Nice (NICE) AI Stock Analysis

• Market Cap: 22.47B
• Dividend Yield: N/A
• Average Volume (3M): 211.77K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.19
• Revenue Growth: 4.34%
• EPS Growth: 27.35%
• Country: IL
• Employees: 8,726
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1025.80
• Shares Outstanding: 61,743,477
• 10 Day Avg. Volume: 352,262
• 30 Day Avg. Volume: 211,770
• PEG Ratio: 0.67
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 3.95
• P/FCF Ratio: 14.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 40,393.00 ▲(9.32% Upside)

The score is driven primarily by strong financial performance—high margins, solid cash conversion, and low leverage. Valuation is supportive with a low P/E (11.604), but the technical picture is a key offset as the stock remains below major longer-term moving averages, limiting the overall score despite neutral-to-mixed momentum indicators.

Positive Factors

High Profitability and Margins

Sustained high gross and operating margins signal durable pricing power and efficient operations across product and services lines. These margins support reinvestment in R&D and product development, enabling competitive differentiation and resilience through economic cycles.

Strong Cash Generation

Consistent free cash flow growth and healthy cash conversion provide flexibility to fund organic growth, M&A, and debt reduction without relying on external financing. Reliable cash generation underpins long-term investment in product innovation and customer success initiatives.

Low Leverage and Solid Balance Sheet

A conservative capital structure with very low leverage affords strategic optionality—ability to pursue acquisitions, absorb shocks, or return capital. High equity funding and solid ROE indicate stable financing and effective capital deployment over the medium term.

Negative Factors

Modest Revenue Growth

Very low recent top-line growth despite high profitability suggests limited incremental market penetration or product uptake. Persistent slow revenue growth can constrain scalability, reduce operating leverage benefits, and limit the company’s ability to expand market share over the medium term.

Hybrid Revenue Mix Limits Recurring Predictability

A material share of on-premise licenses and professional services reduces recurring ARR visibility versus pure SaaS peers. Professional services create lumpy revenue and longer sales cycles, making durable revenue forecasting and margin expansion more challenging over time.

Reliance on Partnerships for Market Reach

Heavy dependence on external partners and integrators aids distribution but can dilute control of go-to-market, slow direct customer relationships, and create execution or concentration risks. Partner reliance may limit pricing power and margin capture over the long run.

Nice Business Overview & Revenue Model

Company Description

NICE Ltd., together with its subsidiaries, provides cloud platforms for AI-driven digital business solutions worldwide. It offers CXone, a cloud native open platform that supports contact centers ranging from small single sites to distributed remote agents and enterprises; Enlighten, an AI engine for CX that discovers automation opportunities for self-service; digital-entry points solutions that enable organizations to address consumers' needs; and journey orchestration solutions that empower organizations to connect and route customers to deal with the customer's request, and connecting them using real time AI-based routing. The company also provides smart self service solutions that empower organizations to build intelligent automated conversations based on data; and prepared agent solutions and tools enable contact center agents to guide and alert them in real time so they can provide resolutions; complete performance solutions that help organizations to record structured and unstructured customer interaction and transaction data; and NICE Evidencentral, an digital evidence management platform for public safety emergency communications, law enforcement, and criminal justice helps agencies. In addition, it offers X-Sight, is an open and flexible AI-cloud platform for financial crime and compliance; Xceed, a cloud platform for comprehensive AML and fraud prevention for small and mid-sized organizations; data intelligence solutions that enable organizations to turn raw data into comprehensive actionable intelligence to prevent and detect financial crimes; AI and analytics technologies to detect and prevent financial crimes in real-time; money laundering and fraud prevention solutions that help organizations adhere to capital markets compliance and anti-money laundering compliance regulations; intelligent investigations solutions; and self-service solutions that provide organizations with customization and self-development capabilities. The company was formerly known as NICE-Systems Ltd. and changed its name to NICE Ltd. in June 2016. NICE Ltd. was founded in 1986 and is based in Ra'anana, Israel.

How the Company Makes Money

NICE generates revenue through a combination of software licensing, subscription services, and professional services. The company offers both on-premise and cloud-based solutions, with a growing emphasis on SaaS (Software as a Service) offerings that provide recurring revenue streams. Key revenue streams include sales of software licenses, monthly or annual subscription fees for cloud services, and consulting and implementation services that help clients adopt and integrate NICE’s solutions. Additionally, NICE benefits from strategic partnerships with technology providers and system integrators, which enhance its market reach and contribute to its revenue through collaborative projects and joint solutions.

Nice Financial Statement Overview

Summary

Nice exhibits strong financial health with consistent revenue growth, high profitability, and a solid balance sheet. The company effectively manages its leverage and generates substantial cash flows, positioning it well for future growth and stability in the software application industry.

Income Statement

Nice has demonstrated strong revenue growth with a TTM increase of 1.48%, building on consistent annual growth. The company maintains robust profitability with a gross profit margin of 67% and a net profit margin of 18.92% in the TTM. EBIT and EBITDA margins are also healthy at 23.37% and 30.06%, respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.14, indicating low leverage. Return on equity is strong at 14.93%, showcasing effective use of equity to generate profits. The equity ratio stands at 74.95%, highlighting a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow metrics are positive, with a free cash flow growth rate of 7.80% in the TTM, indicating strong cash generation. The operating cash flow to net income ratio is 1.40, and the free cash flow to net income ratio is 0.87, reflecting efficient cash conversion and strong liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.88B	2.74B	2.38B	2.18B	1.92B	1.65B
Gross Profit	1.93B	1.83B	1.61B	1.50B	1.30B	1.09B
EBITDA	877.29M	810.00M	628.76M	525.59M	440.48M	436.63M
Net Income	561.06M	442.59M	338.30M	265.94M	199.22M	196.35M
Balance Sheet
Total Assets	5.15B	5.30B	5.12B	4.86B	4.66B	4.23B
Cash, Cash Equivalents and Short-Term Investments	455.89M	1.62B	1.41B	1.57B	1.42B	1.46B
Total Debt	86.85M	563.60M	782.97M	777.46M	878.52M	795.89M
Total Liabilities	1.29B	1.69B	1.76B	1.80B	1.83B	1.64B
Stockholders Equity	3.86B	3.59B	3.34B	3.04B	2.83B	2.56B
Cash Flow
Free Cash Flow	711.62M	732.87M	477.25M	397.82M	394.61M	417.02M
Operating Cash Flow	786.41M	832.64M	561.43M	479.71M	461.82M	480.31M
Investing Cash Flow	-153.69M	-397.40M	-293.58M	-152.35M	-261.50M	-465.07M
Financing Cash Flow	-877.48M	-456.60M	-290.27M	-164.50M	-261.82M	196.84M

Nice Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36950.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NICE, the sentiment is Neutral. The current price of 36950 is above the 20-day moving average (MA) of 36048.50, above the 50-day MA of 36671.00, and below the 200-day MA of 49011.90, indicating a neutral trend. The MACD of 101.39 indicates Negative momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 55.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:NICE.

Nice Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONE	76 Outperform	7.01B	25.61	―	2.55%	14.11%	25.79%
NICE	72 Outperform	22.47B	11.73	15.11%	―	4.34%	27.35%
MTRX	66 Neutral	9.37B	31.61	―	2.41%	8.82%	14.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%