NIC
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 last earnings update was 27 days ago. More info.
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- NIC has significant price volatility in the past 3 months.
EGOV Share Price and Events
7 Day Returns
1 Year Returns
EGOV Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| NIC (EGOV) | 1.1% | -2.5% | 42.2% | 21.9% | -0.8% | -9.8% |
| US IT | 1.7% | 4.9% | 22.3% | 15.5% | 80.2% | 94.8% |
| US Market | 1.2% | 2.1% | 14.6% | 3% | 39% | 43.5% |
1 Year Return vs Industry and Market
- EGOV outperformed the IT industry which returned 15.5% over the past year.
- EGOV outperformed the Market in United States of America which returned 3% over the past year.
Value
Is NIC undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
NIC
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for NIC.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 5 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.06 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.064 (1 + (1- 21%) (0%)) |
1.043 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.04 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.043 * 5.96%) |
8.95% |
Discounted Cash Flow Calculation for NasdaqGS:EGOV using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for NIC is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.95%) |
|
|---|---|---|---|
| 2019 | 54.43 | Est @ -6.26% | 49.96 |
| 2020 | 52.49 | Est @ -3.56% | 44.23 |
| 2021 | 51.61 | Est @ -1.67% | 39.92 |
| 2022 | 51.43 | Est @ -0.35% | 36.51 |
| 2023 | 51.73 | Est @ 0.57% | 33.70 |
| 2024 | 52.36 | Est @ 1.22% | 31.31 |
| 2025 | 53.23 | Est @ 1.67% | 29.22 |
| 2026 | 54.29 | Est @ 1.99% | 27.36 |
| 2027 | 55.49 | Est @ 2.21% | 25.66 |
| 2028 | 56.81 | Est @ 2.37% | 24.11 |
| Present value of next 10 years cash flows | $341.98 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $56.81 × (1 + 2.73%) ÷ (8.95% – 2.73%) |
$938.80 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $938.80 ÷ (1 + 8.95%)10 |
$398.52 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $341.98 + $398.52 |
$740.50 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $740.50 / 66.63 |
$11.11 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $11.11 |
| Current discount | Discount to share price of
$16.95
= -1 x ($16.95 - $11.11) / $11.11 |
-52.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of NIC is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for NIC's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
NIC's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $0.87 |
| NasdaqGS:EGOV Share Price ** | NasdaqGS (2019-03-20) in USD | $16.95 |
| United States of America IT Industry PE Ratio | Median Figure of 78 Publicly-Listed IT Companies | 30.36x |
| United States of America Market PE Ratio | Median Figure of 3,058 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of NIC.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:EGOV Share Price ÷ EPS (both in USD) = 16.95 ÷ 0.87 |
19.56x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- NIC is good value based on earnings compared to the US IT industry average.
- NIC is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
NIC's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 19.56x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts |
-3.4%per year |
| United States of America IT Industry PEG Ratio | Median Figure of 64 Publicly-Listed IT Companies | 2.42x |
| United States of America Market PEG Ratio | Median Figure of 2,103 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 19.56x ÷ -3.4% |
-5.74x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- NIC earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
NIC's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $3.18 |
| NasdaqGS:EGOV Share Price * | NasdaqGS (2019-03-20) in USD | $16.95 |
| United States of America IT Industry PB Ratio | Median Figure of 122 Publicly-Listed IT Companies | 4.43x |
| United States of America Market PB Ratio | Median Figure of 5,156 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:EGOV Share Price ÷ Book Value per Share (both in USD) = 16.95 ÷ 3.18 |
5.33x |
* Primary Listing of NIC.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- NIC is overvalued based on assets compared to the US IT industry average.
