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NICE (IL:NICE)
:NICE
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Nice
(OTC:NICE)
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Rating:77Outperform
Price Target:
57,204.00
▲(13.21% Upside)
Nice's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust growth and strategic initiatives. However, technical indicators suggest caution due to bearish trends and potential overbought conditions. The valuation is reasonable, but the lack of a dividend yield may deter some investors.
Nice (NICE) vs. iShares MSCI Israel ETF (EIS)
Market Cap
31.20B
Dividend YieldN/A
Average Volume (3M)133.54K
Price to Earnings (P/E)16.6
Beta (1Y)0.07
Revenue Growth8.81%
EPS Growth32.96%
CountryIL
Employees8,726
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1017.90
Shares Outstanding61,743,477
10 Day Avg. Volume140,522
30 Day Avg. Volume133,536
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
57,107.71Price Target Upside13.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.72
Positive
| 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
Positive
50530.00
Price Trends
49665.60
Positive
53891.30
Negative
56419.80
Negative
Market Momentum
142.83
Negative
60.57
Neutral
80.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NICE, the sentiment is Positive. The current price of 50530 is above the 20-day moving average (MA) of 47769.00, above the 50-day MA of 49665.60, and below the 200-day MA of 56419.80, indicating a neutral trend. The MACD of 142.83 indicates Negative momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:NICE.
Nice Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
IL:NICE
Nice
50,530.00
-13,760.00
-21.40%
IL:ONE
One Technologi
7,567.00
2,655.72
54.07%
IL:MTRX
Matrix
11,180.00
4,213.71
60.49%
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.