return
35.6%
EGOV
39.6%
US IT
49.4%
US Market
Return vs Industry: EGOV underperformed the US IT industry which returned 65.4% over the past year.
Return vs Market: EGOV underperformed the US Market which returned 58.2% over the past year.
Shareholder returns
| EGOV | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.06% | -4.3% | -2.8% |
| 30 Day | 0.5% | -6.3% | -2.3% |
| 90 Day | 14.2% | -6.4% | -1.3% |
| 1 Year | 37.5%35.6% | 40.8%39.6% | 51.8%49.4% |
| 3 Year | 142.1%129.7% | 87.6%80.9% | 57.5%47.6% |
| 5 Year | 110.9%90.5% | 194.1%174.2% | 121.7%97.1% |
Long-Term 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
3 months ago | Simply Wall St
Estimating The Intrinsic Value Of NIC Inc. (NASDAQ:EGOV)3 months ago | Simply Wall St
Why Dividend Hunters Love NIC Inc. (NASDAQ:EGOV)4 months ago | Simply Wall St
Our Take On NIC's (NASDAQ:EGOV) CEO SalaryValuation
Is NIC undervalued compared to its fair value and its price relative to the market?
21.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EGOV ($34) is trading below our estimate of fair value ($43.02)
Significantly Below Fair Value: EGOV is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EGOV is good value based on its PE Ratio (33.6x) compared to the US IT industry average (39.6x).
PE vs Market: EGOV is poor value based on its PE Ratio (33.6x) compared to the US market (21.8x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate EGOV's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: EGOV is overvalued based on its PB Ratio (7.8x) compared to the US IT industry average (4.9x).
Future Growth
How is NIC forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
8.1%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if EGOV's forecast earnings growth is above the savings rate (2%).
Earnings vs Market: Insufficient data to determine if EGOV's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: EGOV's revenue (8.1% per year) is forecast to grow slower than the US market (9.6% per year).
High Growth Revenue: EGOV's revenue (8.1% 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
Past Performance
How has NIC performed over the past 5 years?
3.3%
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 (14.7%) are higher than last year (14.1%).
Past Earnings Growth Analysis
Earnings Trend: EGOV's earnings have grown by 3.3% per year over the past 5 years.
Accelerating Growth: EGOV's earnings growth over the past year (36%) exceeds its 5-year average (3.3% per year).
Earnings vs Industry: EGOV earnings growth over the past year (36%) exceeded the IT industry 8.4%.
Return on Equity
High ROE: EGOV's Return on Equity (23.4%) is considered high.
Financial Health
How is NIC's financial position?
Financial Position Analysis
Short Term Liabilities: EGOV's short term assets ($415.6M) exceed its short term liabilities ($158.0M).
Long Term Liabilities: EGOV's short term assets ($415.6M) exceed its long term liabilities ($13.2M).
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
Dividend
What is NIC current dividend yield, its reliability and sustainability?
1.06%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EGOV's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: EGOV's dividend (1.06%) is low compared to the top 25% of dividend payers in the US market (3.52%).
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 (35.6%), 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
How experienced are the management team and are they aligned to shareholders interests?
4.9yrs
Average management tenure
CEO
Harry Herington (60 yo)
13.17yrs
Tenure
US$2,420,154
Compensation
Mr. Harry H. Herington has been the Chairman of the Board at NIC Inc. since May 6, 2008 and as its Chief Executive Officer since February 4, 2008. Mr. Herington also serves as the President of National Inf...
CEO Compensation Analysis
Compensation vs Market: Harry's total compensation ($USD2.42M) is below average for companies of similar size in the US market ($USD3.75M).
Compensation vs Earnings: Harry's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: EGOV's management team is considered experienced (4.9 years average tenure).
Board Members
Experienced Board: EGOV's board of directors are seasoned and experienced ( 10.6 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
NIC Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: NIC Inc.
- Ticker: EGOV
- Exchange: NasdaqGS
- Founded: 1992
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$2.309b
- Shares outstanding: 67.91m
- Website: https://www.egov.com
Number of Employees
Location
- NIC Inc.
- 25501 West Valley Parkway
- Suite 300
- Olathe
- Kansas
- 66061
- United States
Listings
Biography
NIC Inc., together with its subsidiaries, provides digital government services and payment solutions that enable governments to use technology to provide various services to businesses and citizens in the ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/22 13:09 |
| End of Day Share Price | 2021/04/20 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.