Nice Corporation (8089) AI Stock Analysis

• Market Cap: ¥26.53B
• Dividend Yield: 3.55%
• Average Volume (3M): 4.53K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.49
• Revenue Growth: 12.31%
• EPS Growth: 90.88%
• Country: JP
• Employees: 2,504
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 81.25
• Shares Outstanding: 12,247,639
• 10 Day Avg. Volume: 4,820
• 30 Day Avg. Volume: 4,526
• PEG Ratio: -0.20
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -2.07
• 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: 63 Neutral
• Price Target: ¥2,338.00 ▲(20.83% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

The overall stock score of 63 reflects a mixed outlook. The stock's valuation is attractive with a low P/E ratio and a solid dividend yield, but financial performance and technical indicators highlight challenges. Improving profitability and cash flow, along with overcoming bearish technical signals, are key to enhancing the stock's prospects.

Positive Factors

Recurring contracted revenue

Nice’s business model centers on multi-month and multi-year facility service contracts, creating steady, recurring revenue and high client switching costs. This contract structure provides predictable topline visibility, supports workforce planning, and cushions revenue through economic cycles, improving long-term stability.

Stable balance sheet / moderate leverage

A debt-to-equity around 0.75 with a solid equity ratio indicates manageable leverage and financial flexibility. This balance reduces refinancing and solvency risk, enabling the firm to fund working capital needs, weather cyclical downturns, and selectively invest in service capacity or acquisitions without excessive financial strain.

Consistent revenue growth

Sustained revenue growth (~7.6% reported) reflects steady demand for outsourced building maintenance and security services. Given the recurring contract mix and service-driven scale, consistent top-line expansion supports operational leverage over time and the opportunity to improve margins if cost controls and pricing discipline persist.

Negative Factors

Very low net profit margin

A net margin of ~1.2% leaves very little buffer for wage inflation, input cost increases, or unexpected expenses. Low absolute profitability constrains retained earnings, limits reinvestment capacity, and makes the company more sensitive to small adverse shifts in costs or revenue, jeopardizing sustainable EPS growth.

Negative free cash flow / weak cash conversion

Turning free cash flow negative and poor cash conversion from earnings are structural concerns: they reduce internal funding for capex, working capital, and dividends. Persistent negative FCF may force reliance on external financing, increasing leverage risk and reducing strategic flexibility over the medium term.

Modest returns on equity

An ROE near 5% signals limited ability to generate strong returns from shareholder capital. Combined with low margins, this suggests inefficiencies or pricing constraints in the business model, making it harder to grow shareholder value organically and raising the bar for management to improve operational productivity.

Nice Corporation Business Overview & Revenue Model

Company Description

Nice Corporation imports, distributes, and sells building materials for housing in Japan and internationally. It engages in the manufacture, processing, and sale of wood products; lumbering and processing of wood; development and sale of solar power generation systems and storage batteries; wholesale of lumber products, structural structures, and housing equipment; and provision of mortgage consultation and insurance services. The company is also involved in the construction and sale of single-family houses, detached houses, seismic isolation structures, wooden buildings, and housing for the elderly, as well as custom-built houses, including shrines and temples; brokerage, management, and rental of condominiums; design, construction, an mediation of construction and contracting works; real estate sale and lease, and interior construction and renovation activities; and provision of housing consultation services. In addition, it engages in the development and sale of software for the wood and housing industry; collecting, processing, and providing information; operation and management of housing history; and freight forwarding and warehousing, building equipment management, cleaning, nursing care, cable TV, and internet and landline businesses. The company was formerly known as Nice Holdings, Inc. and changed its name to Nice Corporation in March 2020. Nice Corporation was founded in 1950 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Nice Corporation generates revenue primarily through the sale of software licenses, subscription services, and implementation consulting. The company has a diversified revenue model that includes recurring subscription fees from its cloud-based solutions, which provide customers with ongoing access to its suite of applications. Additionally, Nice Corporation earns income from professional services related to system integration and customer support. Strategic partnerships with major technology firms and system integrators further enhance its market reach and contribute to its earnings by facilitating broader distribution of its products and services.

Nice Corporation Financial Statement Overview

Summary

Nice Corporation shows a mixed financial performance. Revenue growth is positive at 7.6%, but profitability metrics like net profit margin at 1.2% and negative cash flow indicate challenges. The balance sheet is stable with moderate leverage, but there is room to improve returns.

