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NICE Ltd (IL:NICE)
:NICE
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Nice
(OTC:NICE)
Rating:80Outperform
Price Target:
67,448.00
▲(9.32%Upside)
Nice (NICE) vs. iShares MSCI Israel ETF (EIS)
Market Cap
$39.09B
Dividend YieldN/A
Average Volume (3M)121.38K
Price to Earnings (P/E)23.4
Beta (1Y)0.37
Revenue Growth11.65%
EPS Growth25.43%
CountryIL
Employees8,726
SectorTechnology
Sector Strength84
IndustrySoftware - Application
Share Statistics
EPS (TTM)1020.50
Shares Outstanding63,249,844
10 Day Avg. Volume167,094
30 Day Avg. Volume121,378
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)3.01
Price to Sales (P/S)0.00
P/FCF Ratio14.75
Enterprise Value/Market Cap0.26
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit5.47
Enterprise Value/Ebitda3.54
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Nice Business Overview & Revenue Model
Company DescriptionNICE Ltd. is a globally recognized enterprise software company that specializes in providing solutions for customer engagement, financial crime and compliance, and enterprise software. The company operates in sectors such as customer experience, risk management, and compliance, offering a range of products and services including cloud-based and on-premises solutions for contact centers, analytics, robotic process automation, and more. NICE's innovative technologies help organizations improve customer service, enhance compliance, and optimize business performance.
How the Company Makes MoneyNICE Ltd. generates revenue primarily through the sale of its software solutions and services. The company offers both perpetual licenses and subscription-based models, with a growing emphasis on cloud-based solutions that provide recurring revenue. Key revenue streams include software licenses, subscription fees, maintenance and support services, and professional services such as consulting and implementation. Additionally, NICE partners with various technology and service providers to expand its market reach and enhance its product offerings, contributing to its overall revenue growth.
Nice Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 3.23%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with strong growth in cloud revenue and strategic partnerships. Despite challenges in on-premises revenue and cloud gross margin, the company's operational efficiency and future potential through AI and strategic partnerships suggest a strong position moving forward.Q1-2025 Updates
Positive Updates
Strong Revenue and Cloud Growth
Total revenue reached $700 million, with cloud revenue increasing by 12% year over year to $527 million, now representing 75% of total revenue.
Record Operating Margin and Earnings Per Share
Operating margin expanded by 20 basis points to 30.5%, and earnings per share increased by 11% to $2.87.
Significant Government Contract
Secured a landmark deal with a major European government agency, representing a total contract value of over $100 million.
Strategic Partnerships and Innovation
Formed new partnerships with ServiceNow and AWS, aiming to improve customer experience and AI integration.
Share Repurchase and Financial Position
Executed the largest quarterly share buyback in company history, totaling $252 million, and announced a new $500 million buyback program.
Introduction of New Cloud Metrics
Introduced CapEx-AI and self-service cloud revenue metrics, with annual recurring revenue exceeding $200 million, up 39% year over year.
Negative Updates
Decline in On-Premises Revenue
Services revenue declined by 6% and product revenue by 20% as the company shifts focus to cloud solutions.
Cloud Gross Margin Pressure
Cloud gross margin slightly declined due to investments in partner capacity and international infrastructure expansion.
Delayed Revenue Contribution from Major Deals
Revenue from a significant European government deal is not expected until early 2026.
Company Guidance
During the first quarter of 2025, NICE reported a total revenue of $700 million, with a 12% year-over-year growth in cloud revenue, reaching $527 million. The company achieved an operating margin of 30.5%, an increase of 20 basis points, and earnings per share of $2.87, marking an 11% improvement. Operating cash flow rose by 12% to $285 million, driven by strong profitability. NICE executed its largest ever share repurchase in Q1, reflecting confidence in its long-term strategy. For Q2 2025, the company anticipates revenue between $709 million to $719 million, with EPS projected between $2.93 to $3.03. For the full year, revenue is expected to range from $2.918 billion to $2.938 billion, with EPS guidance raised to $12.28 to $12.48. The company continues to prioritize cloud growth and strategic partnerships, with cloud revenue now comprising 75% of total revenue, and introduced new cloud metrics, including an NRR of 111%.Nice Financial Statement Overview
Summary
Nice exhibits a strong financial performance with robust revenue growth, efficient cost management, and solid profitability metrics. The balance sheet reflects financial stability, although the increase in liabilities requires monitoring. Strong cash flow generation underpins the company's ability to invest in growth opportunities.Income Statement
Nice has shown a strong revenue growth trajectory with a consistent increase in total revenue over the years, indicating robust demand. The gross profit margin has remained healthy, reflecting effective cost management. The net profit margin has improved significantly, demonstrating increased profitability. The EBIT and EBITDA margins are strong, indicating operational efficiency.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a favorable debt-to-equity ratio, showcasing prudent financial management. The equity ratio is strong, indicating a stable financial structure. Return on equity has improved, reflecting better profitability from shareholders' investments. However, the total liabilities have increased slightly, which should be monitored.78
Positive
Cash Flow
Nice demonstrates strong cash flow generation with a positive trend in operating cash flow. Free cash flow has shown significant growth, and the conversion of cash flow to net income is efficient, indicating good cash management. This provides the company with financial flexibility for future investments.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.28B | 2.74B | 2.38B | 2.18B | 1.92B | 1.65B | Gross Profit |
| 1.55B | 1.83B | 1.61B | 1.50B | 1.30B | 1.09B | EBIT |
| 201.41M | 545.95M | 435.23M | -335.17M | 263.91M | 242.05M | EBITDA |
| 551.04M | 810.00M | 628.76M | 525.59M | 448.00M | 424.07M | Net Income Common Stockholders |
| 306.73M | 442.59M | 338.30M | 265.94M | 199.22M | 196.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 481.64M | 1.62B | 1.41B | 1.57B | 1.42B | 1.46B | Total Assets |
| 3.72B | 5.30B | 5.12B | 4.86B | 4.66B | 4.23B | Total Debt |
| 588.14M | 563.60M | 782.97M | 777.46M | 878.52M | 795.89M | Net Debt |
| 299.03M | 81.89M | 271.17M | 247.86M | 499.86M | 353.63M | Total Liabilities |
| 1.41B | 1.69B | 1.76B | 1.80B | 1.83B | 1.64B | Stockholders Equity |
| 2.29B | 3.59B | 3.34B | 3.04B | 2.83B | 2.56B |
| Cash Flow | Free Cash Flow | ||||
| 441.79M | 732.87M | 477.25M | 397.82M | 394.61M | 417.02M | Operating Cash Flow |
| 531.30M | 832.64M | 561.43M | 479.71M | 461.82M | 480.31M | Investing Cash Flow |
| -138.84M | -397.40M | -293.58M | -152.35M | -261.50M | -465.07M | Financing Cash Flow |
| -177.57M | -456.60M | -290.27M | -164.50M | -261.82M | 196.84M |
Nice Technical Analysis
Positive
61700.00
Price Trends
57555.60
Positive
57568.40
Positive
61208.55
Positive
Market Momentum
1065.91
Negative
61.50
Neutral
85.84
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 61700 is above the 20-day moving average (MA) of 59016.00, above the 50-day MA of 57555.60, and above the 200-day MA of 61208.55, indicating a bullish trend. The MACD of 1065.91 indicates Negative momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of 85.84 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 (62)
Financial Indicators
Performance Comparison
IL:NICE
Nice
61,700.00
-2,590.00
-4.03%
IL:ONE
One Technologi
7,970.00
3,313.22
71.15%
IL:MTRX
Matrix
10,280.00
3,697.52
56.17%
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.