Nicolet Bankshares (NIC) AI Stock Analysis

• Market Cap: $1.55B
• Dividend Yield: 1.1%
• Average Volume (3M): 95.34K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.98
• Revenue Growth: 24.31%
• EPS Growth: 97.90%
• Country: US
• Employees: 978
• Sector: Financial
• Sector Strength: 84
• Industry: Banks - Regional
• EPS (TTM): 8.03
• Shares Outstanding: 15,196,800
• 10 Day Avg. Volume: 81,338
• 30 Day Avg. Volume: 95,344
• PEG Ratio: 0.13
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.88
• Price to Cash Flow (P/CF): 12.70
• P/FCF Ratio: 6.40
• 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: $122.00
• Price Target Upside: 19.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Nicolet Bankshares demonstrates strong financial performance with robust revenue and profit growth, no debt, and a strong cash position. The stock's technical indicators show positive momentum, but caution is advised due to the RSI nearing overbought levels. The valuation is reasonable with a moderate P/E ratio and a low dividend yield. Overall, the company is well-positioned in the banking sector with favorable growth prospects.

Positive Factors

Acquisitions

NIC's history of accretive acquisitions has led to substantial growth in assets and expansion into demographically attractive areas, enhancing its market position.

Earnings

NIC reported 4Q24 results with EPS of $2.19, significantly exceeding consensus and previous estimates due to a wider net interest margin and strong credit quality.

Financial Performance

The strong credit quality is highlighted by negligible net charge-offs and minimal loan loss provisioning, underscoring stability in the company's financial health.

Negative Factors

Market Competition

Nicolet has demonstrated its ability to gain market share as larger banks focus elsewhere.

Valuation

The company's premium valuation is expected to facilitate further accretive acquisitions, positioning it for continued growth and shareholder value creation.

Nicolet Bankshares Business Overview & Revenue Model

Company Description

Nicolet Bankshares, Inc. (NIC) is a financial holding company based in Green Bay, Wisconsin. It operates through its wholly-owned subsidiary, Nicolet National Bank, providing a range of commercial and retail banking services throughout Wisconsin and Michigan. The bank caters to individuals, businesses, and governmental entities, offering products such as checking and savings accounts, personal and business loans, mortgages, as well as wealth management and trust services.

How the Company Makes Money

Nicolet Bankshares makes money primarily through the interest income generated from its lending activities, which includes personal loans, commercial loans, and mortgages. Additionally, the company earns revenue from non-interest income sources such as service charges on deposit accounts, fees from wealth management services, and transaction fees. Nicolet Bankshares also benefits from strategic partnerships and acquisitions which enhance its market presence and customer base, contributing to its overall revenue growth.

Nicolet Bankshares Financial Statement Overview

Summary

Nicolet Bankshares showcases robust financial health with strong revenue and profit growth, zero debt, and effective cash management. While the company's balance sheet reflects prudent financial management, the relatively low equity ratio and high reliance on liabilities could present challenges in adverse economic conditions. Overall, the company is well-positioned in the banking industry with favorable growth prospects.

Income Statement

Nicolet Bankshares demonstrates strong financial performance with significant revenue growth from $272.5M to $438.4M (60.9% increase) in the latest year. The gross profit margin remains robust at 100%, and net profit margin improved from 22.6% to 28.3%. EBIT margin increased significantly from 40.0% to 98.1%, indicating efficient cost management and operational performance. However, absence of EBITDA data for 2024 limits full profitability analysis.

Balance Sheet

The company exhibits a stable financial position with no total debt, enhancing its risk profile compared to industry peers. Stockholders' equity increased to $1.17B, supporting a healthy equity ratio of 13.3%. Return on equity improved to 10.6%, reflecting better profitability relative to equity. However, the relatively low equity ratio suggests reliance on liabilities, which could pose risks in volatile markets.

Cash Flow

Free cash flow grew from $89.8M to $133.7M (48.9% increase), indicating strong cash generation. The operating cash flow to net income ratio is 1.08, suggesting effective cash conversion from earnings. However, cash flow from investing activities shows significant outflows, and the absence of free cash flow to net income ratio limits deeper cash flow analysis.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
438.37M	272.50M	297.88M	225.32M	191.96M
	Gross Profit
438.37M	412.47M	297.88M	225.32M	191.96M
	EBIT
430.04M	108.89M	175.01M	81.12M	80.60M
	EBITDA
0.00	105.03M	147.67M	94.98M	91.63M
	Net Income Common Stockholders
124.06M	61.52M	94.26M	60.65M	60.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
922.36M	1.29B	1.08B	1.54B	1.34B
	Total Assets
8.80B	8.47B	8.76B	7.70B	4.55B
	Total Debt
161.39M	166.93M	542.34M	216.91M	53.87M
	Net Debt
-115.94M	-324.50M	375.10M	-400.30M	-748.99M
	Total Liabilities
7.62B	7.43B	7.79B	6.80B	4.01B
	Stockholders Equity
1.17B	1.04B	972.53M	891.89M	539.19M
Cash Flow		Free Cash Flow
133.75M	89.77M	105.16M	84.86M	68.11M
	Operating Cash Flow
133.75M	107.97M	117.40M	97.65M	78.90M
	Investing Cash Flow
-288.44M	591.46M	-516.36M	-370.60M	-208.70M
	Financing Cash Flow
199.30M	-362.73M	-41.60M	65.38M	750.60M

Nicolet Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 102.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NIC, the sentiment is Negative. The current price of 102.17 is below the 20-day moving average (MA) of 108.46, below the 50-day MA of 112.96, and below the 200-day MA of 102.92, indicating a bearish trend. The MACD of -1.25 indicates Positive momentum. The RSI at 40.14 is Neutral, neither overbought nor oversold. The STOCH value of 15.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NIC.

Nicolet Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASH	78 Outperform	$1.62B	9.90	22.65%	0.29%	4.68%	12.30%
OFG	78 Outperform	$1.58B	8.26	16.19%	3.01%	12.13%	10.42%
NIC	78 Outperform	$1.55B	12.70	11.22%	1.10%	24.31%	97.90%
MBIN	72 Outperform	$1.44B	4.98	16.25%	1.18%	23.69%	11.97%
CHCO	68 Neutral	$1.61B	13.88	16.49%	2.75%	11.10%	3.74%
FBNC	64 Neutral	$1.49B	19.53	5.38%	2.44%	-1.53%	-27.00%
Sector *	64 Neutral	$13.34B	9.25	9.42%	4.85%	16.07%	-8.44%

Nicolet Bankshares Corporate Events

Nicolet Bankshares Declares Quarterly Cash Dividend

On February 25, 2025, Nicolet Bankshares, Inc. declared a quarterly cash dividend of $0.28 per share on its common stock, payable on March 17, 2025, to shareholders of record as of March 10, 2025. This announcement reflects Nicolet’s ongoing commitment to providing value to its shareholders and may enhance its positioning within the financial services industry.