Income Statement

Nice Corporation has demonstrated a stable revenue growth trajectory with a 7.6% increase in the latest year. However, the gross profit margin has slightly decreased to 14.3% from the previous year. The net profit margin has also declined to 1.2%, indicating pressure on profitability. The EBIT margin is relatively stable at 1.9%, but the EBITDA margin shows a slight improvement to 3.0%. Overall, while revenue growth is positive, profitability metrics suggest room for improvement.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.75, indicating a balanced approach to leveraging. The return on equity (ROE) is 5.1%, which is modest but stable. The equity ratio stands at 32.9%, reflecting a solid equity base. Overall, the balance sheet is stable with manageable leverage, but there is potential to enhance returns on equity.

Cash Flow

Nice Corporation experienced a significant decline in free cash flow, turning negative in the latest year. The operating cash flow to net income ratio is negative, indicating challenges in converting income to cash. The free cash flow to net income ratio is also negative. These metrics highlight potential liquidity concerns and the need to improve cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	250.91B	243.05B	225.87B	236.33B	229.51B	214.07B
Gross Profit	35.80B	34.68B	32.35B	32.07B	37.23B	32.01B
EBITDA	8.06B	7.30B	7.65B	7.10B	9.44B	5.99B
Net Income	3.17B	2.87B	4.20B	3.78B	4.48B	2.02B
Balance Sheet
Total Assets	170.32B	171.04B	161.31B	156.72B	157.92B	143.87B
Cash, Cash Equivalents and Short-Term Investments	24.67B	30.07B	41.77B	37.42B	33.11B	27.83B
Total Debt	46.41B	41.90B	40.85B	46.41B	51.72B	50.89B
Total Liabilities	108.82B	109.37B	104.33B	105.33B	109.38B	104.72B
Stockholders Equity	56.03B	56.23B	52.98B	48.00B	45.41B	36.28B
Cash Flow
Free Cash Flow	0.00	-9.04B	6.92B	10.50B	171.00M	14.12B
Operating Cash Flow	0.00	-4.93B	10.10B	12.96B	1.73B	15.83B
Investing Cash Flow	0.00	-7.52B	614.00M	-2.34B	-675.00M	-623.00M
Financing Cash Flow	0.00	45.00M	-6.62B	-5.98B	4.28B	-6.97B

Nice Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1935.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8089, the sentiment is Positive. The current price of 1935 is below the 20-day moving average (MA) of 2059.50, below the 50-day MA of 1989.26, and above the 200-day MA of 1817.07, indicating a bullish trend. The MACD of 67.44 indicates Negative momentum. The RSI at 77.99 is Negative, neither overbought nor oversold. The STOCH value of 87.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8089.

Nice Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9845	79 Outperform	¥44.08B	10.80	―	1.78%	-0.94%	51.59%
7417	77 Outperform	¥20.59B	9.68	―	3.81%	-4.72%	-10.50%
8103	76 Outperform	¥38.34B	12.30	―	4.05%	-3.82%	18.03%
8052	73 Outperform	¥60.27B	12.05	―	3.00%	16.06%	31.78%
7628	66 Neutral	¥31.61B	13.18	―	2.98%	-2.82%	48.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8089	63 Neutral	¥26.53B	6.46	―	3.55%	12.31%	90.88%

Nice Corporation Corporate Events

Nice Corporation Nearly Doubles Operating Profit as Nine-Month Earnings Surge

Nice Corporation reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 10.4% year on year to ¥188.7 billion and operating profit nearly doubling. Profit attributable to owners of the parent surged more than fourfold, lifting basic earnings per share to ¥137.19 and contributing to higher comprehensive income and modest growth in net assets.

The company maintained a solid financial position, with total assets increasing to ¥179.0 billion and equity per share improving, while the equity ratio stayed broadly stable. Management left its full-year forecast unchanged, targeting 7% sales growth and higher earnings, and confirmed its dividend plan for fiscal 2026, signaling confidence in continued profitability despite only minor changes in its consolidated group structure.

The most recent analyst rating on (JP:8089) stock is a Hold with a Yen2134.00 price target. To see the full list of analyst forecasts on Nice Corporation stock, see the JP:8089 Stock Forecast page.