Value checks
We assess NIC's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) NIC has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is NIC expected to perform in the next 1 to 3 years based on estimates from 5 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- NIC's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
- NIC's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
- NIC's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:EGOV Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts | -3.4% |
| NasdaqGS:EGOV Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts | 2.3% |
| United States of America IT Industry Earnings Growth Rate | Market Cap Weighted Average | 15.7% |
| United States of America IT Industry Revenue Growth Rate | Market Cap Weighted Average | 9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 5 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 362 | 54 | 4 | |
| 2019-12-31 | 340 | 48 | 5 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 345 | 70 | 58 |
| 2018-09-30 | 350 | 66 | 59 |
| 2018-06-30 | 347 | 69 | 57 |
| 2018-03-31 | 340 | 69 | 53 |
| 2017-12-31 | 337 | 65 | 51 |
| 2017-09-30 | 331 | 70 | 54 |
| 2017-06-30 | 327 | 71 | 56 |
| 2017-03-31 | 323 | 76 | 56 |
| 2016-12-31 | 318 | 81 | 55 |
| 2016-09-30 | 311 | 74 | 51 |
| 2016-06-30 | 305 | 65 | 47 |
| 2016-03-31 | 300 | 57 | 46 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 5 Analyst Estimates (S&P Global) | See Below |
All data from NIC Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 0.80 | 0.83 | 0.78 | 4.00 |
| 2019-12-31 | 0.72 | 0.73 | 0.70 | 5.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 0.87 |
| 2018-09-30 | 0.88 |
| 2018-06-30 | 0.86 |
| 2018-03-31 | 0.79 |
| 2017-12-31 | 0.77 |
| 2017-09-30 | 0.82 |
| 2017-06-30 | 0.85 |
| 2017-03-31 | 0.85 |
| 2016-12-31 | 0.84 |
| 2016-09-30 | 0.77 |
| 2016-06-30 | 0.72 |
| 2016-03-31 | 0.69 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess NIC's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
NIC has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has NIC performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
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 exceeds its 5-year average (12.7% vs 12.6%)
- NIC's earnings growth has not exceeded the US IT industry average in the past year (12.7% vs 16%).
Earnings and Revenue History
All data from NIC Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 344.90 | 57.64 | 56.69 | |
| 2018-09-30 | 349.72 | 58.64 | 55.74 | |
| 2018-06-30 | 347.23 | 56.79 | 53.14 | |
| 2018-03-31 | 340.06 | 52.62 | 52.27 | |
| 2017-12-31 | 336.51 | 51.14 | 50.78 | |
| 2017-09-30 | 331.38 | 53.92 | 49.76 | |
| 2017-06-30 | 327.22 | 56.13 | 49.35 | |
| 2017-03-31 | 322.70 | 56.42 | 47.38 | |
| 2016-12-31 | 317.92 | 55.34 | 47.06 | |
| 2016-09-30 | 310.73 | 50.72 | 45.35 | |
| 2016-06-30 | 305.41 | 47.26 | 44.25 | |
| 2016-03-31 | 300.41 | 45.51 | 43.90 | |
| 2015-12-31 | 292.38 | 41.59 | 43.10 | |
| 2015-09-30 | 287.24 | 40.91 | 41.42 | |
| 2015-06-30 | 281.72 | 38.54 | 41.24 | |
| 2015-03-31 | 277.06 | 38.26 | 40.27 | |
| 2014-12-31 | 272.10 | 38.69 | 38.94 | |
| 2014-09-30 | 266.87 | 36.60 | 26.57 | |
| 2014-06-30 | 258.67 | 31.38 | 34.46 | |
| 2014-03-31 | 253.45 | 31.15 | 36.18 | |
| 2013-12-31 | 249.28 | 31.71 | 37.98 | |
| 2013-09-30 | 244.73 | 34.12 | 45.67 | |
| 2013-06-30 | 236.61 | 35.00 | 36.50 | |
| 2013-03-31 | 222.65 | 30.33 | 34.72 | |
| 2012-12-31 | 210.17 | 26.04 | 28.92 | |
| 2012-09-30 | 198.98 | 22.96 | 31.89 | |
| 2012-06-30 | 192.47 | 23.78 | 30.54 | |
| 2012-03-31 | 186.91 | 23.22 | 29.78 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- NIC has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- NIC used its assets more efficiently than the US IT industry average last year based on Return on Assets.
- NIC's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess NIC's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
NIC has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is NIC's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up NIC's finances.
The net worth of a company is the difference between its assets and liabilities.
- 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.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- NIC has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from NIC Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 211.69 | 0.00 | 191.70 |
| 2018-09-30 | 205.87 | 0.00 | 181.03 |
| 2018-06-30 | 193.52 | 0.00 | 172.73 |
| 2018-03-31 | 180.35 | 0.00 | 162.36 |
| 2017-12-31 | 168.24 | 0.00 | 160.78 |
| 2017-09-30 | 161.61 | 0.00 | 152.30 |
| 2017-06-30 | 151.86 | 0.00 | 135.39 |
| 2017-03-31 | 142.78 | 0.00 | 123.56 |
| 2016-12-31 | 133.90 | 0.00 | 127.01 |
| 2016-09-30 | 161.84 | 0.00 | 151.43 |
| 2016-06-30 | 144.23 | 0.00 | 128.10 |
| 2016-03-31 | 129.61 | 0.00 | 105.78 |
| 2015-12-31 | 115.81 | 0.00 | 98.39 |
| 2015-09-30 | 142.24 | 0.00 | 122.44 |
| 2015-06-30 | 127.92 | 0.00 | 107.41 |
| 2015-03-31 | 114.99 | 0.00 | 92.10 |
| 2014-12-31 | 104.14 | 0.00 | 87.98 |
| 2014-09-30 | 127.20 | 0.00 | 105.96 |
| 2014-06-30 | 114.83 | 0.00 | 95.66 |
| 2014-03-31 | 102.25 | 0.00 | 81.60 |
| 2013-12-31 | 91.94 | 0.00 | 74.25 |
| 2013-09-30 | 108.05 | 0.00 | 90.93 |
| 2013-06-30 | 102.00 | 0.00 | 80.69 |
| 2013-03-31 | 89.91 | 0.00 | 63.72 |
| 2012-12-31 | 78.92 | 0.00 | 62.36 |
| 2012-09-30 | 85.81 | 0.00 | 73.04 |
| 2012-06-30 | 78.94 | 0.00 | 70.18 |
| 2012-03-31 | 71.69 | 0.00 | 64.90 |
- 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.
