NICE Ltd American Depositary Shares (NICE)

FairStock Score: 86/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $457 million in annual free cash flow (7.7% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 16.4% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.02, providing financial flexibility
• Altman Z-Score of 4.2 confirms minimal bankruptcy risk and strong solvency

AI Analysis

NICE Ltd American Depositary Shares is a small-cap technology company valued at $5.9 billion. The business generates $2.9 billion in annual revenue with a 5.1% net margin and $457 million in free cash flow. From a quality standpoint, NICE shows solid Piotroski F-Score of 7/9 and healthy Altman Z-Score of 4.2. On valuation, the stock is attractively valued at 10.2x earnings, with a modest 18% margin of safety vs Graham Number. Growth dynamics show revenue growing at 9.0% and profit growth of 51.3%. Our composite FairStock Score of 86/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates NICE's consistent 16% ROE at just 10x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $457 million in annual free cash flow (7.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer