Stock analysis · Bull Rankings model

NICE analysis

NICE Ltd.Software - Application. Scored on the same transparent model behind the daily rankings.

NICE
NICE Ltd. · Software - Application
FCF$698mC+
Rev+7.7%B
D/E0.02A-
P/E14.6xA-
PEG0.75A-
82.2Score
$100.24$5.9B
1Y Target$125.85Analyst consensus · 13 analysts
5Y Target$158.88Compound horizon
10Y Target$203.76Long-dated conviction
FCF$698mTTM
C+
FCF $698m — respectable but not differentiating
Rev+7.7%TTM YoY
B
Revenue +7.7% — at or above S&P median
D/E0.02
A-
D/E 0.02 — less debt than most Technology peers (≈25th pctile)
P/E14.6x
A-
P/E 14.6 — cheaper than most Technology peers (≈25th pctile)
PEG0.75
A-
PEG 0.75 — strong; Lynch's preferred zone

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 82.2
Quality83.7
Growth76.0
Value87.4
Why this score
  • Buying back stock
Entry · Margin of safety
52-week rangeNear 52-week low
35% off the 12-month high
vs DCF fair value54% belowest. fair value ~$220
What the price assumes: free cash flow compounding at ~-10% a year for the next decade — vs the ~13% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability38% · B+gross profit ÷ total assets (Novy-Marx)
ROIC13.2% · B+return on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
NICE’s CXone Mpower platform is driving a 7.7% YoY revenue lift, backed by a 20.8% profit margin and a $698 m free‑cash‑flow that fuels aggressive buybacks—creating a 14.9× P/E that already prices in a 10‑year FCF growth of roughly –10%/yr. Our model’s 83/100 quality‑growth score, anchored by a 84/100 quality pillar, shows that NICE’s high ROE of 15.8% and low debt‑to‑equity of 0.02 give it the financial muscle to sustain this upside. The single lever that will lift the stock is the continued expansion of the AI‑powered CXone suite into new verticals, which should keep revenue growth above the implied –10%/yr and push the price toward the analyst consensus of $125.85.
Moat
NICE’s moat is the CXone Mpower platform’s AI‑driven automation, which bundles customer‑engagement data, knowledge bases, and AI models into a unified cloud service. This integration locks in enterprise customers, creating high switching costs and a network effect as more agents and data feed back into the platform, a barrier that rivals cannot replicate quickly. The platform’s ability to scale across the Customer Engagement and Financial Crime segments keeps margins high and drives the 20.8% profit margin.
Risk
The bear case hinges on the risk that CXone’s growth could stall if competitors launch cheaper, plug‑and‑play AI solutions, eroding NICE’s pricing power. A P/E of 14.9× already discounts a modest 7.7% revenue growth, and the reverse‑DCF implied FCF growth of –10%/yr suggests that the market is pricing in a slowdown. If revenue growth decelerates below 5% or margins compress to 15%, the stock would struggle to justify its current valuation.
Horizon
1-3 yr $125.85 (13-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $158.88 at ~10% CAGR — dividend + buyback compounding. 10 yr $203.76 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

NICE vs the Top Picks average

PillarNICEBook avgDiff
Quality0.840.84in line
Growth0.760.84-0.08
Value0.870.78+0.09

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-3.0 over 47 daily scores
From 85.2 (Jun 22) → 82.2 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+0.2%
90-day change+0.2%
Forward EPS estimate$12.66

Over the last 90 days, what analysts expect NICE to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
19
Position size
$1,905
3.8% of portfolio
Stop price
$75.18
25% below $100.24
$ at risk if stopped
$476.14
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

NICE Ltd. (NICE): score, valuation & FAQ

NICE Ltd. (NICE) is a Software - Application company that scores 82.2 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A-), P/E (A-) and PEG (A-). On valuation, NICE sits about 54% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -10% annual free-cash-flow growth over the next decade.

Is NICE a good stock to buy?

Bull Rankings scores NICE 82.2 out of 100 on its quality-growth model, which is a strong reading. That is driven by D/E (A-), P/E (A-) and PEG (A-). A score is a quantitative screen of NICE Ltd.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does NICE score 82.2 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). NICE earns its highest marks on D/E (A-), P/E (A-) and PEG (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is NICE overvalued or undervalued?

Based on $100.24, NICE sits about 54% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -10% annual free-cash-flow growth over the next decade. It trades at a 14.6x P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in NICE?

The bear case hinges on the risk that CXone’s growth could stall if competitors launch cheaper, plug‑and‑play AI solutions, eroding NICE’s pricing power. A P/E of 14.9× already discounts a modest 7.7% revenue growth, and the reverse‑DCF implied FCF growth of –10%/yr suggests that the market is pricing in a slowdown. If revenue growth decelerates below 5% or margins compress to 15%, the stock would struggle to justify its current valuation.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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