Financial health checks
We assess NIC's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) NIC has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is NIC's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
NIC
shares you are expected to receive
$38
in your first year as a dividend.
Dividend Amount
- NIC's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
- NIC's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 5 Analyst Estimates (S&P Global) | See Below |
| United States of America IT Industry Average Dividend Yield | Market Cap Weighted Average of 33 Stocks | 1.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2020-12-31 | ||
| 2019-12-31 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-30 | 0.320 | 1.893 |
| 2018-08-01 | 0.320 | 2.261 |
| 2018-05-01 | 0.320 | 2.013 |
| 2018-02-22 | 0.320 | 2.288 |
| 2018-01-31 | 0.320 | 2.358 |
| 2017-11-01 | 0.320 | 1.908 |
| 2017-05-03 | 0.320 | 1.787 |
| 2017-05-02 | 0.320 | 1.519 |
| 2017-05-01 | 0.320 | 1.494 |
| 2016-11-03 | 0.970 | 4.274 |
| 2016-02-23 | 0.550 | 2.677 |
| 2016-02-04 | 0.550 | 3.146 |
| 2015-11-05 | 0.550 | 2.806 |
| 2014-10-28 | 0.500 | 2.823 |
| 2013-10-29 | 0.350 | 1.834 |
| 2012-11-08 | 0.250 | 1.393 |
| 2012-05-01 | 0.250 | 1.910 |
| 2012-04-30 | 0.250 | 2.200 |
| 2011-10-26 | 0.250 | 2.001 |
| 2010-12-06 | 0.250 | 2.191 |
| 2010-05-03 | 0.300 | 4.059 |
| 2010-02-04 | 0.300 | 3.988 |
| 2009-11-05 | 0.300 | 3.400 |
| 2009-08-07 | 0.300 | 3.587 |
| 2009-08-06 | 0.300 | 3.832 |
| 2009-05-05 | 0.300 | 4.476 |
| 2009-05-04 | 0.300 | 5.236 |
| 2009-03-23 | 0.300 | 5.719 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- 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.
Income/ dividend checks
We assess NIC's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can NIC afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) NIC has a total score of 3/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $2,687,621 |
| AGE | 58 |
| TENURE AS CEO | 11.1 years |
CEO Bio
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 Information Consortium USA Inc., a subsidiary of NIC Inc. since 1998. He served as President of NIC Inc. since May 2006 until February 2008. He served as the Chief Operating Officer of NIC Inc. since May 2002 until October 2006. He served as Executive Vice President of Portal Operations of NIC Inc.’s from January 1999 to April 2002. He served as the Vice President of Kansas Information Consortium Inc. from September 1995 to September 1996. Prior to joining NIC Inc., he served as an Associate General Counsel for the League of Kansas Municipalities from August 1992 to September 1995. He has been a Director of NIC Inc. since October 2006 and served as one of NIC Inc.’s Directors from May 1998 to February 1999. Mr. Herington serves as a Director of E-Filing.com Inc. He holds a B.S. degree from Wichita State University in Kansas and a JD degree from the University of Kansas School of Law.
CEO Compensation
- Harry's compensation has been consistent with company performance over the past year.
- Harry's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the NIC management team in years:
- The average tenure for the NIC management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Harry Herington
Chairman of the Board & CEO
$3M
58
11.1 yrs
Stephen Kovzan
Chief Financial Officer
$1M
49
11.6 yrs
William Van Asselt
General Counsel & Secretary
$463K
43
3.2 yrs
Jayne Holland
Chief Security Officer
$773K
54
12.3 yrs
Angela Davied
Vice President of Corporate Communications
8.7 yrs
Doug Rogers
Senior Vice President of Business Development
1.4 yrs
Ron Thornburgh
Vice President of Digital Government & Advocacy
$521K
55
2.4 yrs
Board of Directors Tenure
Average tenure and age of the NIC board of directors in years:
- The tenure for the NIC board of directors is about average.
