Nice (NICE) AI Stock Analysis

• Market Cap: ₪22.30B
• Dividend Yield: N/A
• Average Volume (3M): 211.77K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.38
• Revenue Growth: 4.34%
• EPS Growth: 27.35%
• Country: IL
• Employees: 8,726
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1013.60
• Shares Outstanding: 60,427,563
• 10 Day Avg. Volume: 352,262
• 30 Day Avg. Volume: 211,770
• PEG Ratio: 0.20
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 2.19
• P/FCF Ratio: 9.25
• 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): 34.24
• Revenue Forecast (FY): ₪9.95B

• Rating: 82 Outperform
• Price Target: 42,816.00 ▲(15.88% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by strong financial quality—improving profitability, significant debt reduction, and solid free cash flow. Technicals are moderately supportive with positive trend/momentum but a near-overbought stochastic reading. Valuation is a positive contributor given the low P/E, with no dividend data available.

Positive Factors

Sustained Revenue Growth

Nice has delivered multi-year top-line expansion (2021–2025) with double-digit growth in 2025, reflecting strong product demand and enterprise adoption. Persistent revenue growth supports reinvestment, R&D, and scale advantages that drive durable competitive positioning over months to years.

Improving Profitability

Margin expansion to ~20%+ demonstrates scalable economics and pricing power across software and services. Higher and stable gross/EBIT margins imply durable cash generation potential, enabling investment in product development and shareholder returns without sacrificing operating flexibility.

De-risked Balance Sheet & Capital Strength

Sharp debt reduction and rising equity create substantial financial flexibility, lowering interest burden and recession vulnerability. A conservative leverage profile supports M&A optionality, continued R&D spend, and resilience in cash generation across a 2–6 month horizon and beyond.

Negative Factors

Cash Conversion Volatility

Operating cash flow has at times lagged reported earnings, indicating working-capital timing or cash conversion variability. This reduces near-term liquidity predictability and can pressure funding for growth or require capital allocation tradeoffs despite strong absolute FCF.

Non-linear Margin Progression

Although margins are generally strong, year-to-year dips signal exposure to cost pressure or scaling inefficiencies. Sustaining elevated margins depends on execution in product delivery and cost controls; inconsistent margin trends raise execution risk over coming quarters.

Slight Asset Base Contraction

A modest decline in total assets could reflect reduced reinvestment or asset-light shifts, potentially limiting capacity expansion or indicating slower organic investment. If persistent, it may constrain longer-term growth initiatives or require increased discretionary spending to expand.

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 makes money primarily by selling software and services to enterprises and public-sector organizations. A major revenue stream is cloud subscriptions, including CX and contact center software delivered via its cloud platform(s) (commonly marketed as NICE CXone), where customers pay recurring fees (typically tied to user/agent seats, usage, or contracted capacity) for access to applications such as omnichannel routing, workforce engagement/optimization, analytics, and automation. NICE also generates revenue from term licenses and maintenance/support for customers using on-premises deployments (where applicable), with ongoing support fees providing recurring revenue. In addition, NICE earns professional services revenue from implementation, integration, training, and advisory services that accompany deployments and expansions. For its financial crime, risk, and compliance offerings, NICE similarly earns revenue through subscriptions and/or licenses plus maintenance and services, supporting use cases like fraud detection, anti-money laundering (AML), and compliance-related analytics. Partner ecosystems (e.g., systems integrators, channel partners, and technology alliances) can contribute to sales motion and deployments, but specific partnership revenue shares are not publicly specified here.

Nice Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth through 2025, expanding net margin (to ~20.8% in 2025), and a notably de-risked balance sheet with sharply reduced debt (to ~164M in 2025) and rising ROE (~17.1%). Cash generation is solid (~755M FCF in 2025) but cash conversion has been somewhat uneven (OCF to net income ~0.87 in 2025).

Income Statement

Revenue growth remains solid and consistent over time (2021–2025 annual revenue rising from ~1.92B to ~3.19B, with 2025 growth at ~10.7%). Profitability is a key strength: gross margin is steady in the mid-to-high 60% range, while net margin has expanded meaningfully (to ~20.8% in 2025 vs ~16.2% in 2024). Operating profitability is also strong with EBIT margin holding around ~22% in 2024–2025. Main weakness: margin progression is not perfectly linear year-to-year (e.g., EBITDA margin dipped slightly in 2025 vs 2024), suggesting some cost pressure even as earnings improved.

Balance Sheet

The balance sheet looks very conservative and improving: debt has been reduced sharply (from ~879M in 2021 to ~164M in 2025), driving debt relative to equity down to ~0.04 in 2025. Equity has steadily grown (~2.83B to ~3.88B from 2021 to 2025), supporting financial flexibility. Returns to shareholders are also improving (return on equity rising to ~17.1% in 2025). The main watch item is that total assets were slightly lower in 2025 vs 2024, but the overall leverage and capital strength remain standout positives.

Cash Flow

Cash generation is strong with high free cash flow in absolute dollars (~755M in 2025) and free cash flow closely matching reported earnings (free cash flow to net income ~0.97 in 2025). Free cash flow growth was positive in 2025 (~6.1%), though not consistently strong across all years (including a decline in 2021). A key weakness is that operating cash flow has at times lagged earnings (operating cash flow to net income below 1.0 across the period, improving to ~0.87 in 2025), indicating working-capital timing or cash conversion volatility even though overall cash generation remains healthy.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.19B	2.74B	2.38B	2.18B	1.92B
Gross Profit	2.12B	1.83B	1.61B	1.50B	1.30B
EBITDA	924.29M	810.00M	628.76M	525.59M	440.48M
Net Income	662.58M	442.59M	338.30M	265.94M	199.22M
Balance Sheet
Total Assets	5.11B	5.30B	5.12B	4.86B	4.66B
Cash, Cash Equivalents and Short-Term Investments	417.48M	1.62B	1.41B	1.57B	1.42B
Total Debt	163.89M	563.60M	782.97M	777.46M	878.52M
Total Liabilities	1.23B	1.69B	1.76B	1.80B	1.83B
Stockholders Equity	3.88B	3.59B	3.34B	3.04B	2.83B
Cash Flow
Free Cash Flow	755.16M	732.87M	477.25M	397.82M	394.61M
Operating Cash Flow	775.64M	832.64M	561.43M	479.71M	461.82M
Investing Cash Flow	173.15M	-397.40M	-293.58M	-152.35M	-261.50M
Financing Cash Flow	-1.07B	-456.60M	-290.27M	-164.50M	-261.82M

Nice Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36950.00
• 50DMA: Positive
• 100DMA: Positive
• 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 36148.00, above the 50-day MA of 35525.00, and below the 200-day MA of 44363.10, indicating a neutral trend. The MACD of 888.68 indicates Negative momentum. The RSI at 52.12 is Neutral, neither overbought nor oversold. The STOCH value of 24.11 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
NICE	82 Outperform	₪22.30B	11.11	15.11%	―	4.34%	27.35%
ONE	66 Neutral	₪4.85B	20.43	―	2.55%	14.11%	25.79%
MTRX	66 Neutral	₪9.71B	23.68	―	2.41%	8.82%	14.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%