NICENICE Ltd.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.3×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 16% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NICE?
NICE Ltd. earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 5.8 points above what the capital costs: growth creates value
- Operating margin
- 22%
Operating margin · Software - Application median 6.4% · fiscal year to FY2025
- Cash conversion
- 1.28×
Cash conversion · 2.08× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 15% |
| FY2021 | 14% |
| FY2022 | 15% |
| FY2023 | 18% |
| FY2024 | 20% |
| FY2025 | 22% |
Details›
- Gross marginfiscal year to FY2025
- 66%
- Operating marginfiscal year to FY2025
- 22%
- Net marginfiscal year to FY2025
- 21%
- Free cash flow margin
- 24%
- R&D as % of revenue
- 12%
- Revenue, trailing twelve months
- $2.95B
- Free cash flow, trailing twelve months
- $698M
- Net income, trailing twelve months
- $612M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
Ranks #5 of 96 by RyuScore