Board of Directors
Art Burtscher
Lead Independent Director
$177K
67
11.1 yrs
Harry Herington
Chairman of the Board & CEO
$3M
58
10.8 yrs
Sandy Kemper
Independent Director
$164K
52
11.3 yrs
Bill Lyons
Independent Director
$162K
62
9.6 yrs
Pete Wilson
Director
$155K
84
19.7 yrs
Brad Henry
Director
$155K
55
7.4 yrs
Raji Arasu
Director
$155K
48
3.8 yrs
Jay Vijayan
Director
0.8 yrs
Tony Scott
Director
66
0.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess NIC's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) NIC has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Is NIC Inc. (NASDAQ:EGOV) A Smart Choice For Dividend Investors?
Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … (NASDAQ:EGOV) has been paying a dividend to shareholders. … 5 questions I ask before picking a dividend stock
Simply Wall St - – Full articleWhy NIC Inc. (NASDAQ:EGOV) Looks Like A Quality Company
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.28 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleWhat Does NIC Inc.'s (NASDAQ:EGOV) Share Price Indicate?
(NASDAQ:EGOV), which is in the it business, and is based in United States,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at NIC’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Simply Wall St - – Full articleWhy Fundamental Investors Might Love NIC Inc. (NASDAQ:EGOV)
Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … is a company with great financial health as well as a
Simply Wall St - – Full articleDoes NIC Inc.'s (NASDAQ:EGOV) 14% Earnings Growth Make It An Outperformer?
It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. … Below, I assess EGOV's latest performance announced on 31 December 2018 and evaluate these figures to its historical trend and industry movements. … EGOV's trailing twelve-month earnings (from 31 December 2018) of US$58m has.
Simply Wall St - – Full articleIs NIC Inc. (NASDAQ:EGOV) A Financially Sound Company?
(NASDAQ:EGOV), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … Does EGOV's growth rate justify its decision for financial flexibility over lower cost of capital. … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital
Simply Wall St - – Full articleNIC Inc. (NASDAQ:EGOV) Earns Among The Best Returns In Its Industry
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … The formula for calculating the return on capital employed is:
Simply Wall St - – Full articleIs NIC Inc. (NASDAQ:EGOV) Excessively Paying Its CEO?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Harry Herington's Compensation Compare With Similar Sized Companies. … We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2.3m.
Simply Wall St - – Full articleShould NIC Inc (NASDAQ:EGOV) Be Part Of Your Portfolio?
Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … Historically, NIC Inc (NASDAQ:EGOV) has paid a dividend to shareholders. … 5 checks you should do on a dividend stock
Simply Wall St - – Full articleBoasting A 29% Return On Equity, Is NIC Inc (NASDAQ:EGOV) A Top Quality Stock?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … How Do You Calculate Return On Equity … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleCompany Info
Description
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 company’s outsourced portal business enters into long-term contracts with state and local governments to design, build, and operate Internet-based and enterprise-wide portals on their behalf. Its portals consist of Internet-based applications that enable businesses and citizens to access government information online and secure transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. The company’s portal service offerings include motor vehicle driver history record retrieval; vehicle title, lien, and registration; motor vehicle inspections; temporary vehicle tags; driver’s license renewal; hunting and fishing licenses; health professional license services; professional license renewal; business registrations and renewals; secretary of state business searches; Uniform Commercial Code (UCC) searches and filings; limited criminal history searches; court services; vital records; income and property tax payments; and payment processing products and services. Its software & services business provides software development, payment processing, and other digital government services to state and local governments, as well as federal agencies. In addition, the company develops and manages the pre-employment screening program for motor carriers using transaction-based business model. Further, it offers consulting, application development, and portal management services to governments. NIC Inc. was founded in 1991 and is based in Olathe, Kansas.
Details
| Name: | NIC Inc. |
| EGOV | |
| Exchange: | NasdaqGS |
| Founded: | 1991 |
| $1,129,427,892 | |
| 66,632,914 | |
| Website: | http://www.egov.com |
| Address: |
NIC Inc. 25501 West Valley Parkway, Suite 300, Olathe, Kansas, 66061, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | EGOV | Common Stock | Nasdaq Global Select | US | USD | 15. Jul 1999 | |
| DB | NAI | Common Stock | Deutsche Boerse AG | DE | EUR | 15. Jul 1999 | |
| LSE | 0K48 | Common Stock | London Stock Exchange | GB | USD | 15. Jul 1999 |
Number of employees
Current staff
Industry
| Data Processing and Outsourced Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/20 23:41 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/02/01 |
| Last earnings filing: | 2019/02/21 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
