Nice (NICE) AI Stock Analysis

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Nice

(OTC:NICE)

Rating:70Outperform

Price Target:

50,336.00

▲(6.10% Upside)

Nice's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting growth in AI and international markets. However, technical analysis indicates bearish momentum, and valuation is moderate with no dividend yield. Addressing free cash flow decline and cloud margin pressures will be crucial for future performance.

Nice (NICE) vs. iShares MSCI Israel ETF (EIS)

Market Cap

$30.01B

Dividend YieldN/A

Average Volume (3M)190.25K

Price to Earnings (P/E)15.7

Beta (1Y)0.10

Revenue Growth8.81%

EPS Growth32.96%

CountryIL

Employees8,726

SectorTechnology

Sector Strength85

IndustrySoftware - Application

Share Statistics

EPS (TTM)1017.90

Shares Outstanding63,249,844

10 Day Avg. Volume123,671

30 Day Avg. Volume190,255

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.08

Enterprise Value/Revenue11.43

Enterprise Value/Gross Profit17.05

Enterprise Value/Ebitda38.02

Forecast

1Y Price Target

$50,044.23

Price Target Upside5.49% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Nice Business Overview & Revenue Model

Company DescriptionNice Ltd., commonly referred to as NICE, is a global leader in cloud and on-premises enterprise software solutions. The company operates primarily in the sectors of customer experience, financial crime and compliance, and public safety. NICE offers a wide range of products and services including customer interaction analytics, advanced call recording, robotic process automation, financial crime risk management, and public safety solutions. These offerings are designed to help organizations enhance customer satisfaction, ensure compliance, and improve operational efficiency.

How the Company Makes MoneyNICE makes money through a diversified revenue model that includes software licensing, subscription services, and professional services. A significant portion of its revenue is derived from software-as-a-service (SaaS) subscriptions, where customers pay recurring fees for access to NICE's cloud-based solutions. The company also generates income from perpetual software licenses, where clients make a one-time purchase for on-premises solutions. In addition to these, NICE provides professional services such as consulting, implementation, and training, which contribute to its earnings. Strategic partnerships with technology providers and system integrators also play a crucial role in expanding its customer base and driving revenue growth.

Nice Earnings Call Summary

Earnings Call Date:Aug 14, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 13, 2025

Earnings Call Sentiment Positive

The call reflects a generally strong performance with revenue and earnings exceeding expectations, driven by significant growth in AI and international markets. However, the underperformance of LiveVox and cloud margin pressures present challenges. Strategic partnerships and international expansion provide optimism for future growth.

Q2-2025 Updates

Positive Updates

Strong Revenue and Earnings Performance

Total revenue for Q2 2025 reached $727 million, exceeding guidance with a 9% year-over-year increase. Earnings per share also came in at the high end of the guidance range.

AI and Self-Service ARR Growth

AI and self-service ARR grew by 42% year-over-year to $238 million, demonstrating strong momentum in AI solutions like Autopilot, Copilot, and self-service offerings.

Significant International Wins

Secured large deals internationally, including a $100 million contract with the UK's Department of Work and Pensions and a 7-figure ACV win with German health insurer AOK PLUS.

Strategic Partnerships

Expanded alliances with AWS, Snowflake, and Salesforce, and renewed partnership with RingCentral, enhancing the integration and market reach of NICE's solutions.

Negative Updates

LiveVox Performance Issues

The LiveVox business underperformed, creating pressure on cloud growth expectations, attributed to larger-than-expected churn and some customers building in-house solutions.

Cloud Gross Margin Decline

Cloud gross margin fell below 70% due to increased cloud investments, impacting overall profitability.

Company Guidance

The guidance provided in the call for NICE's third quarter and full year 2025 highlights continued confidence in achieving strong financial performance. For Q3 2025, NICE expects total revenue to be in the range of $722 million to $732 million, implying a 5% year-over-year growth at the midpoint, with fully diluted earnings per share (EPS) projected between $3.12 and $3.22, marking a 10% increase. For the full year, the company reaffirms its total revenue guidance of $2.918 billion to $2.938 billion, representing a 7% increase at the midpoint, while maintaining an expectation of 12% year-over-year cloud revenue growth. Furthermore, NICE anticipates a 50 basis point increase in its non-GAAP operating margin year-over-year, with non-GAAP EPS guidance raised to $12.33 to $12.53, reflecting a 12% increase at the midpoint. The guidance excludes potential impacts from the planned Cognigy acquisition, which is expected to close in Q4 2025.

