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NICE (IL:NICE)
:NICE
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Nice
(OTC:NICE)
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Rating:71Outperform
Price Target:
48,123.00
▲(9.84% Upside)
Nice's overall stock score is driven by strong financial performance and positive earnings call highlights, including growth in AI and international markets. However, bearish technical indicators and challenges in cloud margins and LiveVox performance weigh on the score. The stock's reasonable valuation provides some support, but the lack of a dividend yield is a downside for income investors.
Nice (NICE) vs. iShares MSCI Israel ETF (EIS)
Market Cap
25.76B
Dividend YieldN/A
Average Volume (3M)155.27K
Price to Earnings (P/E)13.1
Beta (1Y)-0.03
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. Volume162,030
30 Day Avg. Volume155,267
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)3.01
Price to Sales (P/S)3.95
P/FCF Ratio14.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 strong financial health with consistent revenue growth, high profitability, and a stable balance sheet. The company effectively manages its debt and equity, ensuring financial stability. However, the recent decline in free cash flow growth could pose a risk if not addressed.Income Statement
Nice has demonstrated consistent revenue growth with a TTM (Trailing-Twelve-Months) increase of 2.25% and a solid gross profit margin of 66.90%. The net profit margin has improved to 16.77%, indicating strong profitability. EBIT and EBITDA margins are healthy at 22.75% and 29.84%, respectively, reflecting efficient operations. Overall, the income statement shows robust growth and profitability, with a positive trajectory.85
Very Positive
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.15, indicating prudent financial leverage. Return on equity is strong at 13.19%, showcasing effective use of shareholder funds. The equity ratio stands at 70.27%, reflecting a solid equity base. The balance sheet is stable, with low leverage and strong returns, although there is room for improvement in asset utilization.78
Positive
Cash Flow
Operating cash flow is robust, but free cash flow has decreased by 14.21% in the TTM, which is a concern. The operating cash flow to net income ratio is 0.56, and the free cash flow to net income ratio is 0.89, indicating good cash conversion. While cash flow generation is strong, the decline in free cash flow growth needs attention.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 | 440.48M | 436.63M |
| 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
Negative
43810.00
Price Trends
45887.60
Negative
50157.60
Negative
53863.00
Negative
Market Momentum
-1383.14
Positive
26.73
Positive
4.99
Positive
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 43810 is above the 20-day moving average (MA) of 43319.50, below the 50-day MA of 45887.60, and below the 200-day MA of 53863.00, indicating a bearish trend. The MACD of -1383.14 indicates Positive momentum. The RSI at 26.73 is Positive, neither overbought nor oversold. The STOCH value of 4.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:NICE.
Nice Peers Comparison
UnderperformOutperform
Sector (61)
IL:NICE
Nice
40,390.00
-32,350.00
-44.47%
IL:ONE
One Technologi
8,817.00
3,140.46
55.32%
IL:MTRX
Matrix
12,500.00
5,241.10
72.20%
Nice Corporate Events
NICE Ltd. Reports Strong Q2 2025 Results
Aug 15, 2025
NICE Ltd., a leading company in the AI-powered customer experience market, reported its financial results for the second quarter of 2025, showcasing significant growth in its cloud revenue and earnings per share. The company, which operates in over 150 countries, provides AI-driven platforms that enhance organizational performance through intelligent automation.
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.