NasdaqGS:EGOV

Stock Analysis Report

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

Fundamentals

Flawless balance sheet with acceptable 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


Market Performance


7 Day Return

3.5%

EGOV

-1.5%

US IT

0.5%

US Market


1 Year Return

48.0%

EGOV

21.3%

US IT

6.8%

US Market

Return vs Industry: EGOV exceeded the US IT industry which returned 21.3% over the past year.

Return vs Market: EGOV exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

EGOVIndustryMarket
7 Day3.5%-1.5%0.5%
30 Day3.7%-0.8%-0.8%
90 Day21.2%-4.5%-0.9%
1 Year50.9%48.0%22.5%21.3%9.2%6.8%
3 Year-1.5%-9.0%94.0%86.1%45.6%36.2%
5 Year46.3%27.5%149.1%126.3%63.2%45.4%

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

Valuation

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

27.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EGOV ($21.07) is trading above our estimate of fair value ($13.27)

Significantly Below Fair Value: EGOV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EGOV is good value based on its PE Ratio (27.5x) compared to the IT industry average (35.5x).

PE vs Market: EGOV is poor value based on its PE Ratio (27.5x) compared to the US market (17.7x).


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 (6.2x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is NIC forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGOV's forecast earnings growth (11.1% per year) is above the savings rate (2.7%).

Earnings vs Market: EGOV's earnings (11.1% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: EGOV's revenue (7.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: EGOV's revenue (7.3% 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?

9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EGOV's earnings have grown by 9.7% 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 (-9.9%) over the past year, making it difficult to compare to the IT industry average (9.8%).


Return on Equity

High ROE: EGOV's Return on Equity (22.5%) is considered high.


Return on Assets

ROA vs Industry: EGOV has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: EGOV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is NIC's financial position?


Financial Position Analysis

Short Term Liabilities: EGOV's short term assets ($312.3M) exceeds its short term liabilities ($115.9M)

Long Term Liabilities: EGOV's short term assets (312.3M) exceeds its long term liabilities (19.4M)


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?

1.52%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EGOV's dividend (1.52%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: EGOV's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (41.7%), 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?

6.5yrs

Average management tenure


CEO

Harry Herington (59yo)

11.7yrs

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 ($USD2.34M) is about average for companies of similar size in the US market ($USD4.00M).

Compensation vs Earnings: Harry's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.5yrs

Average Tenure

55yo

Average Age

Experienced Management: EGOV's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

10.2yrs

Average Tenure

59yo

Average Age

Experienced Board: EGOV's board of directors are seasoned and experienced ( 10.2 years average tenure).


Insider Trading

Insider Buying: EGOV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$209,58530 Aug 19
William Lyons
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$20.96

Ownership Breakdown


Management Team

  • Harry Herington (59yo)

    Chairman of the Board & CEO

    • Tenure: 11.7yrs
    • Compensation: US$2.34m
  • Stephen Kovzan (50yo)

    Chief Financial Officer

    • Tenure: 12.2yrs
    • Compensation: US$1.02m
  • Ron Thornburgh (56yo)

    Vice President of Digital Government & Advocacy

    • Tenure: 3yrs
    • Compensation: US$521.17k
  • Brian Anderson

    Chief Technology Officer

    • Tenure: 0.5yrs
  • Angela Davied

    Vice President of Corporate Communications

    • Tenure: 9.3yrs
  • Jayne Holland (55yo)

    Chief Security Officer

    • Tenure: 12.8yrs
    • 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: 2yrs
  • 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: 11.7yrs
    • Compensation: US$2.34m
  • Sandy Kemper (53yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$164.41k
  • Bill Lyons (63yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$161.91k
  • Art Burtscher (68yo)

    Lead Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$176.91k
  • Tony Scott (67yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$65.88k
  • Brad Henry (56yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$155.66k
  • Raji Arasu (49yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$155.66k
  • Jay Vijayan (46yo)

    Director

    • Tenure: 1.3yrs
    • 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$1.411b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EGOVNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1999
NAIDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1999
0K48LSE (London Stock Exchange)YesCommon StockGBUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:40
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.