Nice Financial Statement Overview

Summary

Nice exhibits robust financial performance with strong revenue growth, high profitability margins, and a healthy balance sheet with low leverage. Effective cash flow management further supports its solid financial standing, positioning it well for future growth.

Income Statement

Very Positive

Nice has shown strong revenue growth with a TTM revenue of $2.78 billion, up from $2.37 billion in 2023, marking a 16.77% increase. The gross profit margin stands at 66.88%, indicating healthy profitability. The net profit margin has improved to 16.76%, a significant increase compared to previous years. The company also shows robust EBIT and EBITDA margins of 20.62% and 29.84%, respectively, suggesting strong operational efficiency.

Balance Sheet

Very Positive

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.15, indicating low leverage. The return on equity is 13.30%, showcasing effective use of equity to generate profits. The equity ratio is a healthy 66.89%, suggesting a strong financial position with substantial equity backing.

Cash Flow

Very Positive

Cash flow metrics demonstrate positive trends, with a free cash flow growth rate of 6.60% from the previous year. The operating cash flow to net income ratio is 1.85, and the free cash flow to net income ratio is 1.65, both indicating strong cash generation relative to net income, which enhances financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.84B	2.74B	2.38B	2.18B	1.92B	1.65B
Gross Profit	1.90B	1.83B	1.61B	1.50B	1.30B	1.09B
EBITDA	853.27M	810.00M	628.76M	525.59M	448.00M	424.07M
Net Income	537.12M	442.59M	338.30M	265.94M	199.22M	196.35M
Balance Sheet
Total Assets	5.31B	5.30B	5.12B	4.86B	4.66B	4.23B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.62B	1.41B	1.57B	1.42B	1.46B
Total Debt	539.03M	563.60M	782.97M	777.46M	878.52M	795.89M
Total Liabilities	1.58B	1.69B	1.76B	1.80B	1.83B	1.64B
Stockholders Equity	3.73B	3.59B	3.34B	3.04B	2.83B	2.56B
Cash Flow
Free Cash Flow	660.11M	732.87M	477.25M	397.82M	394.61M	417.02M
Operating Cash Flow	754.88M	832.64M	561.43M	479.71M	461.82M	480.31M
Investing Cash Flow	-499.25M	-397.40M	-293.58M	-152.35M	-261.50M	-465.07M
Financing Cash Flow	-463.36M	-456.60M	-290.27M	-164.50M	-261.82M	196.84M

Nice Technical Analysis

Technical Analysis Sentiment

Negative

Last Price47440.00

Price Trends

50DMA

52555.40

Negative

100DMA

55250.10

Negative

200DMA

57961.35

Negative

Market Momentum

MACD

-1785.95

Negative

RSI

39.25

Neutral

STOCH

51.16

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NICE, the sentiment is Negative. The current price of 47440 is below the 20-day moving average (MA) of 48866.00, below the 50-day MA of 52555.40, and below the 200-day MA of 57961.35, indicating a bearish trend. The MACD of -1785.95 indicates Negative momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 51.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:NICE.

Nice Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTRX	73 Outperform	7.48B	26.42		2.80%	6.43%	14.81%
NICE	70 Outperform	$30.01B	15.66	14.95%	―	8.81%	32.96%
ONE	69 Neutral	5.84B	23.15		2.85%	11.47%	26.50%
Sector *	61 Neutral	$35.48B	7.63	-10.11%	1.88%	8.73%	-9.23%

* Technology Sector Average

Performance Comparison

IL:NICE

Nice

47,440.00

-15,400.00

-24.51%

IL:ONE

One Technologi

8,147.00

3,597.05

79.06%

IL:MTRX

Matrix

11,750.00

4,901.19

71.56%

Nice Corporate Events

NICE to Announce Q4 2024 Financial Results and Host Teleconference

Feb 13, 2025

NICE announced it will report its fourth quarter 2024 financial results on February 20, 2025, with a teleconference scheduled for later that day to discuss the findings. This announcement underscores NICE’s commitment to transparency and may impact investor perceptions and market positioning, as stakeholders gain insights into the company’s financial health and strategic direction.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025