NICE Ltd (NICE, Financial) is a leading player in the software industry, with a market capitalization of $13.8 billion. As of August 7, 2023, the company's stock price stands at $218.07, marking a 3.36% gain for the day and a 9.57% increase over the past four weeks. NICE Ltd's impressive performance is reflected in its GF Score of 97 out of 100, placing it in the highest outperformance potential category.
Financial Strength Analysis
NICE Ltd's Financial Strength rank is 8 out of 10, indicating a robust financial situation. The company's high interest coverage of 40.62 and a low debt to revenue ratio of 0.37 contribute to this strong ranking. Additionally, the Altman Z-Score of 5.35 suggests that NICE Ltd is not in any immediate danger of financial distress.
Profitability Rank Analysis
The company's Profitability Rank is 9 out of 10, reflecting its high profitability. This is supported by an operating margin of 16.01% and a perfect Piotroski F-Score of 9. The company's profitability has been consistent over the past decade, with a 5-year average operating margin trend of 4.50%.
Growth Rank Analysis
NICE Ltd's Growth Rank is a perfect 10 out of 10, indicating strong growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 8.50%, and its 3-year revenue growth rate is 10.50%. The 5-year EBITDA growth rate is also 8.50%, demonstrating consistent growth in the company's business operations.
GF Value Rank Analysis
The company's GF Value Rank is 9 out of 10, suggesting that the stock is fairly valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on the company's past returns and growth.
Momentum Rank Analysis
NICE Ltd's Momentum Rank is 7 out of 10, indicating a positive momentum in the company's stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Comparison with Competitors
When compared to its competitors in the software industry, NICE Ltd stands out with its high GF Score. Matrix IT Ltd has a GF Score of 75, One Software Technologies Ltd has a score of 77, and Abra Information Technologies Ltd has a score of 63. This comparison further highlights NICE Ltd's strong performance.
Conclusion
In conclusion, NICE Ltd's high GF Score of 97, along with its strong financial strength, profitability, growth, GF Value, and momentum ranks, indicate a high outperformance potential. The company's consistent growth and profitability, coupled with its robust financial situation, make it a compelling choice for investors. However, as with any investment, it's crucial to conduct thorough research and consider the company's overall performance and market conditions.
