Nice Corporation (8089) AI Stock Analysis

• Market Cap: ¥27.98B
• Dividend Yield: 3.55%
• Average Volume (3M): 4.53K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.44
• 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: 67 Neutral
• Price Target: ¥2,549.00 ▲(31.73% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven primarily by mixed fundamentals: good revenue growth and a stable balance sheet are offset by weakening margins and negative free cash flow. Technicals are supportive but overbought, while valuation is a clear positive due to the low P/E and solid dividend yield.

Positive Factors

Recurring, contract-based revenue

Nice's core model centers on multi-month and multi-year service contracts for cleaning, security and facility management, providing predictable recurring revenue and higher customer retention. That structural revenue visibility supports stable planning, steady staffing utilization and lower demand cyclicality over months.

Stable balance sheet and manageable leverage

A moderate debt-to-equity ratio and solid equity base give Nice financial flexibility to fund working capital and modest investments without excessive refinancing risk. This manageable leverage profile supports contract delivery and bids while limiting structural solvency risk over the medium term.

Consistent top-line growth

Recurring demand for outsourced facility services has produced consistent revenue growth near high single digits, reflecting contract expansion and site additions. Sustained top-line growth supports scale benefits, potential operational improvements and the ability to reinvest in service quality and capacity.

Negative Factors

Eroding profitability margins

Margins are thin in this labor- and cost-sensitive services business, leaving limited buffer to absorb wage or input-cost inflation. Persistently low net and operating margins constrain retained earnings, reduce reinvestment capacity and increase the firm's exposure to margin shocks over the medium term.

Negative free cash flow and weak cash conversion

Negative free cash flow and poor conversion of accounting profits into cash indicate working-capital or operational cash strain. This undermines liquidity for contract performance, forces reliance on external funding for growth or dividends, and limits ability to fund capex or cushion downturns.

Low return on equity

A modest ROE signals limited efficiency in turning capital into profit relative to higher-return peers. Over time, low ROE can hinder capital attraction and shareholder returns, meaning management must improve margins or asset utilization to materially boost long-term value creation.

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

Revenue grew 7.6%, but profitability weakened (net margin down to 1.2%) and free cash flow turned negative, raising cash conversion and liquidity concerns despite a stable balance sheet.

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	41.99B	40.97B	46.64B	52.08B	51.38B
Total Liabilities	108.82B	109.37B	104.33B	105.33B	109.38B	104.71B
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: Positive
• RSI: Negative
• STOCH: Neutral

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 2267.35, below the 50-day MA of 2101.52, and above the 200-day MA of 1868.25, indicating a bullish trend. The MACD of 70.24 indicates Positive momentum. The RSI at 71.31 is Negative, neither overbought nor oversold. The STOCH value of 75.96 is Neutral, 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	¥40.97B	8.57	―	1.78%	-0.94%	51.59%
3176	78 Outperform	¥47.63B	5.27	―	3.87%	2.66%	-11.41%
8052	73 Outperform	¥54.03B	13.47	―	3.00%	16.06%	31.78%
8089	67 Neutral	¥27.98B	5.97	―	3.55%	12.31%	90.88%
9902	64 Neutral	¥71.23B	15.26	―	3.17%	5.95%	23.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9830	61 Neutral	¥151.54B	9.98	―	2.42%	9.74%	6.48%

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.