NasdaqGS:EGOV

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


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

1.0%

EGOV

1.3%

US IT

0.09%

US Market


1 Year Return

2.1%

EGOV

22.5%

US IT

12.6%

US Market

Return vs Industry: EGOV underperformed the US IT industry which returned 23.3% over the past year.

Return vs Market: EGOV underperformed the US Market which returned 13.6% over the past year.


Shareholder returns

EGOVIndustryMarket
7 Day1.0%1.3%0.09%
30 Day-6.7%-2.6%-1.6%
90 Day-8.8%7.9%7.9%
1 Year3.7%2.1%23.8%22.5%15.2%12.6%
3 Year29.0%21.9%93.7%86.1%38.9%29.6%
5 Year33.1%17.7%164.7%143.0%87.6%66.5%

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

Valuation

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

15.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EGOV ($20.73) is trading below our estimate of fair value ($24.44)

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


Price To Earnings Ratio

PE vs Industry: EGOV is good value based on its PE Ratio (28x) compared to the US IT industry average (32.1x).

PE vs Market: EGOV is poor value based on its PE Ratio (28x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: EGOV is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: EGOV is overvalued based on its PB Ratio (5.4x) compared to the US IT industry average (3.7x).


Next Steps

Future Growth

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

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EGOV's forecast earnings growth (16.7% per year) is above the savings rate (2.2%).

Earnings vs Market: EGOV's earnings (16.7% per year) are forecast to grow slower than the US market (23.2% per year).

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

Revenue vs Market: EGOV's revenue (8.6% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: EGOV's revenue (8.6% 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?

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EGOV has high quality earnings.

Growing Profit Margin: EGOV's current net profit margins (13.7%) are lower than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: EGOV's earnings have grown by 3.5% 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 (-3%) over the past year, making it difficult to compare to the IT industry average (7.5%).


Return on Equity

High ROE: EGOV's Return on Equity (19.4%) is considered low.


Next Steps

Financial Health

How is NIC's financial position?


Financial Position Analysis

Short Term Liabilities: EGOV's short term assets ($340.3M) exceed its short term liabilities ($116.4M).

Long Term Liabilities: EGOV's short term assets ($340.3M) exceed its long term liabilities ($16.2M).


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


Next Steps

Dividend

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

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EGOV's dividend (1.74%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: EGOV's dividend (1.74%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 (45.9%), 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

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

3.9yrs

Average management tenure


CEO

Harry Herington (60 yo)

12.58yrs

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 ($USD2.42M) is below average for companies of similar size in the US market ($USD4.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Harry Herington
Chairman of the Board & CEO12.58yrsUS$2.42m1.32%
$ 18.3m
Stephen Kovzan
Chief Financial Officer13.08yrsUS$1.04m0.26%
$ 3.6m
William Van Asselt
General Counsel & Secretary4.67yrsUS$507.01k0.043%
$ 598.4k
Jayne Holland
Chief Security Officer13.75yrsUS$948.55k0.18%
$ 2.5m
Douglas Rogers
Senior Vice President of Business Development2.92yrsUS$578.44k0.021%
$ 288.6k
Brian Anderson
Chief Technology Officer1.42yrsno data0.015%
$ 209.7k
Angie Davids
Senior Vice President of Marketing & Communications1yrno datano data
Ron Thornburgh
Vice President of Digital Government & Advocacy3.92yrsUS$521.17kno data
Elizabeth Thomas
Vice President of Finance Operationsno datano data0.037%
$ 516.4k
Kara Cowie
Director of Corporate Communications0.67yrno datano data

3.9yrs

Average Tenure

53.5yo

Average Age

Experienced Management: EGOV's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Harry Herington
Chairman of the Board & CEO12.58yrsUS$2.42m1.32%
$ 18.3m
Peter Wilson
Independent Director21.17yrsUS$155.69k0.14%
$ 1.9m
Alexander Kemper
Independent Director12.83yrsUS$164.44k0.095%
$ 1.3m
William Lyons
Independent Director11.08yrsUS$161.94k0.098%
$ 1.4m
Art Burtscher
Lead Independent Director12.58yrsUS$176.94k0.36%
$ 5.0m
Anthony Scott
Independent Director2.25yrsUS$157.80k0.017%
$ 242.6k
Charles Henry
Independent Director8.92yrsUS$155.69k0.070%
$ 974.9k
Venmal Arasu
Independent Director5.33yrsUS$158.19k0.043%
$ 600.3k
Jayaprakash Vijayan
Independent Director2.25yrsUS$159.05k0.017%
$ 242.6k
Sylvester James
Director0.083yrno data0.0017%
$ 23.9k

10.0yrs

Average Tenure

60yo

Average Age

Experienced Board: EGOV's board of directors are seasoned and experienced ( 10 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: 1991
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$1.389b
  • Shares outstanding: 67.02m
  • 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. Its por ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 07:00
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.